quiz 2

Can you show me how this is done?   Kepner Inc, is considering a capital investment project. that will provide annual cash flows of  $31,248, requires an initial investment  of $62,241, and the PV of cash flows is $106,796.   What is the profitability index of the project? Round your answer 2 decimal places Selected Answer:  76 Correct Answer:  1.72 ± 0.01

Question 2: Evaluating investment projects You are planning to invest $30,000 in research & development (R&D). This investment will generate cost savings of $21,000 in year 1 and $15,000 in year 2. After 2 years, the salvage value is zero. The cost of capital is 25% a year. a) Compute the net present value. NPV = $ Should you invest? OYES ONO b) Following a government stimulus program, the cost of capital decreased to 10% a year. Compute the net present value at the new cost of capital. NPV = $ Should you invest now? OYES ONO c) The economy is at full employment and is beginning to overheat (i.e., total demand exceeds the available capacity, which leads to rapid price increases). Firms' investment activity increases total demand and contributes to economic overheating. To prevent high inflation, the Federal Reserve chairman wants to reduce firms' investment activity. The Federal Reserve can control the cost of capital in the economy by adjusting its benchmark interest rate. To reduce…

Calculate the IRR for the picture enclosed

Intro A project requires an initial investment of $77.4 million to buy new equipment, and will provide after-tax cash flows of $27 million per year for 4 years. Part 1 What is the project's internal rate of return? 3+ decimals Submit

Question 6 (B/C Analysis):  A) Construction Project You are planning to invest your money in a new project that will have a first cost of $1 million and an annual maintenance cost of $50,000 per year. The income of the project is expected to be $300,000 per year. The project will have an 10-year life. At an interest rate of 10% per year compounded, should the project be undertaken (Perform B/C Analysis)? B /C =      B )Alternative Investment If there is another option which, is you invest the same amount (1,000,000) in an investment company that gives 3% per year rate of return, The investment will will be for 10-year . How much the investment company will give every year?  Which option would be better?

Question 6 options: Investigation and a reasonable amount of work had brought the following project to the attention of Arthur Morgan, CEO of Valentine Ventures.   The following information is presented to you:               CCA rate Building:                              4%             CCA rate Equipment:                        30%             Cost of Capital                                    12%             Corporate Tax Rate                             40%   An immediate cash outlay of $800,000 will be required to purchase vacant land.   The vacant land will be required to house the specialized building that will be constructed over the next 2 years.  The building will require an immediate down payment of $700,000 now and $1,600,000 upon completion of the building at the end of the second year. New equipment also will be placed in the building at the end of the 2nd year.  The equipment will require annual year end purchase payments of $400,000 in year one and two.  The equipment…

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I need this question answer general accounting

NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $45,000 and a cash inflow of $8,000 per year. Assume that the firm has an opportunity cost of 18%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Text ia Librai Calculat Resource Enter your answer in the answer box and then click Check Answer, Check Answer ic Study es Clear All part remaining unication Tools 10:11 4/19/ P Type here to search insert f10

You are considering investing in a project with an initial outlay of $50,000 and the following year end net cash flows; Yr1: $17,000, Yr2: $17,000, Yr3: $12,000, Yr4: $12,000, Yr5: $9,000. Calculate the project’s IRR   Group of answer choices   14%   13%   12%   11%

Question 6   A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?    Group of answer choices   $9,211.06 $9,250.00 $8,166.19 $7,899.16 $8,098.24

Question Completion Status: QUESTION 1 Tyrell Corporation is considering a project with the following cash flows (in millions of dollars): Year Cash flows -$200 $100 $150 $200 -$100 0 1 ·234 If the required return is 12%, what is the MIRR of the project? 16.45% 18.36% 20.34% 22.49% 26.86% QUESTION ?

Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows of $9,550 per year for 8 years, and a cost of capital of 8.80%.Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices 13.70% 18.32% 17.13% 14.90% 14.15%

Question Content Area There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $36,000 and is expected to generate the following cash flows:   First Year Second Year Third Year Total Alpha Project $32,500   $22,000     $4,500   $59,000 Beta Project 8,000   23,000     28,000   59,000 (Click here to see present value and future value tables) A. If the discount rate is 15%, compute the NPV of each project. Round your present value factor to three decimal places and final answer to answer to 2 decimal places. Alpha Project $fill in the blank 1 Beta Project $fill in the blank 2 B. Which project should be recommended.     .

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QUESTION 3 You start to plan a big project. The initial purchase of the land and materials will cost $90 million today. The project will generate $15 million of income per year for the next 12 years. At the end of the 12 th the land (Hint: CF in year 12=- $5 million). The IRR equals 0% 11.42% year, you will need to spend $20 million to restore 12.35% 7.29%

The management of Bronco Busters Boots Inc. is considering a project with a net initial outlay of $60,000 and an annual net cash inflow estimated at $17,500 over the project's life of 5 years.  The project has a cost of capital of 8 percent.  What is the project's NPV?   Question 4 options:   A)  −{"version":"1.1","math":"<math xmlns="http://www.w3.org/1998/Math/MathML"><mo>-</mo></math>"}$109   B)  $53,821   C)  $19,891   D)  $9,872

Question 7. You have been asked to give your professional opinion about which of the two projects below, should be pursued. Which project is the better option? The discount rate is 7%, for both projects. Each project lasts five years. The initial investment and cash flows for the two projects are: Project A .Initial investment: $15 million . Cash Flow Year 1: $3 million . Cash Flow Year 2: $3 million . Cash Flow Year 3: $5 million . Cash Flow Year 4: $5 million . Cash Flow Year 5: $5 million Project B • Initial investment: $20 million . Cash Flow Year 1: $2 million . Cash Flow Year 2: $4 million .C . Copy .( Look Up Translate >

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Accounting project A is currently being considered by company

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