Homework #6A (Payback period and Discounted payback period) 3

QUESTION 7 Use the information in the table below for the following 5 q A capital investment project is estimated to have the follow 1 21 4 -$60,000 $20,000 $22,500 $17,500 $25,000 The company utilizes a discount rate of 15% to evaluate ca thoose the closest answer. Assume cash flows are receive The NET PRESENT VALUE for the project shown above is: D-$4,789.25

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U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Capital investment Annual net income: Total Year 1 (a) 2 Project Bono 3 4 Project Edge 5 Project Bono $160,000 14,000 Project Clayton 14,000 14,000 Click here to view the factor table. 14,000 14,000 $70,000 Project Edge Project Clayton $175,000 $200,000 18,000 17,000 16,000 12,000 9,000 $72,000 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) years 27,000 years 23,000 Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) years 21,000 13,000 12,000 $96,000

Crane Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $164,000 $180,500 $204,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 14,420 16,480 21,630 4 14,420 12,360 13,390 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view the factor table. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge years Project Clayton years

Hello, Please assist w NPV and payback method calculations for following data: Project B completion time probability should be 0.2 for 24mo instead of 0.10 Thanks

Question Help Use the NPV method to determine whether Smith Products should invest in the following projects: Project A: Costs $270,000 and offers eight annual net cash inflows of $57,000. Smith Products requires an annual return of 14% on investments of this nature. Project B: Costs $390,000 and offers 10 annual net cash inflows of $74,000. Smith Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=14%, n=8) Value 1 - 8…

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Whispering Winds Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $81,000, and annual cash outflows would increase by $40,500. In addition, the company's required rate of return is 10% Click here to view the factor table (a) Calculate the net present value on this project. (If the answer is negative, use either a negative sign preceding the number eg-5,275 or parentheses es. (5,275), For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answer to O decimal places, eg. 5,275) Net present value $ Identify whether the project should be accepted or rejected. The project should be (b) Q Search 458 PM

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x E My Home CengageNOWv2 |Online teachir x+ now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro. ta o 伯 Determine the average rate of return for a project that is estimated to yield total income of $250,000 over 4 years, costs $480,000, and has a $20,000 residual value. Next Previous Submit Test for Grading

Time Remaining 1 hour 6 minutes 10 seconds 01:06:10     Item 8   Time Remaining 1 hour 6 minutes 10 seconds 01:06:10     Living Colour Company has a project available with the following cash flows: Year Cash Flow 0 −$ 32,190 1 8,510 2 10,290 3 14,820 4 16,330 5 11,420 If the required return for the project is 9.7 percent, what is the project's NPV?   Multiple Choice   $29,180.00   $13,808.85   $14,959.58   $15,781.54   $6,620.43

of stion Given the following information about projects A and B: Project A Project B -10,000 -10,000 4,000 3,000 10,000 Time 0 Time 1 Time 2 Time 3 If alpha company uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? Select one: O O O 5,000 4,000 3,000 a. Project A b. Project B c. Project A and Project B have the same ranking. d. Cannot calculate a payback period without a discount rate.

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Project A: IRR = 4%, Initial cost =100, NPV = 200 Project B: IRR = 14%, Initial cost =200, NPV = 230 Project C: IRR = 6%, Initial cost = 300, NPV = 300 Project D: IRR = 22%, Initial cost = 100, NPV = 260 If you can only choose 1 of the above projects above, which one should you choose? Project A Project B Project C Project D Not enough information to determine which project is preferred

Consider the following two mutually exclusive projects.   Time                Project A                                 Project B 0                      -$300                                       -$405 1                      -$387                                       $134 2                      -$193                                       $134 3                      $100                                       $134 4                      $600                                       $134 5                      $600                                       $134 6                      $850                                       $150 7                      $180                                       $284 What is each project’s payback, discounted payback, IRR, and NPV with a cost of capital of 12%? Which project should be selected?

B O Points: 0 of 1 Save You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year 0 - $52 - $99 Year 1 $26 $20 Year 2 $19 $40 a. What are the IRRS of the two projects? b. If your discount rate is 4.8%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? a. What are the IRRS of the two projects? The IRR for project A is %. (Round to one decimal place.) Year 3 $22 $50 Year 4 $15 $59

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Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.)     Project Bono   Project Edge   Project Clayton   Net present value   $enter a dollar amount rounded to 0 decimal places    $enter a dollar amount rounded to 0 decimal places    $enter a dollar amount rounded to 0 decimal places          Save for Later

The following information is available on two mutually exclusive projects.  Project                   Year 0         Year 1          Year 2           Year 3         Year 4 A                           -$700           $200            $300            $400           $500 B                           -$700           $600            $300            $200           $100   If the required rate of return is 10%, which project should be selected using the net present value (NPV) method?   Group of answer choices A B

MyUSF My Home 4 CengageNOWv2 | Online teachin X + ngagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro.. to Determine the average rate of return for a project that is estimated to yield total income of $270,400 over 4 years, costs $615,000, and has a $61,000 residual value.

* Question Completion Status: QUESTION 6 You are considering two independent projects both of which have been assigned a discount rate of 11.5% percent. Based on the project NPV, what is your recommendation concerning these projects? Project A Project B Year Cash Flow Year Cash Flow -$92,250 -$45,000 1 $50,500 $59,000 1 $17,500 $30,000 O You should accept both projects. O You should reject both projects. O You should accept project A and reject project B. You should accept project B and reject project A. O You should accept project A and be indifferent to project B. Click Save and Submit to save and submit. Click Save AII Answers to save all answers. Save All A