Certainly! The following is a transcription suitable for an educational website:---4. **Present Value Payback Period:** Calculate the present value payback period in years for the proposed investment, assuming that cash inflows occur evenly throughout the year. *Note:* Due to this assumption, the present value calculations will be approximate, not exact. Use the appropriate factors from [Appendix C, Table 1](#) and round your answer to one decimal place. For example, 3.481 years should be rounded to 3.5 years.5. **Internal Rate of Return (IRR):** Determine the internal rate of return and round it to one decimal place. For example, if the IRR is 13.612%, you should report it as 13.6%.6. **Modified Internal Rate of Return (MIRR):** Calculate the modified internal rate of return, rounded to one decimal place. To assist with this calculation, you may consult the following references: - [Support Article on Microsoft's Office Website](https://support.office.com/en-us/Search/results?query=mirr+function&src=as) - [Journal of Accountancy Article](www.journalofaccountancy.com/issues/2017/feb/calculate-internal-rate-of-return-in-excel.html)*Page 0527*---No graphs or diagrams are present in this segment. **Basic Capital Budgeting Techniques; No Taxes, Uniform Net Cash Inflows; Spreadsheets**Bob Jensen Inc. purchased a $650,000 machine to manufacture specialty taps for electrical equipment. Jensen expects to sell all it can manufacture in the next 10 years. To encourage capital investments, the government has exempted taxes on profits from new investments. This legislation is to be in effect for the foreseeable future. The machine is expected to have a 10-year useful life with no salvage value. Jensen uses straight-line depreciation. The net cash inflow is expected to be $150,000 each year for 10 years. Jensen uses a 12% discount rate in evaluating capital investments. Assume, for simplicity, that MACRS depreciation rules do not apply.

The present value payback period indicates the time period under which the initial investment or…

4. The present value payback period, in years, of the proposed investment under the assumption that cash inflows occur evenly throughout the year. (Note: Because of this assumption, the present value calculations will be approximate, not exact.) To calculate present value amounts, use the appropriate factors from Appendix C, Table 1. Round your answer to 1 decimal place. For example, 3.481 years = 3.5 years. 5. The internal rate of return (IRR), rounded to 1 decimal place (e.g., 13.612% = 13.6%). Page 0527 6. The modified internal rate of return (MIRR), rounded to 1 decimal place. (In conjunction with this requirement, you might want to consult either of the following two references: https://support.office.com/en-us/Search/results?query=mirr+function&src=as and/or www.journalofaccountancy.com/issues/2017/feb/calculate-internal-rate-of-return-in-excel.html.)

4. The present value payback period, in years, of the proposed investment under the assumption that cash inflows occur evenly throughout the year. (Note: Because of this assumption, the present value calculations will be approximate, not exact.) To calculate present value amounts, use the appropriate factors from Appendix C, Table 1. Round your answer to 1 decimal place. For example, 3.481 years = 3.5 years. 5. The internal rate of return (IRR), rounded to 1 decimal place (e.g., 13.612% = 13.6%). Page 0527 6. The modified internal rate of return (MIRR), rounded to 1 decimal place. (In conjunction with this requirement, you might want to consult either of the following two references: https://support.office.com/en-us/Search/results?query=mirr+function&src=as and/or www.journalofaccountancy.com/issues/2017/feb/calculate-internal-rate-of-return-in-excel.html.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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es McCann Co. has identified an investment project with the following cash flows. Year 1 234 a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 16 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Cash Flow $820 1,130 1,390 1,525 b. C. Present value at 10% Present value at 16% Present value at 25%
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