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arks Window Help eBook v2.cengagenow.com CengageNOWv2 | Online teaching and learning resource from Cengage L... Start Page Net Present Value Method The following data are accumulated by Wocester Hat Company in evaluating the purchase of $176,100 of equipment, having a four-year useful life: Net Income (Loss) $42,000 Net Cash Flows $72,000 Year 1 Year 2 26,000 Year 3 13,000 Year 4 (1,000) 55,000 42,000 28,000 Present Value of $1 at Compound Interest < Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 80 3 Check My Work 2A a MAY 1 tv 2 MacBook Air 96 F6 Next Wed N Email Instructor Save and Exit Submit Assignment for Grading ZA W F7 DII F8 4 F9 F10 F11 80 marks Window Help Wed May 1 7:11| + 88 v2.cengagenow.com CengageNOWV2 | Online teaching and learning resource from Cengage L... Start Page eBook 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, use the minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present value b. Would management be likely to look with favor on t Alpha-numeric input field No Feedback Check My Work a. Multiply the present value factor for each year by that year's net cash flow. Subtract the initial investment from the total present value of the net cash flow. Check My Work MAY tv 1 MacBook Air Next > Email Instructor Save and Exit Submit Assignment for Grading A ® W DII 4 A F6 F7 F8 F9 F10 - 啡 F11 F12 7 Ο

arks Window Help eBook v2.cengagenow.com CengageNOWv2 | Online teaching and learning resource from Cengage L... Start Page Net Present Value Method The following data are accumulated by Wocester Hat Company in evaluating the purchase of $176,100 of equipment, having a four-year useful life: Net Income (Loss) $42,000 Net Cash Flows $72,000 Year 1 Year 2 26,000 Year 3 13,000 Year 4 (1,000) 55,000 42,000 28,000 Present Value of $1 at Compound Interest < Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 80 3 Check My Work 2A a MAY 1 tv 2 MacBook Air 96 F6 Next Wed N Email Instructor Save and Exit Submit Assignment for Grading ZA W F7 DII F8 4 F9 F10 F11 80 marks Window Help Wed May 1 7:11| + 88 v2.cengagenow.com CengageNOWV2 | Online teaching and learning resource from Cengage L... Start Page eBook 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, use the minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present value b. Would management be likely to look with favor on t Alpha-numeric input field No Feedback Check My Work a. Multiply the present value factor for each year by that year's net cash flow. Subtract the initial investment from the total present value of the net cash flow. Check My Work MAY tv 1 MacBook Air Next > Email Instructor Save and Exit Submit Assignment for Grading A ® W DII 4 A F6 F7 F8 F9 F10 - 啡 F11 F12 7 Ο

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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arks Window Help eBook v2.cengagenow.com CengageNOWv2 | Online teaching and learning resource from Cengage L... Start Page Net Present Value Method The following data are accumulated by Wocester Hat Company in evaluating the purchase of $176,100 of equipment, having a four-year useful life: Net Income (Loss) $42,000 Net Cash Flows $72,000 Year 1 Year 2 26,000 Year 3 13,000 Year 4 (1,000) 55,000 42,000 28,000 Present Value of $1 at Compound Interest < Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 80 3 Check My Work 2A a MAY 1 tv 2 MacBook Air 96 F6 Next Wed N Email Instructor Save and Exit Submit Assignment for Grading ZA W F7 DII F8 4 F9 F10 F11
Transcribed Image Text:arks Window Help eBook v2.cengagenow.com CengageNOWv2 | Online teaching and learning resource from Cengage L... Start Page Net Present Value Method The following data are accumulated by Wocester Hat Company in evaluating the purchase of $176,100 of equipment, having a four-year useful life: Net Income (Loss) $42,000 Net Cash Flows $72,000 Year 1 Year 2 26,000 Year 3 13,000 Year 4 (1,000) 55,000 42,000 28,000 Present Value of $1 at Compound Interest < Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 80 3 Check My Work 2A a MAY 1 tv 2 MacBook Air 96 F6 Next Wed N Email Instructor Save and Exit Submit Assignment for Grading ZA W F7 DII F8 4 F9 F10 F11
80 marks Window Help Wed May 1 7:11| + 88 v2.cengagenow.com CengageNOWV2 | Online teaching and learning resource from Cengage L... Start Page eBook 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, use the minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present value b. Would management be likely to look with favor on t Alpha-numeric input field No Feedback Check My Work a. Multiply the present value factor for each year by that year's net cash flow. Subtract the initial investment from the total present value of the net cash flow. Check My Work MAY tv 1 MacBook Air Next > Email Instructor Save and Exit Submit Assignment for Grading A ® W DII 4 A F6 F7 F8 F9 F10 - 啡 F11 F12 7 Ο
Transcribed Image Text:80 marks Window Help Wed May 1 7:11| + 88 v2.cengagenow.com CengageNOWV2 | Online teaching and learning resource from Cengage L... Start Page eBook 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, use the minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present value b. Would management be likely to look with favor on t Alpha-numeric input field No Feedback Check My Work a. Multiply the present value factor for each year by that year's net cash flow. Subtract the initial investment from the total present value of the net cash flow. Check My Work MAY tv 1 MacBook Air Next > Email Instructor Save and Exit Submit Assignment for Grading A ® W DII 4 A F6 F7 F8 F9 F10 - 啡 F11 F12 7 Ο
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