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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1
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
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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