-Btyfes91081112131415Nugent Communication Corp. is investing $9,904,424 in new technologies. Thecompany expects significant benefits in the first seven years after installation (as canbe seen by the cash flows). Assuming a discount rate of 10%, the discountedpayback period for the project isYears 1Cashyears.HSSE56話Flows21KON KEYNES$2,278,799 $4,946,212 $2,669,678 $1,533,125 $1,016,125 $1,327,875 $562,936**路59维

Step 1:Excel:Discount factor is 10% Year 0Year 1Year 2Year 3Year 4Year 5Year 6Year 7Cash…

Answered: - B tyfes 9 10 8 11 12 13 14 15 Nugent…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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Coughlin Motors is considering a project with the following expected cash flows:Year Project Cash Flow0 -$700 million1 200 million2 370 million3 225 million4 700 millionThe project's WACC is 10 percent. What is the project's discounted payback?a. 3.15 yearsb. 4.09 yearsc. 1.62 yearsd. 2.58 yearse. 3.09 years
McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $800 2 1,030 3 1,340 4 1,110 a If the discount rate is 10 percent, what is the present value of these cash flows? b What is the present value at 18 and 28 percent?
Consider the following investment project: n An I0 -$8,500 9%1 $4,400 12%2 $4,400 10%3 $1,500 13%4 $3,500 12%5 $4,300 10%Suppose, as shown in the preceding table, that the company's reinvestment opportunities (that is, its MARR) change over the life of the project. For example, the company can invest funds available now at 9% for the first year, 12% for the second year, and so forth. Calculate the net present worth of this investment, and determine its acceptability.
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Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$89300 $10800 $25600 $34000 $35200 $51600 What's the net present value (NPV) of the project, assuming 9.39% discount rate?
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Annual cash inflows from two competing investment opportunities aregiven. Each investment opportunity will require the same initial investment.Year AInvestmentB123$10,00013,000$39,00016,000$13,000$13,00013,000$39,000Requirement1. Assuming a 12% interest rate, which investment opportunity would you choose?
Use the information below to answer Question#40: GIVEN: The XYZ Company is considering the following project with its corresponding financial data. The Company requires a 9% return from its investments. $ 500,000 $ 200,000 $ 225,000 $ 245,000 Initial investment: Expected Cash in-flow Year 1: Expected Cash in-flow Year 2: Expected Cash in-flow Year 3: Present Value Factor of 1 at 9%: n=1: 0.91743 n=2: 0.84168 n=3: 0.77218 40) Choose from one of the following that accurately depicts this decision: A) This investment should not be considered because NPV is a negative $62,048 B) This învestment should be considered because NPV equals positive $62,048 C) This investment should be considered because the IRR for this investment is obviously less than its Required Rate of Return D) B and Care both correct
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 and 3.5 years, respectively. 18 Ints Time: 1 4 5 Cash flow: $66, 400 $84,600 $141,600 $122,600 $81,800 $351,000 Print Use the NPV decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) References NPV Should it be accepted or rejected? accepted O rejected

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