Beene Distributing is considering a project that will return $240,000 annually at the end of each year for the next six years. If Beenedemands an annual return of 12% and pays for the project immediately, how much is it willing to pay for the project? (PV of $1, FV of $1,PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "PV of an Ordinary Annuity" to 4 decimalplaces and final answer to the nearest whole dollar.)Periodic Cash FlowP (PV of anOrdinary Annuity)Present Value

Step 1: Information givenNumber of years (n) = 6Periodic Cash Flow = $240,000Discount rate (r) = 12%…

Answered: Beene Distributing is considering a…

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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Beene Distributing is considering a project that will return $230,000 annually at the end of each year for the next ten years. If Beene demands an annual return of 9% and pays for the project immediately, how much is it willing to pay for the project? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "PV of an Ordinary Annuity" to 4 decimal places and final answer to the nearest whole dollar.) Periodic Cash Flow x P (PV of an Ordinary Annuity) Present Value x
Beene Distributing is considering a project that will return $235,000 annually at the end of each year for the next five years. If Beene demands an annual return of 10% and pays for the project immediately, how much is it willing to pay for the project? (PV of $1. EV of $1, PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your "PV of an Ordinary Annuity" to 4 decimal places and final answer to the nearest whole dollar.) Periodic Cash Flow P (PV of an Ordinary Annuity) Present Value
Consider a project with an initial investment (today, t = 0) of $200,975. This project will generate cash flows of $49,500 per year for the next 8 years, at which time (end of Year 8) the company will pay $50,000 to another for clean-up and disposal. What is the Profitability Index (PI) of the project if shareholders demand a 16.295% return? Answer with a number rounded to three decimal places, e.g., 4.0877% should be entered as 4.088.
Consider a project with an initial investment (today, t = 0) of $225,000. This project will generate cash flows of $68,750 per year for the next 6 years. The company will pay $50,000 to another for clean-up and disposal in Year 6. What is the Profitability Index (PI) of the project if shareholders demand 8.25% return? Answer in whole numbers, rounded to three decimal places.
Consider a project in which you have to invest $15,000 today and you will receive $24847 in one year. What is the internal rate of return (IRR) of this project? The IRR is % (Keep 2 decimal places). Answer:
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You have been offered an investment opportunity that pays $600 every quarter for nine years and paying you $19,000. If you can invest in a similarly rsiy project that gives you a return of 8.4%, what is the current value of the project? A)Less tha $23,000. B)BEtween $23,000 and $23,500 C)Between $23,500 and $24,000 D)Between $24,000 and $24,500 D)Greater than $24,500
Perform a financial analysis for a project. Assume that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $300,000 in Year 1 and $ 75,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $110,000 each year in Years 2, 3, and 4. Use a 6 percent discount rate, and round the discount factors to two decimal places. What is the Return on Investment (ROI)? (Keep your answer in two decimal places. e.g. 46.59. Do not enter % symbol.)
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Vencap Enterprises is evaluating an investment opportunity that will require contributions of $30,900 in Year 1 and $10,900 in Year 2. Returns of $29,000, $64,500, and $44,500 are expected in the three following years. a. What price should Vencap offer for the investment opportunity if it requires a 9.9% return on investment? (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) Price %24
CircleCo is considering the purchase of new construction crane, which would cost approximately $400,000 initially. produce cash flows of $4,500 per month for the next 8 years and has a resale value of $50,000 in assets at the end of 8 years. i With an interest rate of 4.5% what is this project's net present value? li) What is this project's Internal Rate of Return? ili) How do you use the IRR to determine if a project should be accepted?

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