Need help wiith tables one and two! Campbell Modems, Inc. (CMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost ofeach opportunity are outlined in the following table. CMI has established a desired rate of return of 14 percent for these investmentopportunities. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)OpportunityInvestment termD5 years$ 7,000$21,0003 уears$ 5,900$13,7005 years$ 7,000$24,1004 yearsExpected cash inflowCost of investment$ 5,300$14,100Requireda. Compute the net present value of each investment opportunity and record your answers in the following table. The results forInvestment Opportunity A have been recorded in the table as an example.b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the followingtable. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manualcomputation yields the same net present value amounts as the financial function routines of Excel or a financial calculator.Complete this question by entering your answers in the tabs below.Required ARequired BCompute the net present value of each investment opportunity and record your answers in the following table.The results forInvestment Opportunity A have been recorded in the table as an example. (Negative amounts should indicated by minus sign.Round "Present value factor" to 6 decimal places. Round "Present value of cash flows and Net present value" to 2 decimalplaces.)OpportunityA.ВDCash inflow$5,300$7,000$5,900 $7,000Times present value factor2.913712Present value of cash flows$15,442.68Minus cost of investment(14,100.00)(21,000.00)(13,700.00)(24,100.00)Net present value1,342.68 Campbell Modems, Inc. (CMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost ofeach opportunity are outlined in the following table. CMI has established a desired rate of return of 14 percent for these investmentopportunities. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)OpportunityAВD5 years$ 7,000$21,0003 уears$ 5,900$13,7005 years$ 7,000$24,100Investment term4 years$ 5,300$14,100Expected cash inflowCost of investmentRequireda. Compute the net present value of each investment opportunity and record your answers in the following table. The results forInvestment Opportunity A have been recorded in the table as an example.b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the followingtable. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manualcomputation yields the same net present value amounts as the financial function routines of Excel or a financial calculator.Complete this question by entering your answers in the tabs below.Required ARequired BDetermine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table.The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yieldsthe same net present value amounts as the financial function routines of Excel or a financial calculator. (Negative amounts should indicatedby minus sign. Round your answers to 2 decimal places.)Show lessAOpportunityADNet present value$1,342.68Internal rate of return18.57 %%%< Required ARequired B >

In table 1, we will find 'Times present value factor' , 'Present value of cash flow' and 'Net…

Campbell Modems, Inc. (CMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. CMI has established a desired rate of return of 14 percent for these investment opportunities. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Opportunity Investment term A B D Expected cash inflow Cost of investment 4 years $ 5,300 5 years $ 7,000 3 years $ 5,900 $13,700 5 years $ 7,000 $24,100 $14,100 $21,000 Required a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each investment opportunity and record your answers in the following table.The results for Investment Opportunity A have been recorded in the table as an example. (Negative amounts should indicated by minus sign. Round "Present value factor" to 6 decimal places. Round "Present value of cash flows and Net present value" to 2 decimal places.) Opportunity A B D Cash inflow $ 5,300 $ 7,000 $ 5,900 $ 7,000 Times present value factor 2.913712 Present value of cash flows $ 15,442.68 Minus cost of investment (14,100.00) (21,000.00) (13,700.00) (24,100.00) Net present value $ 1,342.68

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