DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project Select one: a. 4.00 years b. 2.91 years c. 3.09 years d. 2.50 years

The DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $300,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project? a.2.50 years b.4.00 years c.3.09 years d.2.67 years

DYI Construction Co. is considering a new inventory system that will cost $650,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the net present value of this project? a.$104,089 b.$204,089 c.$87,417 d.$96,320

DYI Construction Co. is considering a new inventory system that will cost $650,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 9%. What is the internal rate of return of this project? a.10.87% b.11.57% c.15.13% d.23.85%

A firm is considering a new inventory system that will cost $120,000.  The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4.  The firm’s required rate of return is 9%.  What is the payback period of this project?     1.95 years     2.46 years     2.99 years     3.10 years Based on the information from Question 47.  What is the net present value (NPV) of the project?     $28,830.29     $30,929.26     $36,931.43     $39,905.28 Based on the information from Question 47, what is the internal rate of return (IRR) of this project?     14.03%     17.56%     19.26%     21.78% Based on the information from Question 47, what is the profitability index (PI) of this project?     0.87     1.11     1.31     1.83.

Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $819,822, $863,275, $937,250, $1,018,112, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? Round to two decimal places.

ABC Company is evaluating a project that can generate the following revenues: P4,600 in year one, P5,200 in year two, P5,900 in year three and lastly P5,700 in year four. The company has a required rate of return for 12% compounded semi-annually. 1.What will be the future values of these cash flows at the end of year four?  2.What will be the future value of 5700 at the end of 4 years?  3.What will be the future value of 4600 at the end of 4 years?  4.What will be the future value of 5200 at the end of 4 years?  5.What will be the future value of 5900 at the end of 4 years?

Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)    Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows   $ 60,000     $ 40,000     $ 70,000     $ 125,000     $ 35,000     $ 330,000      a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.)      b. Should Beyer accept the investment?   Yes No

Development costs of a new product are estimated to be $100,000 per year for five years.  Annual profits from the sale of the product, estimated to be $75,000, will begin in the fourth year and each year they will increase by ($10,000 + $10,000*4) through year 15.  Compute the present value using an interest rate of 10%.  Draw a cashflow diagram.

Blossom Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $8,467,824. It will result in additional cash flows of $2,312,200 for the next eight years. The discount rate is 11.83 percent. What is the Payback period, NPV, and IRR?