Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 7% return from its investments (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Net cash flows in: Year 1 Year 2 Year 3 Project X1 5 (116,000) Required A 43,000 53,500 78,500 a. Compute each project's net present value. b. Compute each project's profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index? Project X2 $ (192,000) Complete this question by entering your answers in the tabs below. Required B Required C 87,000 77,000 67,000 Present Value of 1 at 7% Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Flows Present Value of Net Cash Flows

Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 7% return from its investments (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Net cash flows in: Year 1 Year 2 Year 3 Project X1 5 (116,000) Required A 43,000 53,500 78,500 a. Compute each project's net present value. b. Compute each project's profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index? Project X2 $ (192,000) Complete this question by entering your answers in the tabs below. Required B Required C 87,000 77,000 67,000 Present Value of 1 at 7% Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Flows Present Value of Net Cash Flows

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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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments. Project X1 Project X2 Initial investment $ (114,000) $ (188,000) Net cash flows in: Year 1 42,000 85,500 Year 2 52,500 75,500 Year 3 77,500 65,500 Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. Note: Round your answers to 2 decimal places.
Redmond Company is considering investing in one of the following two projects: (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Year 1 2 3 4 Total Annual Cash Inflows. Project A Project B $ 2,340 $4,340 11 3, 340 2, 340 3, 340 2,340 1,340 1,340 $ 10, 360 $ 10, 360 Required: a. Which project is more desirable strictly in terms of cash inflows? b. Compute the present value of each project's cash inflows assuming the company's required rate of return is 12%. c. What is the maximum amount Redmond should be willing to pay for each project? d. Suppose each project costs $8,030. Which project(s) should be accepted? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Which project is more desirable strictly in terms of cash inflows? More desirable strictly in terms of cash inflows
Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments. Initial investment Net cash flows in: Year 1 Year 2 Year 3 Project X1 Project X2 IRR 21.00 % 12.00 % Project X1 $ (90,000) Yes Yes 30,000 40,500 65,500 Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. Note: Round your answers to 2 decimal places. Acceptable? Project X2 $ (140,000) 67,500 57,500 47,500
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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 Initial investment $ (100,000) $ (160,000) Net cash flows in: Year 1 35,000 75,000 Year 2 45,500 65,000 Year 3 70,500 55,000 a. Compute each project’s net present value.b. Compute each project’s profitability index.c. If the company can choose only one project, which should it choose on the basis of profitability index?
Gonzalez Company is considering two new projects with the following net cash flows. The company’s required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Year Net Cash Flows Project 1 Project 2 Initial investment $(46,000) $(74,000) 1. 11,500 35,000 2. 25,900 20,000 3. 21,500 25,000 Compute payback period for each project. Based on payback period, which project is preferred? Compute net present value for each project. Based on net present value, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute payback period for each project. Based on payback period, which project is preferred?Note: Cumulative net cash outflows must be entered with a minus sign. Do not round your intermediate calculations. Round your Payback Period answer to 2 decimal places.…
Required Question .1 please without plagiarism
Given the data in the following table, what is the IRR of Project B?
Jiminez Company has two Investment opportunitles. Both Investments cost $5,700 and will provide the following net cash flows: Year Investment A Investment B $3,350 $3,350 3,350 4,420 3 3,350 2,350 4 3,350 1,140 What Is the total present value of Investment A's cash flows assuming an 9% minimum rate of return? (PV of $1 and PVA of $1) (Use approprlate factor(s) from the tables provlded. Do not round Intermedlate calculetions. Round your answer to the nearest doillar.) Multiple Choice $11,830. $5.153. $9.416. $3.350. Prey Nest > $51 AM
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. Project A Project B Initial investment $ (187,325 ) $ (156,960 ) Expected net cash flows in: Year 1 55,000 35,000 Year 2 49,000 48,000 Year 3 79,295 55,000 Year 4 95,400 66,000 Year 5 55,000 27,000 a. For each alternative project compute the net present value.b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose?
Information for two alternative projects involving machinery investments follows: Initial investment Project 1 $ (123,000) Project 2 $ (93,000) Salvage value 0 13,000 Annual income 14,145 12,720 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute accounting rate of return for each project. Project 1 Project 2 Accounting Rate of Return Denominator: Numerator: 1 = Accounting rate of return 0 0