gnment (II)SavedFox Co. has identified an investment project with the following cash flows.YearCash Flow$1,2901,2401,5902.31,950a. If the discount rate is 9 percent, what is the present value of these cash flows? (Donot round intermediate calculations and round your answer to 2 decimal places,e.g., 32.16.)b. What is the present value at 17 percent? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)c. What is the present value at 23 percent? (Do not round intermediate calculationsand round your answer to 2 decimal places, e.g., 32.16.)a.Present value at 9 percentb.Present value at 17 percentC.Present value at 23 percent< Prev4 of 12Next >re to search

Present value is the current value of future payment at a given rate of return. Given: Year 1 cash…

Answered: Fox Co. has identified an investment…

Fox Co. has identified an investment project with the following cash flows. Year Cash Flow $1,290 1,240 1,590 1,950 1234

Essentials Of Investments

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

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Net Present Value Method, Present Value Index, and Analysis First United Bank Inc. is evaluating three capital investment projects using the net present value method. Relevant data related to the projects are summarized as follows: BranchOfficeExpansion ComputerSystemUpgrade ATMKioskExpansion Amount to be invested $787,317 $584,976 $298,035 Annual net cash flows: Year 1 391,000 278,000 164,000 Year 2 364,000 250,000 113,000 Year 3 332,000 222,000 82,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Assuming that the desired rate of return is 10%,…
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
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The followings are cash flows of two mutually exclusive projects: Projects I and II. Project I: Year 0: -200,000, Year 1: 50,000, Year 2: 100,000, Year 3: 150,000, Year 4: 40,000 Project II: Year 0: -100,000, Year 1: 40,000, Year 2: 90,000, Year 3: 30,000, Year 4: 60,000 The cost of capital for the company is the same as what you have estimated in the previous question (use a round number, round to the closet integer). Which project should the company select based on the following criteria? Cost of Capital = 10.9% a. Payback period (The critical payback period is 2.5 years) Payback(Project 1)= Payback(Project 2)= Which one should you choose? (Better) b. Net present value NPV(Project 1)= NPV(Project 2)= Which one should you choose? (Better) c. Internal Rate of Return IRR(Project 1)= IRR(Project 2)= Which one should you choose? (Better) d. Profitability Index PI(Project 1)= PI(Project 2)= Which one should you choose? (Better)
Please help me with show all calculation thanku
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