Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $135,100. Project 2 requires an initial investment of $102,600. Assume the company requires a 10% rate of 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.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Years 1-7 Project 1 Net present value Years 1-5 Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Project 2 Net present value Present Value Net Cash Flows x of Annuity at 10% Net Cash Flows x Project 1 $ 110,700 Present Value of Annuity at 10% 74,100 19,300 9,120 $ 8,180 Present Value of Net Cash Flows $ Present Value of Net Cash Flows $ Project 2 $ 87,400 0 36,480 20,520 22,800 $ 7,600

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $135,100. Project 2 requires an initial investment of $102,600. Assume the company requires a 10% rate of 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.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Years 1-7 Project 1 Net present value Years 1-5 Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Project 2 Net present value Present Value Net Cash Flows x of Annuity at 10% Net Cash Flows x Project 1 $ 110,700 Present Value of Annuity at 10% 74,100 19,300 9,120 $ 8,180 Present Value of Net Cash Flows $ Present Value of Net Cash Flows $ Project 2 $ 87,400 0 36,480 20,520 22,800 $ 7,600

Name: Vaibh Information for two alternative projects involving machinery inv
Uploaded: 2024-03-20T06:33:21.000Z
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Description: Vaibh Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $135,100.Project 2 requires an initial investment of $102,600. Assume the company requires a 10% rate of return on its