monster beverage is considering purchasing a new canon machine this machine cost $3,500,000 up front. required return =10.7%. cash FLow year 0 -3,500,000 first year $1 million dollars second year 1,200,000 3.1,200,000 year three 1,300,000 4. 900,000 fifth year 1,000,000 . what is the value of year 3 cash flow discounted to the present?
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monster beverage is considering purchasing a new canon machine this machine cost $3,500,000 up front. required return =10.7%. cash FLow year 0 -3,500,000 first year $1 million dollars second year 1,200,000 3.1,200,000 year three 1,300,000 4. 900,000 fifth year 1,000,000 . what is the value of year 3 cash flow discounted to the present?
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- Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?A bookstore is planning to purchase an automated inventory/remote marketing system, which includes an upgrade to a more sophisticated cash register system. The package has an initial investment cost of $360,000. It is expected to generate $144,000 of annual cash flows, reduce costs and provide incremental cash revenues of $326,000, and incur incremental cash expenses of $200,000 annually. What is the payback period and accounting rate of return (ARR)?Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in year two, $2,000 in year three. $2,500 in year four, and $2,000 in year five. What is the NPV using 8% as the discount rate? For further instructions on net present value in Excel, see Appendix C.
- Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.3. A company is planning to purchase a new machine to expand its production and to start anew project. There are two brand available A and B in the market. Both the machines are costing RO 70,000. The following cash inflows are expected to come for both the machines. Advise which machines will be better if the discounting rate is 10% for expansion of this project. Years Machine A Machine B A B 15,000 17,600 20,200 22,000 18,500 20,000 21,500 23,000 14,800 10,600 11,700 11,000 6.
- Ventura Driving School is considering purchasing new autos costing $220,000. The company's management has estimated that the autos will generate cash inflows as follows: Year 1 $ 85,000 Year 2 $ 100,000 Year 3 $ 70,000 Year 4 $ 55,000 Considering the residual value is zero, calculate the payback period. Round to one decimal place. The payback in years is GELDThe Pan American Bottling Company is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $57,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 4 5 Cash Flow $ 22,000 24,000 26,000 32,000 14,000 a. If the cost of capital is 11 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Net present value b. What is the internal rate of return? Note: Do not round intermediate calculations, Enter your answer as a percent rounded to 2 decimal places. Intemal rate of return %The Pan American Bottling Company is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $69,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 4 5 Cash Flow $ 29,000 29,000 29,000 34,000 20,000 a. If the cost of capital is 13 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Net present value b. What is the internal rate of return? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Internal rate of return c. Should the project be accepted? O Yes O No %
- The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $60,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $ 23,000 2 26,000 3 29,000 4 15,000 5 8,000 a. If the cost of capital is 13 percent, what is the net present value of selecting a new machine? b. What is the internal rate of return?Current Attempt in Progress Bramble Corp. is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $35,500; Year 2, $39,500; and Year 3, $49,000. Bramble requires a minimum rate of return of 10%. What is the maximum price Bramble should pay for this equipment? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 5.27541. Round answer to 2 decimal places, e.g. 25.25.) Maximum price $Blossom Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project? Year Cash Flow 0 -$2,970,000 1 787,610 2 869,600 3 1,030,500 4 1,125,360 5 1,354,000 What is the NPV of this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.) The NPV is $enter The NPV in dollars rounded to 0 decimal places Should management go ahead with the project? The firm should select an option rejectaccept the project.