Motel Corporation is analyzing a capital expenditure that will involve a cash outlay of $208,240. Estimated cash flows are expected to be $40,000 annually for 7 years. The present value factors for an annuity of $1 for 7 years at interest of 6%, 8%, 10%, and 12% are 5.582, 5.206, 4.868, and 4.564, respectively. The internal rate of return for this investment is a.10% b.12% c.8% d.6%

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A: Calculation of Net present value of the project: Answer: Net present value is $19,155.09

Q: CII, Incorporated, invests $630,000 in a project expected to earn a 12% annual rate of return. The…

A: Present Value = pv = $63,000Interest rate = r = 12%Time = t = 10

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Q: Use the NPV method to determine whether Juda Products should invest in the following​ projects:   •…

A: Solution:-1 Calculation of NPV of each​ project as follows:-

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A: Average rate of return =Average net profits/average investment×100Average net profits =Total net…

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A: The fluctuation between the estimated value of inflows and outflows of money over time is known as…

Q: The management of Amex Corp. plans to meet a future capital expenditure by depositing $25,000 into a…

A: The present value of the investment is the amount that one invest in the current period. The future…

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A: Initial Cost = i = $65,000Discount Rate = r = 12%Cash Flow per Year = c = $16,000Time = t = 8 Years

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A: Journal entry is the process of recording the business transactions in the books of accounts for the…

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A: Formulate the Problem:Objective function: Maximize…

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Q: A project has estimated to cost $54,035. and provide annual net cash flows of $12,000 for 8 years.…

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A: NET PRESENT VALUENet Present Value is one of the Important Capital Budgeting Technique. Net Present…

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A: In this question, we are required to determine the internal rate of return (IRR).

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A:

Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.