Question Six: Two alternatives A and B are evaluated to select the most beneficial one. The details of them are shown in Figure (3). Figure (3) Alternatives Investments Useful life (years) Annual disbursements Annual revenues Salvage values Present Worth A B $60,000 $75,000 10 5 $25,000 $35,000 $45,000 $60,000 $5,000 $10,000 - $42,847 - $20,625
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Q: post-back profitability inde
A: Pay back period refers to a period taken by an investment to cover the initial outlay.
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- 341,000 Fair value of plan assets, Jan. 1 Contributions to the retirement fund during the Benefits paid to retirees Actuarial loss 32,000 89,000 year 50,000 335,000 Fair value of plan assets, Dec. 31 How much is the return on plan assets during the year? a. 51,000 b. 81,000 с. 101,000 d. 1,000Refer to the pr the previous page. What is the present value today of $4,000 to be received 6 years from today? a. $4,000 × 0.926 X 6 b. $4,000 × 0.794 X 2 c. $4,000 X 0.681 X 0.926 d. cannot be determined from the informa- tion givenplease answer correct this time
- Bruin, Incorporated, has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (6) -$ 28,000 -$ 28,000 3,900 9,300 Year 0 1 2 3 4 Project A Project B a-1 What is the IRR for each of these projects? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) AN 13,400 11,300 8,700 4,600 Using the IRR decision rule, which project should the company accept? Project A Project B Ⓒ Project A O Project B Is this decision necessarily correct? 14,200 15,800 O No b- If the required return is 10 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Which project will the company choose if it applies the NPV decision rule? O Project A O Project B Discount rate c. At what discount rate would the company be Indifferent between these two projects? (Do not round Intermediate calculations and enter your answer as a…Subject:| Internal Rate of Return Method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $62,818 and annual net cash flows of $14,000 for each of the eight years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 12% 1 2 3 4 5 6 7 8 9 10 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 15% 0.870 1.626 2.283 2.855 3.352 3.784 4.160 4.487 4.772 5.019 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places. b. Using the factor determined in part (a) and the present value of an annuity of $1 table above, determine the internal rate of return for the…
- Question 8.1.25 The following information relates to the sale of a piece of land in the current taxation year: Adjusted cost base of land: $275,000 Total proceeds of disposition: $500,000 In the current year, the seller received $200,000 of the proceeds of disposition in cash and a note payable for the remainder ($300,000). What is the maximum ITA40(1)(a)(iii) capital gains reserve that can be claimed by the seller in the current year. OA. $135,000 O B. $0 OC. $225,000 OD. $180,000Ranking roposals: Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B $ 60,000 $ 60,000 Initial investment Cash flow from operations Year 1 Year 2 Year 3 Disinvestment Life (years) 50,000 6,000 29,000 0 3 years 30,000 30,000 25,000 0 3 years Payback period (years): Round answers 2 decimal places. Proposal C $ 60,000 Accounting rate of return; Round answers to 4 decimal places. 60,000 • Round payback period (years) to two decimal places. • Round accounting rate of return to four decimal places. • Round net present value to the nearest whole number. • Use negative signs with your answers, when appropriate. Net present value; Round answers to neare whole number. 0 1 year (a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organization's cost of capital is 12 percent. Rate of Proposal A 2.14 13.8888…None
- ements What is the total Wealth Accumulation of the following investment assuming the available after tax reinvestment rate is 5%? IRR 10.70% O $4,690,000 O $4,821,078 O $4,848,844 $4,905.989 n 0 $ 1 S 2 $ 3 $ AS 5 $ Investment $ (3,000,000) 240,000 250,000 260,000 266,000 3,674,000Subject: acountingData Review View Acrob Page Layout P19 F G D A Using the information provided in the following table, find the value of each asset. Cash Flow End of Amount Asset Year (Php) Appropriate Required Return (%) A 250,000 18 250,000 250,000 15,000 15 0 16 0 0 1,750,000 75,000 12 425,000 100,000 14 150,000 250,000 350,000 200,000 50.000 File dy B C F Home O 1 through 1 2 3 14 5 1 through 5 6 E 1 2 3 4 5 6 Solution and Answer: 123 Insert Shot on OnePlus Powered by Triple Camera Num Ette Formulas