TopCap Company is evaluating the purchase of another sewing machine that will beused to manufacture sport caps. The invoice price of the machine is $123,500. Inaddition, delivery and installation costs will total $5,500. The machine has thecapacity to produce 12,000 dozen caps per year. Sales are forecast to increasegradually, and production volumes for each of the five years of the machine's life areexpected to be as follows: Use Table 6-4.Note: Use appropriate factor(s) from the tables provided. Round the PV factors to4 decimals.202220232024202520263,600 dozen5,600 dozen8,500 dozen11,300 dozen12,000 dozenThe caps have a contribution margin of $9.00 per dozen. Fixed costs associated withthe additional production (other than depreciation expense) will be negligible.Salvage value and the investment in working capital should be ignored. TopCapCompany's cost of capital for this capacity expansion has been set at 10%.Required:a. Calculate the net present value of the proposed investment in the new sewingmachine.b. Calculate the present value ratio of the investment.c. What is the internal rate of return of this investment relative to the cost of capital?d. Calculate the payback period of the investment.Complete this question by entering your answers in the tabs below.Required ARequired B Required C Required DCalculate the net present value of the proposed investment in the new sewing machine.Note: Negative amounts should be indicated by a minus sign. Round intermediate calculaNet present value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present…

Answered: Required: a. Calculate the net present…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Two investments have the following pattern of expected returns: Investnent A Year 1 $5, 100 Year 2 $10,100 Year 3 Year 4 Year 4 (Sale) $121,000 STCF $12,100 $15,100 Investment B Year 1 $2,100 Year 2 $4,100 Year 3 $1,100 Year 4 Year 4 (Sale) $181,000 BTCF $5,100 Investment A requires an outlay of $111,000 and Investment B requires an outlay of $121,000. Required: a. What is the BTIRR on each investment? b. If the BTIRR were partitioned based on BTCF, and BTCF, what proportions of the BTIRR would be represented by each? c. Which investment would be preferable?
Types of Investments: As depicted by the image, choose which of the following is your investment option and explain your answer by highlighting its features and advantages:
In the initial investment of a project you must include the working capital.
REQUIRED Study the information given below and answer the following questions: 1. Calculate the Payback Period (expressed in years, months and days). 2. Calculate the Accounting Rate of Return on average investment (expressed to two decimal places). 3. Identify TWO (2) reasons why Umdloti Limited should not use the accounting rate of return to evaluate capital investments. 4. Calculate the Net Present Value. 5. Calculate the Internal Rate of Return (expressed to two decimal places) if the net cash flows are R320 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation.
Give typing answer with explanation and conclusion
Subject: acounting
Q- Explain the below elements of cash inflow: (Note: First one (a) is as example for you) a- Borrowed funds.If you finance your investment by borrowing, the borrowed funds will appear as cash inflow to the project at the time they are borrowed. From these funds, the purchase of new equipment or any other investment will be paid out. b- Operating revenues. c- Cost savings d- Salvage value. e- Working capital recovery at the end of the project.
The average accounting rate of return (AAR): is the primary methodology used in analyzing independent projects. O O O O O is the best method of financially analyzing mutually exclusive projects. is similar to the return on assets ratio. considers the time value of money. measures net income as a percentage of the sales generated by a project.
Please do not give solution in image format thanku
Please answer all as they are part of the same question
1. Fill the parts in the above table that are shaded in yellow. 2.Using the data generated in the previous question (Question 1) a. Plot the Security Market Line (SML) b. Superimpose the CAPM’s required return on the SML c.Indicate which investments will plot on, above and below the SML? d.
Pls do fast and i will rate instantly for sure Solution must be in typed form

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