The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%.The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data indetermining the acceptability of this investment:Year12345Income fromOperations$18,75018,75018,75018,75018,750Net CashFlow$93,75093,75093,75093,75093,750The present value index for this investment isOa. 0.95Ob. 1.00Oc. 1.05Od. 1.25

Present Value Index (PVI) is the ratio of the net present value to the initial expenditure required…

Answered: The present value index for this…

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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Consider the return of investment as given in the following table: Year 2016 2017 2018 2019 2020 Amount (RM) 5000 5175 5394.94 5705.15 6047.46
Please no written by hand solutions Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $ 32,000 March 1 – March 30 wages March 30 4,500 March 1 – March 30 rent March 30 2,000 Stock issuance costs April 1 20,000 April 1 – May 30 wages May 30 12,000 a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Start up cost? and orginazaion expendentures? b. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1?
If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on asset? Multiple Choice 0.1142 0.7269 0.0830 0.0642
Calculate the change in Working Capital given the following: 2021 2020 A/R 240 A/P 185 A/R 255 A/P 165 INV 210 Int/P 145 INV 225 Int/P 155 W/C 2021 W/C 2020 Change in Working Capital =
For each of the investments below, calculate the rate of return earned over the period. Investment ABCDE Cash Flow During Beginning-of-Period End-of-Period Value Period Value - $400 13,000 4,000 60 1,700 $1,700 140,000 60,000 800 14,500 $800 117,000 46,000 400 12,600
15. Consider the following possible returns over the next year on an asset.Return Probability–£40 0.5£40 0.5What is the standard deviation of return of the asset.
Calculate the Payback period (PBP) and Profitability Index (PI) of the investment and state the Pro’s and Cons of this method The annual incremental profits/ (losses) relating to the investment are estimated as follows: Years CF’s (000) Year 0 -175,000 Year 1 K11,000 Year 2 K3,000 Year 3 K34,000 Year 4 K47,000 Year 5 K8,000 Investment at the start of the project would be K175, 000,000.the investment sum assuming nil disposal value after five years, would be written off using the equal instalment method. The depreciation has been included in the profit estimates above, which should be assumed to arise at each year end. Assume the cost of Capital is 12% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 D.f 1.00 0.893 0.797 0.712 0.636 0.567
How did they come up with the value 619,417 for PV of Benefits for the year 2015 using the formula that I have attached?

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The present value index for this investment is Oa. 0.95 Ob. 1.00 Oc. 1.05 Od. 1.25