Then, find the NPV of the new investment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2decimal places eg. 5,125.36. Enter negative amounts using either a negative sign preceding the number, e.g. -5,125.36 or parentheses, e.g.(5,125,36).)Click here to view the factor tableNPV $2152.08 Tamarisk Corp. is planning to replace an old asset with new equipment that will operate more efficiently. The following amounts maybe relevant to this analysis.Cost of old assetBook value of old assetSelling price of old assetPurchase price of new replacement assetEstimated salvage value of new assetEstimated useful life of new assetEstimated annual net operating cash inflowsDiscount rateTax rate$12,000$2,000$2,000$18,800$2,2005$2,70011%20%years/year for 5 years

NPV means Net Present value.It is a capital budgeting technique used for making investment…

Then, find the NPV of the new investment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places eg. 5,125.36. Enter negative amounts using either a negative sign preceding the number, e.g.-5,125,36 or parentheses, e.g. (5,125,36).) Click here to view the factor table. NPV 2152.08

Then, find the NPV of the new investment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places eg. 5,125.36. Enter negative amounts using either a negative sign preceding the number, e.g.-5,125,36 or parentheses, e.g. (5,125,36).) Click here to view the factor table. NPV 2152.08

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Then, find the NPV of the new investment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2
decimal places eg. 5,125.36. Enter negative amounts using either a negative sign preceding the number, e.g. -5,125.36 or parentheses, e.g.
(5,125,36).)
Click here to view the factor table
NPV $
2152.08

Tamarisk Corp. is planning to replace an old asset with new equipment that will operate more efficiently. The following amounts may
be relevant to this analysis.
Cost of old asset
Book value of old asset
Selling price of old asset
Purchase price of new replacement asset
Estimated salvage value of new asset
Estimated useful life of new asset
Estimated annual net operating cash inflows
Discount rate
Tax rate
$12,000
$2,000
$2,000
$18,800
$2,200
5
$2,700
11%
20%
years
/year for 5 years

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Step 1: Concept.

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Step 2: Computation of present value of tax savings on depreciation .

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Step 3: Computation of present value of cash inflows.

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Step 4: Computation of present value of net proceeds on sale of new asset.

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Step 5: Computation of NPV.

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es Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.7 percent and the standard deviation was 18.3 percent. a. What is the probability that your return on this asset will be less than -4.1 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter…
For each of the following situations, Identify (1) the case as either (a) a present or a future value and (b) a single amount or an annulty. (2) the table you would use in your computations (but do not solve the problem), and (3) the Interest rate and time periods you would use. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factors" to 4 decimal places. a. You need to accumulate $10,100 for a trip you wish to take in four years. You are able to earn 10% compounded semiannually on your savings. You plan to make only one deposit and let the money accumulate for four years. How would you determine the amount of the one-time deposit? b. Assume the same facts as in part (a) except that you will make semiannual deposits to your savings account. What is the required amount of each semiannual deposit? 1. You want to retire after working 40 years with savings in excess of $1,020,000. You expect to save $4,080 a year for 40…
Assets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity New Chip Corp Balance Sheet at 12/31/22 ($ in Millions) 31 45 64 215 28 19 402 53 19 179 23 128 402
Suppose S(NZD/USD) = 1.5000 and S(MYR/USD) = 4.4000. What is the cross rate S(MYR/NZD)? Choose the closest answer to your own calculations. a. 2.9333 b. 0.3409 c. 6.6000 d. 0.1515
SOLVE STEP BY STEP IN DIGITAL FORMAT 2. Calculate the amount of the previous problem, if the investment is compounded quarterly. Formulas Compound interest Annual compounding M = C(1+i)n 1 = Cni M = C(1 + i) Fractional capitalization M=C{1+4)*
Subject: acounting
Subject: accounting
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