Net Present Value Method, Present Value Index, and AnalysisFirst United Bank Inc. is evaluating three capital investment projects using the net present value method. Relevant data related to the projects are summarized as follows:BranchComputerATMOfficeSystemKioskExpansionUpgradeExpansionAmount to be invested$863,421$519,486$311,214Annual net cash flows:Year 1358,000243,000165,000Year 2333,000219,000114,000Year 3304,000194,00083,000Present Value of $1 at Compound InterestYear6%10%12%15%20%0.9430.9090.8930.8700.83320.8900.8260.7970.7560.69430.8400.7510.7120.6580.57940.7920.6830.6360.5720.48250.7470.6210.5670.4970.4020.7050.5640.5070.4320.33570.6650.5130.4520.3760.27980.6270.4670.4040.3270.2330.5920.4240.3610.2840.194100.5580.3860.3220.2470.162 100.5580.3860.3220.2470.162Required:1. Assuming that the desired rate of return is 6%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net presentvalue. If required, round to the nearest dollar.Branch OfficeComputer SystemATM KioskExpansionUpgradeExpansionPresent value of net cash flow%24$totalAmount to be invested$$Net present value$2. Determinepresent value index for each proposal. If required, round your answers to two decimal places.Present Value IndexBranch Office ExpansionComputer System UpgradeInstall Internet Bill-Pay3. Which proposal offers the largest amount of present value per dollar of investment?

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

value. If required, round to the nearest dollar. Branch Office Computer System ATM Kiosk Expansion Upgrade Expansion Present value of net cash flow total Amount to be invested %$4 $ Net present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. Present Value Index Branch Office Expansion Computer System Upgrade Install Internet Bill-Pay

value. If required, round to the nearest dollar. Branch Office Computer System ATM Kiosk Expansion Upgrade Expansion Present value of net cash flow total Amount to be invested %$4 $ Net present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. Present Value Index Branch Office Expansion Computer System Upgrade Install Internet Bill-Pay

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Time Value of Money Practice Scenarios Please note that some scenarios may have answers that are either correct or incorrect based on calculations, while others will require you to answer based on your own situation. When responding to those questions, explain your answers using what you currently understand about financial concepts. You have a chance to sell an antique today for $1,000. You believe you will be able to sell the time in three years for $1,200. Should you sell it today or wait? Use March 2023’s inflation rate (5%) It is with deep regret that I inform you that your rich uncle just passed away. His money is tied up in an investment. However, we can sell the investment and give you $15,000 today, or you will receive $20,000 in 5 years when the investment matures. Which would you choose? Use March 2023’s inflation rate (5%) You are investing in a retirement account and plan to deposit $5,000 per year into the account for the next 20 years, starting from…
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
How much would you invest today in order to receive $30,000 in each of the following? (for further instructions on present value in Excel, see the Suggested Resources in the textbook: https://cnx.org/contents/kg0cimBs@14.13:bDQCmuJO@6/Suggested-Resources) a. 10 years at 9% b. 8 years at 12% c. 14 years at 15% d. 19 years at 18%
I need the cash flow brawn it Two receipts of $1,000 each are .1 desired at the end of years 3 and 4. Given that interest rates are 8%, 8.5 %, 9% and 10% for years 1, 2, 3 and 4 respectively, determine the equal payment amount made at the end of years 1, 2 and 3 that is equivalent to those two receipts. Sketch the appropriate cash flow and outline your calculations clearly. Adding an excel sheet that supports your calculations is advantageous
Please document any AJEs you do here. Show the calcs / reasoning and then input them into the next tab.
Scenario Sinking funds are used to provide money to pay off a loan in one lump sum or to accumulate money to build new factories, buy equipment, and so on. The payment needed at the end of each period to accumulate a fixed amount in a sinking fund at a specific future date is found as follows. Answer the following question and explain your steps toward the solution: A business needs $450,000 in five years. How much should be deposited each quarter in a sinking fund that earns 9% compounded quarterly to have this amount in five years?
Calculate the continuation value of KMS using the following table, and assuming an EBITDA multiple of 8.5. (Click on the following icon in order to copy the contents of the table below into a spreadsheet.) -2019 $16,476 2020 $18,116 The continuation value is $ 2021 $19,875 2022 $21,792 thousand. (Round to the nearest integer.) 2023 $23,882 EBITDA (000) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. 2024 $26,162
in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working!!!!!!!
As of Decermber 31, 2020, the Russell Corporation has 10,000 shares of 10% preferred stock issued and outstanding with a total par value of $250,000. In addition, as of this date, Russell has 75,000 shares of common stock issued and outstanding with a total par value of $750,000. Dividends for 2018 and 2019 have not been paid. As of December 31, 2020, the Russell Corporation declared total cash dividends of $290,000 to be paid to both the preferred stockholders and the common stockholders. Required: How much cash will be distributed to both the preferred stockholders and the common stockholders, respectively, on December 31, 2020, under each of the following independent situations? a. The preferred stock is noncumulative and nonparticipating. Preferred stockholders Common stockholders b. The preferred stock is cumulative and nonparticipating. Preferred stockholders Common stockholders c. The preferred stock is cumulative and fully participating. Preferred stockholders Common…
not use ai please
Use the TVM Solver to answer the following questions. Write each known variable's value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable's value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Round to three decimals or by context. 1. Thomas plans to invest $3,400 into a money market account with a 6% annual interest rate compounded weekly. How much will be in the account after 9 years? Variable Value N = 1% = PV = PMT= FV = PY = CY = What is the Missing Variable Unit? Write a Context Sentence:
Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Product A Option B, Product B $185,000 $155,000 190,000 185,000 65,000 55,000 20,000 65,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank years Option B, Product B fill in the blank years