What is Declan's Designs' 2020 Cash Flows from Investing Activities? Question 26 options: Decrease of $22,000 Decrease of $16,000 Increase of $16,000 Increase of $22,000
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What is Declan's Designs' 2020
Question 26 options:
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Decrease of $22,000 |
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Decrease of $16,000 |
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Increase of $16,000 |
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Increase of $22,000 |
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- Question content area top Part 1 (Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year A B C 1 $ 14,000 $ 14,000 2 14,000 3 14,000 4 14,000 5 14,000 $ 14,000 6 14,000 70,000 7 14,000 8 14,000 9 14,000 10 14,000 14,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 15 percent, find the present value of each investment. Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 15 percent?…QUESTION 6 Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow $950 1,050 1,320 1,200 1 2 3 4 If the discount rate is 10 percent, what is the present value of these cash flows? 3542.76 3578.84 3418.66 4470.00 3847.03 Click Save and Submit to save and submit. Click Save All Answers to save all answers. SEP 28 30 tv ♫ ACash Flow -$50,000 $ 7,000 $ 4,000 $9,000 $61,000 Year 1 2 3 4 What is the internal rate of return (IRR) for this investment? 17. Using the information above, wha investment using a 10% discount rate? the NPV of this
- Required information [The following information applies to the questions displayed below.] NPV IRR Gunnell Incorporated is considering two mutually exclusive 10-year investments. The initial cash outlays and expected net after-tax cash flows are shown below. Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Project 1 $(2,500,000) Project 1 200,000 200,000 235,000 280,000 325,000 450,000 500,000 600,000 700,000 900,000 Required: 1. Using Excel, calculate the NPV and IRR of each project. Assume Gunnell Incorporated uses a discount rate of 8%. (Round your NPV answer to the nearest dollar amount and your IRR answer to 2 decimal places (i.e. 0.1234 = 12.34%).) % Project 2 $(1,800,000) 400,000 375,000 350,000 350,000 325,000 200,000 185,000 170,000 160,000 130,000 Project 2 %131.4 The table represents the cash flows received from the investments at the end year. Each investment requires an initial investment of $1000. Answer the questions related to the two investment opportunities in the table below. Year 1 2 3 4 5 Investment A 225 215 250 225 205 Investment B 220 225 250 250 210 There are two approaches to evaluate this investment. Show the necessary calculations. • Assume the interest rate ot 4.33%. Use present value analysis to determine which investment you should choose? Calculating the rate of returns of the investment, which investment would you choose and why?
- Question content area top Part 1 Assuming a 1-year, money market account investment at 2.282.28 percent (APY), a 1.391.39 percent inflation rate, a 2525 percent marginal tax bracket, and a constant $50 comma 00050,000 balance, calculate the after-tax rate of return, the real rate of return, and the total monetary return. What are the implications of this result for cash management decisions? Question content area bottom Part 1 Assuming a 1-year, money market account investment at 2.282.28% (APY), a 2525% marginal tax bracket, and a constant $ 50 comma 000$50,000 balance, the after-tax rate of return is 1.711.71%. (Round to two decimal places.) Part 2 Assuming a 1-year, money market account investment at 2.282.28% (APY), a 2525% marginal tax bracket, and a constant $ 50 comma 000$50,000 balance, the after-tax monetary return is $855855. (Round to the nearest dollar.) Part 3 Given an after-tax return of 1.711.71% and an inflation rate of…. Year End Cash Flow Alternative A Alternative B 0 -1,000 600 1 600 500 2 600 -2,000 3 600 400 4 600 200 5 -2,100 -1,000 6 700 1,386 a) Solve for the Net Present Value of the alternatives A and B using interest rates from 0% upward b) what are the rate of return of the two alternatives c) If your MARR is 8 percent, which alternatives would you select? Comment briefly on your results. What are some problems associated with the ROR method?question 10 What is the present value of investment A, B, and C at an annual discount rate of 22 percent round to nearest cent?
- Question content area top Part 1 (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 16,000 $ 21,000 2 16,000 3 16,000 4 16,000 5 16,000 $ 16,000 6 16,000 63,000 7 16,000 8 16,000 9 16,000 10 16,000 21,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 19 percent, find the present value of each investment. Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 19 percent? $enter your response here (Round…Pls show proper stepsQUESTION 26 Find the IRR of an investment having initial cash outflow of $213,000. The cash flows, and corresponding dates are given below. ($213,000) 1/1/2013 $65,200 $96,000 $73,000 $55,400 A. B. 8.45% 12.32% C. 15.67% D. None of the above 5/7/2014 4/3/2015 6/8/2016 2/9/2017