Need help solving this. Can
you please show how you got the answer? The answer is the one on
the bottom I just need to know how to get there.
Homework Answers
Solution:
In order to make investment attractive required present value of salvage value = $1,400,000
Desired salvage value in 20 years = $1,400,000 / PV factor at 8% for 20th period
= $1,400,000 / 0.2145
= $6,526,807
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Need help solving this. Can
you please show how you got the answer? The answer is...
Need help on how to get to the answer. Answer is given. cost of equipment (10,000)...
Need
help on how to get to the answer. Answer is given.
cost of equipment (10,000) outflow 1. Ames Co. is planning an investment project of a five-year contract to provide component parts for a large manufacturer. The project has the following requirements and annual cash flows. The project requires an initial investment of $10,000 for the special equipment. • The project also requires $5,000 of working capital. The working capital will be released at the end of the project's...
need to see how you got to the answer must use combination approach. 4) 15 points...
need to see how you got to the answer
must use combination approach.
4) 15 points Green Submarine has a project with the following cash flows: Year Cash Flows -18,250 7,480 13,850 8,270 -3,450 The discount rate is 8%, and the reinvestment rate is 10%. What is the MIRR for this project using the combination approach?
Please Answer these Question in Box and show and you got the numbers. 16. Over the...
Please Answer these Question in Box and show and you got the
numbers.
16. Over the River Manufacturing purchased a machine for $394,000 with an expected useful life of 5 years and expected salvage value of $24,000. Over the River anticipates a yearly after-tax income of $53,000, earned evenly throughout the year. What is the accounting rate of return on this machine? 17. Puddle Jumper Productions is considering a 4-year project, planning to invest $56,000 now and forecasting cash flows...
A breakdown of how you got to your answers (like if excel or a calculator is...
A breakdown of how you got to
your answers (like if excel or a calculator is used) is
appreciated!
Eulis Co. has identified an investment project with the following cash flows. Year AwNP Cash Flow $1,150 1,030 1,520 1,880 If the discount rate is 11 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $0 What is the present value at 16...
Could you give me the details of solving this：Given the following information and assuming a CCA...
Could you give me the details of solving this：Given the following information and assuming a CCA rate of 20%, what is the NPV of this project? Initial investment = $400,000; life = five years; before-tax cost savings = $150,000 per year; salvage value = $30,000 in year 5; tax rate = 34%; discount rate = 14%. A. -$149,841 B. -$33,117 C. $0 D. $19,800 E. $27,428
can someone please explain thoroughly how they got 12.39% ? how do you calculate what the indifferent discount rate is?...
can
someone please explain thoroughly how they got 12.39% ? how do you
calculate what the indifferent discount rate is? I rate! :)
4. A project that provides annual cash flows of $1,000 for eight years costs $4,900 today. Is this a good project if the required return is 8%? What if it's 24%? At what discount rate would you be indifferent between accepting the project and rejecting it? 0 =-$4,900 + $1,000 [1 - {1/(1+.IRR)}/IRR); IRR = 12.39% ;...
please answer questions 2-7. 2) You run a construction firm. You have just won a contract...
please answer questions 2-7.
2) You run a construction firm. You have just won a contract to build a government office building. Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon the building's completion. Assume the investors' expected rate of return is 10%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today?...
I need help solving this problem...can you show me how to create the depreciation table? For...
I need help solving this problem...can you show me how to create the depreciation table? For a given building that is currently in the design phase, a conventional HVAC system would cost $225,000 to purchase and install and have average annual operating costs of $22,000 per year over the building’s 30-year life, assuming no price increases in natural gas and electricity. The system requires major maintenance at the end of Year 10 and Year 20 at a cost of $15,000 each...
need to see how you got to the answer 6) 25 Points You are considering a...
need to see how you got to the answer
6) 25 Points You are considering a new prod uct launch, The project will cost $982.000, have a four-year life, and have no salvage value. The depreciation is straight-line to zero. Sales are projected at 300 units per year. The pnce per unit is $19,200, the variable cost per unit is $15.700. and fixed costs are $328,000 per year. The required return on the project is 12 %, and the relevant...
Can someone please help me with this question. Please show your work and explain how you...
Can someone please help me with this question. Please show your work and explain how you got your answer, thanks! Kris Reeves is evaluating projects using the IRR rule and a required return of 12%. Should she accept the following project given estimated cash flows of $75,000 for the first two years and $55,000 for the next two years? The initial investment is $165,000. Reject, IRR of 22.69% Accept, IRR of 20.69% Indifferent, IRR same as required return Accept, IRR...
Need
help on how to get to the answer. Answer is given.
cost of equipment (10,000) outflow 1. Ames Co. is planning an investment project of a five-year contract to provide component parts for a large manufacturer. The project has the following requirements and annual cash flows. The project requires an initial investment of $10,000 for the special equipment. • The project also requires $5,000 of working capital. The working capital will be released at the end of the project's...
need to see how you got to the answer
must use combination approach.
4) 15 points Green Submarine has a project with the following cash flows: Year Cash Flows -18,250 7,480 13,850 8,270 -3,450 The discount rate is 8%, and the reinvestment rate is 10%. What is the MIRR for this project using the combination approach?
Please Answer these Question in Box and show and you got the
numbers.
16. Over the River Manufacturing purchased a machine for $394,000 with an expected useful life of 5 years and expected salvage value of $24,000. Over the River anticipates a yearly after-tax income of $53,000, earned evenly throughout the year. What is the accounting rate of return on this machine? 17. Puddle Jumper Productions is considering a 4-year project, planning to invest $56,000 now and forecasting cash flows...
A breakdown of how you got to
your answers (like if excel or a calculator is used) is
appreciated!
Eulis Co. has identified an investment project with the following cash flows. Year AwNP Cash Flow $1,150 1,030 1,520 1,880 If the discount rate is 11 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $0 What is the present value at 16...
can
someone please explain thoroughly how they got 12.39% ? how do you
calculate what the indifferent discount rate is? I rate! :)
4. A project that provides annual cash flows of $1,000 for eight years costs $4,900 today. Is this a good project if the required return is 8%? What if it's 24%? At what discount rate would you be indifferent between accepting the project and rejecting it? 0 =-$4,900 + $1,000 [1 - {1/(1+.IRR)}/IRR); IRR = 12.39% ;...
please answer questions 2-7.
2) You run a construction firm. You have just won a contract to build a government office building. Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon the building's completion. Assume the investors' expected rate of return is 10%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today?...
need to see how you got to the answer
6) 25 Points You are considering a new prod uct launch, The project will cost $982.000, have a four-year life, and have no salvage value. The depreciation is straight-line to zero. Sales are projected at 300 units per year. The pnce per unit is $19,200, the variable cost per unit is $15.700. and fixed costs are $328,000 per year. The required return on the project is 12 %, and the relevant...
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