Homework Answers
Present Value = NPV + Investment
Present Value Ratio = Present Value / Investment
| Project | PV | Investment | PV Ratio | Rank |
| A | $ 74,538 | $ 68,000 | 1.1 | 3 |
| B | $ 1,01,755 | $ 75,000 | 1.4 | 1 |
| C | $ 1,95,692 | $ 1,54,000 | 1.3 | 2 |
| D | $ 1,61,794 | $ 1,72,000 | 0.9 | 5 |
| E | $ 3,50,856 | $ 3,44,000 | 1.0 | 4 |
Projects are ranked on the basis of highest PV Ratio
Since Project B has highest PV Ratio, investment will be made in Project B first
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The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the...
The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the...
The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $ (75,000) Initial investment Amount of net cash return min $(68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 $(154,000) 57,000 57,000 57,000 57,000 57,000 $(172,000) 17,200 34,400 51,600 68,800 86,000 36,000 36,000 36,000 21,000 ? $ (344,000)...
The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the...
The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) A В C D E (154,000) 57,000 57,000 (172,000) 17,200 34,400 51,600 68,800 Initial investment 0 $(68,000) 16,000 16,000 16,000 16,000 $(75,000) $(344,000) Amount of net cash return 1 105,000 105,000 2 0 3 36,000 57,000 57,000 60,000 60,000...
Required information [The following information applies to the questions displayed below.] The following capital expenditure projects...
Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $ ( 75,000) Initial investment Amount of net cash return OWNO $(68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 36,000 36,000 36,000 21,000 ? $(154,000) 57,000...
Required information [The following information applies to the questions displayed below.] The following capital expenditure projects...
Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) Initial investment Amount of net cash return $(75,000) UAWN FOOD $(68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 $(154,000) 57,000 57,000 57,000 57,000 $7,000 $ ?...
Chec 2 RequireaINTormatiON The following information applies to the questions displayed below. The following capital expenditure...
Chec 2 RequireaINTormatiON The following information applies to the questions displayed below. The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decima ls.) Part 1 of 5 Project Year(s) В C E 6.66 points $(172,000) 17,200 34,400 51,600 68,800 86,000 $ (344,000) 105,000 105,000 60,000 60,000 60,000 60,000 6,856 Initial investment...
The following capital expenditure projects have been proposed for management's consideration at Scott, Inc., for the...
The following capital
expenditure projects have been proposed for management's
consideration at Scott, Inc., for the upcoming budget year: Use
Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables
provided. Round the PV factors to 4 decimals.) Project Year(s) A B
C D E Initial investment 0 $ (63,000 ) $ (62,000 ) $ (138,000 ) $
(152,000 ) $ (304,000 ) Amount of net cash return 1 14,000 0 50,000
15,200 97,000 2 14,000 0 50,000 30,400...
The following capital expenditure projects have been proposed for management's consideration at Scott, Inc., for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) f...
The following capital expenditure projects have been proposed
for management's consideration at Scott, Inc., for the upcoming
budget year: Use Table 6-4 and Table 6-5. (Use appropriate
factor(s) from the tables provided. Round the PV factors to 4
decimals.) Project Year(s) A B C D E Initial investment 0 $ (54,000
) $ (58,000 ) $ (115,000 ) $ (116,000 ) $ (232,000 ) Amount of net
cash return 1 13,000 0 39,000 11,600 75,000 2 13,000 0 39,000
23,200...
The folowing information apples to the questions displayed below The following capital expenditure projects have been...
The folowing information apples to the questions displayed below The following capital expenditure projects have been proposed for management's consideration at Scott, Inc, for the upcoming budget year: Use Table 6-4 and Table 6-5 (Use appropriate factoris) from the tables provided, Round the PV factors to 4 Initial nvestment Amount of net cash return 0 $(64,000) (78.000) (156,000) $(156.000)$(312.000) 98.000 5,000 5,000 5,000 5,000 5,000 15,000 3411 105 52,000 52.000 52,000 52,000 31200 46,800 62400 78.000 56,000 56,000 56,000 56,000...
The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $ (75,000) Initial investment Amount of net cash return min $(68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 $(154,000) 57,000 57,000 57,000 57,000 57,000 $(172,000) 17,200 34,400 51,600 68,800 86,000 36,000 36,000 36,000 21,000 ? $ (344,000)...
The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) A В C D E (154,000) 57,000 57,000 (172,000) 17,200 34,400 51,600 68,800 Initial investment 0 $(68,000) 16,000 16,000 16,000 16,000 $(75,000) $(344,000) Amount of net cash return 1 105,000 105,000 2 0 3 36,000 57,000 57,000 60,000 60,000...
Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $ ( 75,000) Initial investment Amount of net cash return OWNO $(68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 36,000 36,000 36,000 21,000 ? $(154,000) 57,000...
Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) Initial investment Amount of net cash return $(75,000) UAWN FOOD $(68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 $(154,000) 57,000 57,000 57,000 57,000 $7,000 $ ?...
Chec 2 RequireaINTormatiON The following information applies to the questions displayed below. The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decima ls.) Part 1 of 5 Project Year(s) В C E 6.66 points $(172,000) 17,200 34,400 51,600 68,800 86,000 $ (344,000) 105,000 105,000 60,000 60,000 60,000 60,000 6,856 Initial investment...
The following capital
expenditure projects have been proposed for management's
consideration at Scott, Inc., for the upcoming budget year: Use
Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables
provided. Round the PV factors to 4 decimals.) Project Year(s) A B
C D E Initial investment 0 $ (63,000 ) $ (62,000 ) $ (138,000 ) $
(152,000 ) $ (304,000 ) Amount of net cash return 1 14,000 0 50,000
15,200 97,000 2 14,000 0 50,000 30,400...
The folowing information apples to the questions displayed below The following capital expenditure projects have been proposed for management's consideration at Scott, Inc, for the upcoming budget year: Use Table 6-4 and Table 6-5 (Use appropriate factoris) from the tables provided, Round the PV factors to 4 Initial nvestment Amount of net cash return 0 $(64,000) (78.000) (156,000) $(156.000)$(312.000) 98.000 5,000 5,000 5,000 5,000 5,000 15,000 3411 105 52,000 52.000 52,000 52,000 31200 46,800 62400 78.000 56,000 56,000 56,000 56,000...
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