Homework Answers
Solution 1:
| Computation of NPV - United bankshores Inc. | ||||||||
| Branch office expansion | Computer system upgrade | Install internet bill pay | ||||||
| Particulars | Period | PV Factor | Amount | Present Value | Amount | Present Value | Amount | Present Value |
| Cash outflows: | ||||||||
| Amount to be invested | 0 | 1 | $681,158 | $681,158 | $542,054 | $542,054 | $256,337 | $256,337 |
| Present Value of Cash outflows (A) | $681,158 | $542,054 | $256,337 | |||||
| Cash Inflows | ||||||||
| Year 1 | 1 | 0.909 | $347,000.00 | $315,423 | $243,000.00 | $220,887 | $149,000.00 | $135,441 |
| Year 2 | 2 | 0.826 | $323,000.00 | $266,798 | $219,000.00 | $180,894 | $103,000.00 | $85,078 |
| Year 3 | 3 | 0.751 | $295,000.00 | $221,545 | $194,000.00 | $145,694 | $75,000.00 | $56,325 |
| Present Value of Cash Inflows (B) | $803,766 | $547,475 | $276,844 | |||||
| Net Present Value (NPV) (B-A) | $122,608 | $5,421 | $20,507 | |||||
Solution 2:
| Computation of Present Value Index | |||
| Particulars | Branch office expansion | Computer system upgrade | Install internet bill pay |
| Present Value of Cash Inflows | $803,766.00 | $547,475.00 | $276,844.00 |
| Initial Cash Outflows | $681,158.00 | $542,054.00 | $256,337.00 |
| Present Value Index (PV of Cash Inflows / PV of cash outflows) | 1.18 | 1.01 | 1.08 |
Solution 3:
Branch office expansion offers the largest amount of present value per dollar of investment.
Add Answer to:
net
present value method, present value index, and analysis
Net Present Value Method, Present Value Index,...
Net Present Value Method, Present Value Index, and Analysis First United Bank Inc. is evaluating three...
Net Present Value Method, Present Value Index, and Analysis First 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: Branch Office Expansion Computer System Upgrade ATM Kiosk Expansion Amount to be invested $754,749 $499,898 $249,409 Annual net cash flows: Year 1 316,000 224,000 149,000 Year 2 294,000 202,000 103,000 Year 3 269,000 179,000 75,000 Present Value of $1 at Compound Interest Year 6% 10%...
Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase...
Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $106,400 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 Year 2 Year 3 Year 4 $35,000 $60,000 22,000 46,000 11,000 35,000 (1,000) 23,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.9090.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567...
eBook Calculator Print Item Net Present Value Method, Present Value Index, and Analysis for a service...
eBook Calculator Print Item Net Present Value Method, Present Value Index, and Analysis for a service company Continental Rallroad Company is evaluating three capital Investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Maintenance Ramp Computer Equipment Facilities Network Amount to be invested $804,847 $463,438 $242,702 Annual net cash flows: Year 1 392,000 263,000 176,000 Year 2 365,000 237,000 121,000 Year 3 333,000 210,000 88,000 Year 1 Present Value of...
Net Present Value Method, Present Value Index, and Analysis Donahue Industries Inc. wishes to evaluate three...
Net Present Value Method, Present Value Index, and Analysis Donahue Industries Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Product Line Expansion Distribution Facilities Computer Network Amount to be invested $733,787 $514,437 $260,321 Annual net cash flows: Year 1 365,000 270,000 150,000 Year 2 339,000 243,000 103,000 Year 3 310,000 216,000 75,000 Present Value of $1 at Compound Interest Year 6% 10% 12%...
Continental rule company is evaluating three capital investment proposals by using the net present value method. Releva...
Continental rule company is evaluating three capital investment
proposals by using the net present value method. Relevant data
related to the proposals are summarized as follows :
Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net pre Ramp Computer Maintenance Facilities Network Equipment $158,484 Amount to be invested $335,748 $528,517 Annual net cash flows: 103,000 250,000 173,000 Year 1 71,000 233,000 156,000 Year...
United Bankshores, Inc. wishes to evaluate three capital investment proposals by using the net present value...
United Bankshores, Inc. wishes to evaluate three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Branch Computer Install Office System Internet Expansion Upgrade Bill-Pay Amount to be invested $579,351 $408,596 $203,492 Annual net cash flows: Year 1 Year 2 261,000 243,000 222,000 191,000 172,000 153,000 117,000 81,000 59,000 Year 3 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833...
Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of...
Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Net Cash Tracking Technology Income from Net Cash Operations Flow Year Flow $326,000 275,000 Income from Operations $65,100 65,100 65,100 65,100 65,100 $325,500 194,000 $204,000 204,000 204,000 204,000 204,000 $1,020,000 $137,000 104,000 52,000 23,000 9,500 9,500 $325,500 133,000...
Chapter 11-Homework eBook Show Me How Calculator Print Item Net Present Value Method The following data...
Chapter 11-Homework eBook Show Me How Calculator Print Item Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $110,300 of equipment, having a four-year useful life: Net Income Net Cash Flow $37,000 $62,000 Year 1 Year 2 23,000 48,000 Year 3 11,000 36,000 (1,000) 24,000 Year 4 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.893 1 0.943 0.909 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694...
Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company...
Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Maintenance Equipment Ramp Facilities Computer Network Amount to be invested $790,276 $544,897 $263,378 Annual net cash flows: Year 1 405,000 292,000 186,000 Year 2 377,000 263,000 128,000 Year 3 344,000 234,000 93,000 Present Value of $1 at Compound Interest Year 6%...
Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company...
Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Maintenance Equipment Ramp Facilities Computer Network Amount to be invested $568,602 $336,893 $171,869 Annual net cash flows: Year 1 277,000 186,000 119,000 Year 2 258,000 167,000 82,000 Year 3 235,000 149,000 60,000 Present Value of $1 at Compound Interest Year 6%...
Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $106,400 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 Year 2 Year 3 Year 4 $35,000 $60,000 22,000 46,000 11,000 35,000 (1,000) 23,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.9090.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567...
eBook Calculator Print Item Net Present Value Method, Present Value Index, and Analysis for a service company Continental Rallroad Company is evaluating three capital Investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Maintenance Ramp Computer Equipment Facilities Network Amount to be invested $804,847 $463,438 $242,702 Annual net cash flows: Year 1 392,000 263,000 176,000 Year 2 365,000 237,000 121,000 Year 3 333,000 210,000 88,000 Year 1 Present Value of...
Continental rule company is evaluating three capital investment
proposals by using the net present value method. Relevant data
related to the proposals are summarized as follows :
Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net pre Ramp Computer Maintenance Facilities Network Equipment $158,484 Amount to be invested $335,748 $528,517 Annual net cash flows: 103,000 250,000 173,000 Year 1 71,000 233,000 156,000 Year...
United Bankshores, Inc. wishes to evaluate three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Branch Computer Install Office System Internet Expansion Upgrade Bill-Pay Amount to be invested $579,351 $408,596 $203,492 Annual net cash flows: Year 1 Year 2 261,000 243,000 222,000 191,000 172,000 153,000 117,000 81,000 59,000 Year 3 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833...
Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Net Cash Tracking Technology Income from Net Cash Operations Flow Year Flow $326,000 275,000 Income from Operations $65,100 65,100 65,100 65,100 65,100 $325,500 194,000 $204,000 204,000 204,000 204,000 204,000 $1,020,000 $137,000 104,000 52,000 23,000 9,500 9,500 $325,500 133,000...
Chapter 11-Homework eBook Show Me How Calculator Print Item Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $110,300 of equipment, having a four-year useful life: Net Income Net Cash Flow $37,000 $62,000 Year 1 Year 2 23,000 48,000 Year 3 11,000 36,000 (1,000) 24,000 Year 4 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.893 1 0.943 0.909 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694...
Most questions answered within 3 hours.
-
Do you believe that some things that fall into the category of
“pseudoscience” are worth believing...
asked 19 minutes ago -
A 0.100-kg, 59.6-cm-long uniform bar has a small 0.070-kg mass
glued to its left end and...
asked 11 minutes ago -
Direct Labor Variances
The following data relate to labor cost for production of 4,600
cellular telephones:...
asked 25 minutes ago -
On July 27, 2018, shareholders of the Walt Disney Company and
21st Century Fox agreed to...
asked 3 minutes ago -
Write a brief response, 30-90-words, for each question below. 1.
In your own words, define “Auditing.”...
asked 8 minutes ago -
Water flows through a 8-foot wide and 4-foot tall rectangular
channel. If the desired flow rate...
asked 16 minutes ago -
Cruz Video Center accumulates the following cost and net
realizable data at December 31.
Cameras $14,700...
asked 20 minutes ago -
1. Describe the differences between management in the nonprofit
sector and management in other sectors. How...
asked 26 minutes ago -
Identify the location of the following corresponding operand if
the address field in an instruction contains...
asked 27 minutes ago -
A new battery's voltage may be acceptable (A) or unacceptable
(U). A certain flashlight requires two...
asked 30 minutes ago -
Water has significant IMF, which result in many of its unique
properties—high boiling point relative to...
asked 49 minutes ago -
I need help with an executive summary for Adidas Items to be
included are a discription...
asked 42 minutes ago