Homework Answers
| Calculation of net present value | ||||||
| Now | 1 | 2 | 3 | 4 | ||
| Purchase of equipment | -275000 | |||||
| working capital REQ | -100000 | |||||
| annual net cash receipt | 120000 | 120000 | 120000 | 120000 | ||
| contruction of road | -40000 | |||||
| working capital release | 100000 | |||||
| salvage value | 65000 | |||||
| net cash flow | -375000 | 120000 | 120000 | 80000 | 285000 | |
| pv factor @ 20% | 1 | 0.833 | 0.694 | 0.579 | 0.482 | |
| present value of cash flow | -375000 | 99960 | 83280 | 46320 | 137370 | |
| Net present value | -8070 | |||||
| b) company should not accept the project as NPV is Negative | ||||||
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3.) Having a reliable forecast of national economic growth can be important in making investment decisions....
3.) Having a reliable forecast of national economic growth can be important in making investment decisions. The columns Month, Actualgrowth, Forecast1, Forecast2 and Forecast3 in the associated SPSS file contain actual economic figures over a 24-month period as well as the forecasted growth figures using three separate forecasting techniques. Which of the three forecasting techniques seems to be the best? Month | Actual Growth | Forecast 1 | Forecast 2 | Forecast 3 1 .023 .008 .018 .017 2 .011 ...
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2 homework a Derick Iverson is a divisional manager for Holston Company. His annual pay raises...
2 homework a Derick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on Investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,000,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 15%. The project would provide net operating income each year for five...
Exercise 12A-6 Basic Present Value Concepts (L012-7) The Caldwell Herald newspaper reported the following story, Frank...
Exercise 12A-6 Basic Present Value Concepts (L012-7) The Caldwell Herald newspaper reported the following story, Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.14 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $57,000 each Click here to view Exhibit 123.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using...
I will glady give a thumbs up to whoever can answer this question for me. Thank...
I will glady give a thumbs up to whoever can answer this
question for me. Thank you.
Almendarez Corporation is considering the purchase of a machine that would cost $110,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $16,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $30,000. The company requires a minimum pretax return of 12% on all investment projects...
Simple Regression in Class Example StudentID Exam Score 10 Hours Studied 100 25 225 7 2...
Simple Regression in Class Example StudentID Exam Score 10 Hours Studied 100 25 225 7 2 0 0 20 ol 75 30 25 85 80 90 65 75 95 100 9 001 002 003 004 005 006 007 008 009 010 N=10 5 15 -10 ol 20 -10 S 10 2 6 8 3 S - 3 1 3 0 0 400 9 60 -2 4 100 25 -S 2 -3 9 65 70 55 70 Mean=75 20 ISI ol...
This Question: 1 pt 4 of 13 (0 completo) This Te: Assume that adults have I...
This Question: 1 pt 4 of 13 (0 completo) This Te: Assume that adults have I scores that are normally distributed with a mean of 104 and a standard deviation of 15. Find the third quartos, which is the lo score separating the top 25% from the others Click to view moon of the table. Click to vie. 1000.2of the table. Standard NormalTable (Page 1) The id quartile, 0 Pound to one decimal place as needed) NEGATIVE z Scores Standard...
can you please show me how to arrive at the right answers. thanks so much Ursus,...
can you please show me how to arrive at the right
answers. thanks so much
Ursus, Inc., is considering a project that would have a five-year life and would require a $2,400,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore income taxes.): $3,500,000 2,100,000 1,400,000 Sales Variable expenses Contribution margin Fixed expenses: Fixed out-of-pocket cash...
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has...
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company's present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten...
Exercise 12A-5 Basic Present Value Concepts [LO12-7) The Atlantic Medical Clinic can purchase a new computer...
Exercise 12A-5 Basic Present Value Concepts [LO12-7) The Atlantic Medical Clinic can purchase a new computer system that will save $9,000 annually in billing costs. The computer system will last for eleven years and have no salvage value Click here to view Exhibit 128_1 and Exhibit 128-2. to determine the appropriate discount factors) using tables Required: What is the maximum price le, the price that exactly equals the present value of the annual savings in billing costs) that the Atlantic...
+ Difference Between Binomial and X ignments/833005 LIBtiariwdVasna 20 30 50 60 01 05 40 10 70 80 30 640 490 360 250 160 380 902 090 040 2 810 010 002 0+ C 30 420 480 500 320 020 098 180 A80 180 020 250 002 040 090 360 640 0+ 010 160 00 se0 2 857 343 216 064 027 008 01 970 512 125 0 243 375 096 135 432 384 441 280 007 189 375 007...
2 homework a Derick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on Investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,000,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 15%. The project would provide net operating income each year for five...
Exercise 12A-6 Basic Present Value Concepts (L012-7) The Caldwell Herald newspaper reported the following story, Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.14 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $57,000 each Click here to view Exhibit 123.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using...
I will glady give a thumbs up to whoever can answer this
question for me. Thank you.
Almendarez Corporation is considering the purchase of a machine that would cost $110,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $16,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $30,000. The company requires a minimum pretax return of 12% on all investment projects...
Simple Regression in Class Example StudentID Exam Score 10 Hours Studied 100 25 225 7 2 0 0 20 ol 75 30 25 85 80 90 65 75 95 100 9 001 002 003 004 005 006 007 008 009 010 N=10 5 15 -10 ol 20 -10 S 10 2 6 8 3 S - 3 1 3 0 0 400 9 60 -2 4 100 25 -S 2 -3 9 65 70 55 70 Mean=75 20 ISI ol...
This Question: 1 pt 4 of 13 (0 completo) This Te: Assume that adults have I scores that are normally distributed with a mean of 104 and a standard deviation of 15. Find the third quartos, which is the lo score separating the top 25% from the others Click to view moon of the table. Click to vie. 1000.2of the table. Standard NormalTable (Page 1) The id quartile, 0 Pound to one decimal place as needed) NEGATIVE z Scores Standard...
can you please show me how to arrive at the right
answers. thanks so much
Ursus, Inc., is considering a project that would have a five-year life and would require a $2,400,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore income taxes.): $3,500,000 2,100,000 1,400,000 Sales Variable expenses Contribution margin Fixed expenses: Fixed out-of-pocket cash...
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company's present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten...
Exercise 12A-5 Basic Present Value Concepts [LO12-7) The Atlantic Medical Clinic can purchase a new computer system that will save $9,000 annually in billing costs. The computer system will last for eleven years and have no salvage value Click here to view Exhibit 128_1 and Exhibit 128-2. to determine the appropriate discount factors) using tables Required: What is the maximum price le, the price that exactly equals the present value of the annual savings in billing costs) that the Atlantic...
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