The management of Revco Products is exploring four different investment opportunities. Information on the four projects...
requirement 2 The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 1 2 3 Investment $ (540,000) $ ( 390,000) $ (340 ,000) (450,000) required Present value of cash inflows at a 8% discount 715,947 $ 175,947 549,775 416,102 399,353 rate 99,775 26,102 59,353 Net present value $ Life of the 12 years б уеars 3 years б уеars project Internal rate of 15% 148 10% 178 return...
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 2 $ (440,000) 523,050 83.050 16 years Investment required Present value of cash inflows at a 12% discount rate Net present value Life of the project Intemal rate of return $ (490,000) 596,160 $ 106,160 8 years 18% $ (340,000) 447,120 $ 107.120 8 years $ (460,000) 540,750 80.750 $ 5 vears 19 % 15 % 21 % Because...
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 1 2 3 4 Investment required $ (490,000 ) $ (440,000 ) $ (340,000 ) $ (410,000 ) Present value of cash inflows at a 12% discount rate 532,344 464,524 402,923 444,413 Net present value $ 42,344 $ 24,524 $ 62,923 $ 34,413 Life of the project 6 years 12 years 6 years 3 years Internal rate of return...
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 1 2 3 4 Investment required $ (620,000 ) $ (510,000 ) $ (420,000 ) $ (310,000 ) Present value of cash inflows at a 8% discount rate 697,217 655,640 499,270 386,488 Net present value $ 77,217 $ 145,640 $ 79,270 $ 76,488 Life of the project 6 years 12 years 6 years 3 years Internal rate of return...
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number $(270,000) 5(450, eee) 5(360,000) $(480,000) Investment required Present value of cash inflows at a lex discount rate Net present value Life of the project Internal rate of return $ 336,140 66,140 6 years 522,970 $ 72,970 3 years 433,480 $ 73,400 12 years 145% $ 567,270 87,270 6 years 16% Because the company's required rate of return is 10%,...
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 1 2 3 4 Investment required $ (550,000 ) $ (500,000 ) $ (400,000 ) $ (360,000 ) Present value of cash inflows at a 11% discount rate 566,054 597,240 431,515 415,411 Net present value $ 16,054 $ 97,240 $ 31,515 $ 55,411 Life of the project 6 years 12 years 6 years 3 years Internal rate of return...
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number $(568, 690) Investment required Present value of cash inflows at a 8% discount rate Net present value Life of the project Internal rate of return $(610, Bee) 647,538 S 37,538 648,059 $ 88,059 12 years 11% $(410, 880) 471 See $ 61,589 6 years $(328,888) 368, 735 $ 40,735 6 years 3 years 15% les Because the company's required...
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 2 3 $(460,000) $(360,000) 1 $(510,000) 4 $(370,000) Investment required Present value of cash inflows at a 10% discount rate Net present value Life of the project Internal rate of return $ $ 524,947 $ 14,947 6 years 11% 511,078 51,078 12 years 12% 413,777 $ 53,777 6 years 15% 397,834 27,834 3 years 14% Because the company's required...
Problem 12-21 Preference Ranking of Investment Projects (LO12-5) The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number $(510,000) $(460,000) $(360, eee) $(370,eee) Investment required Present value of cash inflows at a 10% discount rate Net present value Life of the project Internal rate of return $ 524,947 14,947 6 years 11% $ 413,777 $ 53,777 6 years 511,078 $ 51,078 12 years 12% 397,834 27,834 3 years 145...
1 Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Life of the Internal Project Rate (years) of Return Project Net Present Value $318,343 $207, 045 $195,081 $225,079 Investment Required $930,000 $710,000 $630,000 $830,000 21% 11 16% 20% 22% 4. The net present values above have been computed using a 10% discount rate. The company wants your assistance in determining which project to accept first,...