1) Net present value of project X = Present value of cash inflow-Present value of cash outflow
= 7000*3.589-18000
Net present value of project X = 7123
2) Net present value of Project Y = 41000*.39-18000 = -2010
3) Project X
Exercise 12-14 Comparison of Projects Using Net Present Value (L012-2] Labeau Products, Ltd., of Perth, Australia,...
Exercise 12-14 Comparison of Projects Using Net Present Value [LO12-2] Labeau Products, Ltd., of Perth, Australia, has $29,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Project X Invest in Project Y Investment required $ 29,000 $ 29,000 Annual cash inflows $ 8,000 Single cash inflow at the end of 6 years $ 60,000 Life of the project 6 years 6 years The company’s discount rate is 15%. Click...
EXERCISE 7-14 Comparison of Projects Using Net Present Value L07-2 Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Project X Invest in Project Y $35,000 $35,000 $12.000 Investment required Annual cash inflows ..... Single cash inflow at the end of 6 years. Life of the project. $90,000 6 years 6 years The company's discount rate is 18%. Required: 1. Compute the...
Labeau Products, Ltd., of Perth, Australia, has $18,000 to invest. The company is trying to decide between two altemative uses for the funds as follows: Invest in Invest in Pro $18,000 18,000 $ 7,000 Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project $ 41,000 6 years 6 years The company's discount rate is 17%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using...
12 Graded Homework Sarved 2 Exercise 12-14 Comparison of Projects Using Net Present Value (L012-2) Labeau Products, Ltd., of Perth, Australia, has $16,000 to invest. The company is trying to decide between two alternative uses fc funds as follows: Invest Invest -Book Project Project Print Tences Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project $ 16,000 $ 16,000 $ 5,000 $ 35,000 years 6 years The company's discount rate is...
Comparison of Projects Using Net Present Value Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: The company’s discount rate is 18%. Required: Which alternative would you recommend that the company accept? Show all computations using the net present value approach. Prepare separate computations for each project.
Labeau Products, Ltd., of Perth, Australia, has $25,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest Invest in in Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project Project Project 25,000 $25,000 $60,000 8,000 years 6 years The company's discount rate is 16%. Click here to view Exhibit 13B-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using tables. Required:...
Labeau Products, Ltd., of Perth, Australia, has $11,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: points Invest Invest in in Project Project eBook Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project $11,000 $11,000 $ 4,000 $ 25,000 6 years 6 years Ask The company's discount rate is 15%. Print Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine...
Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: (Ignoreincome taxes.)Invest inProject X Invest inProject YInvestment required $35,000 $35,000Annual cash inflows $9,000Single cash inflow at the end of 10 years $150,000Life of the project 10 years 10 yearsThe company's discount rate is 18%.(1)Determine the net present value. (Round your answer to the nearest dollar amount. Negative amount should be indicated by a minus sign....
Labeau Products, Ltd., of Perth, Australia, has $19,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: The company's discount rate is 14%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: a. Determine the net present values.
Labeau Products, Ltd. of Perth. Australia, has $23,000 to invest. The company is trying to decide between two alternative using for the funds as follows: The company's discount rate is 16%. Determine the net present values (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).)