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A company is evaluating three possible investments. Each uses the straight-line method of depreciation. The following...
question 8 solve A company is evaluating three possible investments. Each uses the straight – line...
question 8
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A company is evaluating three possible investments. Each uses the straight – line method of depreciation. The following information is provided by the company: Project A Project B Project C Investment $226,000 $50,000 $226,000 Residual value 0 20,000 36,000 Net cash inflows: Year 1 66,000 28,000 94,000 Year 2 66,000 19,000 64,000 Year 3 66,000 15,000 74,000 Year 4 66,000 12,000 34,000 Year 5 66,000 0 0 What is the accounting rate of return for Proiect C?...
Question 11 1 pts Mulcahey Automobiles Company fabricates automobiles. Each vehicle includes one wiring harness, which...
Question 11 1 pts Mulcahey Automobiles Company fabricates automobiles. Each vehicle includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume 800 units per month Variable cost per unit $7 per unit Fixed costs $12,000 per month An Indonesian factory has offered to supply Mulcahey with ready-made units for a cost of $15 per wiring harness. Assume that Mulcahey's fixed costs could be reduced by $4,000 if it outsources and that Mulcahey...
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments, PV of $1. EV of $1. PVA of $1. and FVA O $(Use appropriate factor(s) from the tables provided) Project Project Initial investment 5[177,325) 5(151.960) Expected net cash flows in ytar: 50.000 53,000 42,00 76,205 56.000 94,400 56,000 20.000 21. 1 a. For each alternative project compute the nel present value. b. For each alternative project compute the profitability...
24) Yates, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straigh...
24) Yates, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available Investment A Investment B 225,000 7 years $20,000 Initial capital investment Estimated useful life $275,000 8 years Estimated residual value $15,000 Estimated annual net cash inflow for 10 years Required rate of return $55,000 12% $35,000 12% Compute the payback period for each investment. Which would you prefer? Show your calculations and round to one...
Matthew Corporation is adding a new product line that will require an investment of $204,000. The...
Matthew Corporation is adding a new product line that will require an investment of $204,000. The product line is estimated to generate cash inflows of $32,000 the first year, $25,000 the second year, and $21,000 each year thereafter for ten more years. What is the payback period? O A. 9.84 years O B. 9.37 years O c. 7.78 years O D. 9 years The Silverside Company is considering investing in two alternative projects: Project 2 $260,000 Investment Useful life (years)...
Overland Corporation has gathered the following data on a proposed investment project: The company uses straight-line...
Overland Corporation has gathered the following data on a
proposed investment project:
The company uses straight-line depreciation on all equipment.
Assume cash flows occur uniformly throughout a year except for the
initial investment.
The accrual accounting rate of return on the investment is:
A. 10.00%
B. 16.67%
C. 36.67%
D. 26.67%
$150,000 $40,000 Investment required in equipment Annual cash inflows Salvage value of equipment... Life of the investment........ Required rate of return ............. $0 10 years 10%
Following is information on two alternative investments being considered by Raw Company. The company requires a...
Following is information on two alternative investments being considered by Raw Company. The company requires a 12% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $ (172,325 ) $ (160,960 ) Expected net cash flows in: Year 1 51,000 45,000 Year 2 50,000 60,000 Year 3 73,295 57,000 Year 4 89,400 76,000 Year 5 66,000 36,000 a. For...
Sandoval Gravel Company entered into each of the following transactions during 2018. Sandoval uses straight-line depreciation...
Sandoval Gravel Company entered into each of the following transactions during 2018. Sandoval uses straight-line depreciation on buildings and furniture, and the 200% declining balance method on equipment. Round all computations to the nearest dollar. A. On January 1, Sandoval paid $ 16,000 for a used John Deere 640R front end loader. The loader has a five-year useful life and a $2,500 estimated residual value. B. On April 1, Sandoval spent $20,000 on a used construction trailer complete with furniture....
11-10 Following is information on two alternative investments being considered by Jolee Company. The company requires...
11-10
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A Project B $ (151,960) Initial investment Expected net cash flows in year: (173,325) 51,000 55,000 72,295 78,400 66,000 36,000 59,000 65,000 85,000 32,000 a. For each alternative project compute the net present value b. For each...
Cepeda Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each...
Cepeda Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. Year AA BB CC 1 $7,000 $9,500 11,000 9,000 9,500 10,000 15,000 9,500 9,000 Total $31,000 28,500 $30,000 The equipment's salvage value is zero. Cepeda uses straight-line depreciation. Cepeda will not accept any project with a payback period over 2 years. Cepeda's minimum required rate of return is 12%.
question 8
solve
A company is evaluating three possible investments. Each uses the straight – line method of depreciation. The following information is provided by the company: Project A Project B Project C Investment $226,000 $50,000 $226,000 Residual value 0 20,000 36,000 Net cash inflows: Year 1 66,000 28,000 94,000 Year 2 66,000 19,000 64,000 Year 3 66,000 15,000 74,000 Year 4 66,000 12,000 34,000 Year 5 66,000 0 0 What is the accounting rate of return for Proiect C?...
Question 11 1 pts Mulcahey Automobiles Company fabricates automobiles. Each vehicle includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume 800 units per month Variable cost per unit $7 per unit Fixed costs $12,000 per month An Indonesian factory has offered to supply Mulcahey with ready-made units for a cost of $15 per wiring harness. Assume that Mulcahey's fixed costs could be reduced by $4,000 if it outsources and that Mulcahey...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments, PV of $1. EV of $1. PVA of $1. and FVA O $(Use appropriate factor(s) from the tables provided) Project Project Initial investment 5[177,325) 5(151.960) Expected net cash flows in ytar: 50.000 53,000 42,00 76,205 56.000 94,400 56,000 20.000 21. 1 a. For each alternative project compute the nel present value. b. For each alternative project compute the profitability...
24) Yates, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available Investment A Investment B 225,000 7 years $20,000 Initial capital investment Estimated useful life $275,000 8 years Estimated residual value $15,000 Estimated annual net cash inflow for 10 years Required rate of return $55,000 12% $35,000 12% Compute the payback period for each investment. Which would you prefer? Show your calculations and round to one...
Matthew Corporation is adding a new product line that will require an investment of $204,000. The product line is estimated to generate cash inflows of $32,000 the first year, $25,000 the second year, and $21,000 each year thereafter for ten more years. What is the payback period? O A. 9.84 years O B. 9.37 years O c. 7.78 years O D. 9 years The Silverside Company is considering investing in two alternative projects: Project 2 $260,000 Investment Useful life (years)...
Overland Corporation has gathered the following data on a
proposed investment project:
The company uses straight-line depreciation on all equipment.
Assume cash flows occur uniformly throughout a year except for the
initial investment.
The accrual accounting rate of return on the investment is:
A. 10.00%
B. 16.67%
C. 36.67%
D. 26.67%
$150,000 $40,000 Investment required in equipment Annual cash inflows Salvage value of equipment... Life of the investment........ Required rate of return ............. $0 10 years 10%
Sandoval Gravel Company entered into each of the following transactions during 2018. Sandoval uses straight-line depreciation on buildings and furniture, and the 200% declining balance method on equipment. Round all computations to the nearest dollar. A. On January 1, Sandoval paid $ 16,000 for a used John Deere 640R front end loader. The loader has a five-year useful life and a $2,500 estimated residual value. B. On April 1, Sandoval spent $20,000 on a used construction trailer complete with furniture....
11-10
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A Project B $ (151,960) Initial investment Expected net cash flows in year: (173,325) 51,000 55,000 72,295 78,400 66,000 36,000 59,000 65,000 85,000 32,000 a. For each alternative project compute the net present value b. For each...
Cepeda Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. Year AA BB CC 1 $7,000 $9,500 11,000 9,000 9,500 10,000 15,000 9,500 9,000 Total $31,000 28,500 $30,000 The equipment's salvage value is zero. Cepeda uses straight-line depreciation. Cepeda will not accept any project with a payback period over 2 years. Cepeda's minimum required rate of return is 12%.
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