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Required informatlon The following Information applies to the questions displayed below.] Project A requires a $310,000 Inltlal Investment for new machinery with a five-year life and a salvage value of $31,500. The company uses stralght-lne depreclation. Project A Is expected to yleld annual net Income of $28,900 per year for the next five years. Compute Project As accounting rate of return. Accounting Rate of Return Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting rate of returnRequired information The following information applies to the questions displayed below. Peng Company is consldering an Investment expected to generate an average net Income after taxes of $2.400 for three years. The Investment costs $56,400 and has an estimated $7,800 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this m estment Assume ne company:uses stralght-line depreclation. (PV of $1, FV of $1. PVA of $1, and FVA of $1 (Use approprlate factor(s) from the tables provided. Negative amounts should be Indicated by a minus sign.) Cash Flow Annual cash flow Residual value Select Chart Amount x PV FactorPresent Value Net present valueRequired information The following information applies to the questions displayed below.] A company is consldering Investing In a new machine that requlres a cash payment of $51,849 today. The machine w generate annual cash flows of $20.483 for the next three years. What Is the Internal rate of return If the company buys this machine? (PV of $1. FV of $1.PVA of $1, and FVA of $1 (Use approprlate factor(s) from the tables provided.) Present Value Factor unt Invested Annual Net Cash Flow Interna Rate of ReturnCompute the payback period for each of these two separate Investments: a. A new operating system for an existing machine is expected to cost $250,000 and have a useful ife offouryers. The system · ylelds an Incremental after-tax Income of $72.115 each year after deducting Its stralght-ine depreclation. The predicted salvage value of the system is $10,000. b. A machine costs $180,000, has a $13,000 salvage value, Is expected to last nine years, and will generate an after-tax Income of $39,000 per year after straight-llne depreclation. Choose Numerator: Choose Payback Period -Payback period Denominator: ita. A new operating system for an existing machine Is expected to cost $740.000 and have a useful life of six years. The system ylelds an Incremental after-tax Income of $180,000 each year after deducting its stralght-line depreclation. The predicted salvage value of the system is $24.400. b. A machine costs $490,000, has a $34,700 salvage value, Is expected to last elght years, and will generate an after-tax Income of $72.000 per year after straight-line depreclation. Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. PV of $1. FV of $1. PVA of $1, and FVA of S (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A new operating system for an existing machine is expected to cost $740,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,400. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount x PV FactorPresent Value value Net present value 《 Required A Required B>a. A new operating system for an existing machine Is expected to cost $740.000 and have a useful life of slx years. The system ylelds an Incremental after-tax Income of $180,000 each year after deducting its stralght-ine depreclation. The predicted salvage value of the system is $24,400. b. A machine costs $490,000, has a $34,700 salvage value, Is expected to last elght years, and wll generate an after-tax Income of $72000 per year after stralght-line depreclation. Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use approprlate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. A machine costs $490,000, has a $34,700 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount | x | PV Factor l = Present Value Net present value 《 Required A RequiredBA machine costs $400.000 and is expected to yleld an after-tax net Income of $9.000 each year. Management predicts this machlne has a 8-year service lfe and a $80.000 salvage value, and It uses straight-lne depreclation. Compute this machlnes accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return

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