Project C1 | |||||
Initial Investment | = | $ 2,58,000 | |||
Chart values are based on: | |||||
i= | 10% | ||||
Year | Cash Inflow | X | P.V Factor | = | Present Value |
1 | $ 22,000 | X | 0.9091 | = | $ 20,000 |
2 | $ 1,18,000 | X | 0.8264 | = | $ 97,521 |
3 | $ 1,78,000 | X | 0.7513 | = | $ 1,33,734 |
$ 2,51,255 | |||||
Present Value of Cash Inflow | = | $ 2,51,255 | |||
Present Value of Cash Outflow | = | $ 2,58,000 | |||
Net Present Value | = | $ -6,745 | |||
Project acquired or not | = | No | |||
Project C2 | |||||
Initial Investment | = | $ 2,58,000 | |||
Chart values are based on: | |||||
i= | 10% | ||||
Year | Cash Inflow | X | P.V Factor | = | Present Value |
1 | $ 1,06,000 | X | 0.9091 | = | $ 96,364 |
2 | $ 1,06,000 | X | 0.8264 | = | $ 87,603 |
3 | $ 1,06,000 | X | 0.7513 | = | $ 79,639 |
$ 2,63,606 | |||||
Present Value of Cash Inflow | = | $ 2,63,606 | |||
Present Value of Cash Outflow | = | $ 2,58,000 | |||
Net Present Value | = | $ 5,606 | |||
Project acquired or not | = | Yes | |||
Project C3 | |||||
Initial Investment | = | $ 2,58,000 | |||
Chart values are based on: | |||||
i= | 10% | ||||
Year | Cash Inflow | X | P.V Factor | = | Present Value |
1 | $ 1,90,000 | X | 0.9091 | = | $ 1,72,727 |
2 | $ 70,000 | X | 0.8264 | = | $ 57,851 |
3 | $ 58,000 | X | 0.7513 | = | $ 43,576 |
$ 2,74,155 | |||||
Present Value of Cash Inflow | = | $ 2,74,155 | |||
Present Value of Cash Outflow | = | $ 2,58,000 | |||
Net Present Value | = | $ 16,155 | |||
Project acquired or not | = | Yes |
Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project...
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Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $336,000 and would yield the following annual cash flows. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) ci c2 C3 Year 1 $ 48,000 $132,000 $216,000 Year 2 144,000 132,000 96,000 Year 3 204,000 132,000 84,000 Totals $396,000 $396,000 $396,000 (1) Assume that the company requires a...
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A company can invest in each of three cheese-making projects: C1, C2 and C3. Each project requires an initial investment of $312,000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Year 1 Year 2 Year 3 Totals ci $ 40,000 136,000 196,000 $372,000 c2 $124,000 124,000 124,000 $372,000 $208,000 88,000 76,000 $372,000 1. Assume that the company requires a 9% return from its investments. Using net present...
i was not given the PV factor table Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $264,000 and would yield the following annual cash flows PV of $1. FV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Year 1 $ 24,000 120,000 180.00 5108,000 1e8,eee les.ee $324.ee $ 192,000 72.000 60,000 $324.000 $324.00 1. Assume that the company requires...
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $315,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $315,000 investment for new machinery with a four-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. FV of $1. PVA of $1. and FVA...
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $320,000 investment for new machinery with a four-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (FV of $1, PV of $1, FVA of $1 and PVA...