location 1 | |||||
payback period | |||||
175,000/35000 | |||||
5 | years | answer | |||
Location 2 | |||||
3 | years | answer | |||
total | |||||
year 1 | 79,000 | 79,000 | |||
year 2 | 60,000 | 139000 | |||
year 3 | 36,000 | 175000 | |||
Cash payback period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals...
Cash payback period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $175,000 and each with an eight-year life and expected total net cash flows of $280,000. Location 1 ws of $35,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $79,000 Year 5 $25,000 Year 2 60,000 Year 6 19,000 15,000 Year 3 36,000 Year 7 Year 4...
Cash Payback Period for a Service Company Chinook Industries Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $900,000 and each with an eight-year life and expected total net cash flows of $1,000,000. Location 1 is expected to provide equal annual net cash flows of $200,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $300,000 Year 5 $50,000 Year 2 220,000 Year 6 50,000 Year...
Cash Payback period for a Service Company Jane's Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $150,000 and each with an eight-year life and expected total net cash flows of $240,000. Location 1 is expected to provide equal annual net cash flows of $30,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $59,000 Year 2 44,000 29,000 Year 3 Year 4 18,000 Year...
Wyoming Woodworks is evaluating two capital investment proposals for a retail outlet store, each requiring an investment of $1,015,000 and each with a five-year life and expected total net cash flows of $1,268,750. Location 1 is expected to provide equal annual net cash flows of $253,750, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $406,000 Year 2 376,000 Year 3 233,000 Year 4 176,900 Year 5 76,850 Determine the cash payback period...
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $69,000 $69,000 $69,000 Cash flow from operations Year 1 60,000 34,500 69,000 Year 2 9,000 34,500 Year 3 33,500 33,500 Disinvestment 0. Life (years) 3 years 3 years 1 year(a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and...
431 Chapter 10 Capital Investment Analysis -2 p414 PE 10-2A Cash payback period OBJ.2 Determine the as estimated annual net cash flows of $118,600. It is estimated to cost $616,720. cash payback period. Round to one decimal place. Cash payback period -2 p414 PE 10.2B OBJ. 2 project has estimated annual net cash flows of $9.300. It is estimated to cost $41,850 Determine the cash payback period. Round to one decimal place. 3 p419 PE 10-3A Net present value 818...
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $98,000 $98,000 $98,000 Cash flow from operations Year 1 90,000 49,000 98,000 Year 2 8,000 49,000 Year 3 49,000 49,000 Disinvestment 0 0 0 Life (years) 3 years 3 years 1 year (a) Select the best investment proposal using the payback period, the accounting rate...
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $92,000 $92,000 $92,000 Cash flow from operations Year 1 90,000 46,000 92,000 Year 2 2,000 46,000 Year 3 47,500 47,500 Disinvestment 0 0 0 Life (years) 3 years 3 years 1 year (a) Select the best investment proposal using the payback period, the accounting rate of...
Payback Period, IRR, and Minimum Cash Flows The management of Mohawk Limited is currently evaluating the following investment proposal: Time 0 Year 1 Year 2 Year 3 Year 4 Initial investment $ 150,000 -- -- -- -- Net operating cash inflows -- $ 50,000 $ 50,000 $ 50,000 $ 50,000 (a) Determine the proposal's payback period. _____ years (b) Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table approach.) Round answer to...
Payback Period, IRR, and Minimum Cash Flows The management of Mesquite Limited is currently evaluating the following investment proposal: Time 0 Year 1 Year 2 Year 3 Year 4 Initial investment $270,000 -- -- -- -- Net operating cash inflows -- $100,000 $100,000 $100,000 $100,000 (a) Determine the proposal's payback period. _____ years (Round answer to one decimal place.) (b) Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table approach.) Round answer to...