Fill in the lettered blanks in the following table: Investment A Investment B Investment C...
Fill in the lettered blanks in the following table:
|
|
Investment A |
Investment B |
Investment C |
|
Amount of investment |
$40,000 |
(A) |
$20,000 |
|
Economic life in years |
10 |
5 |
8 |
|
Annual cash flow |
$ 5,000 |
(B) |
$ 2,500 |
|
Payback period in years |
(C) |
4 |
(D) |
|
Present value of cash flows |
(E) |
$33,000 |
(F) |
|
Net present value |
$ 5,500 |
$ 3,000 |
($1,000) |
Homework Answers
Answer with working notes is given below
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Fill in the lettered blanks in the following table:
Investment A
Investment B
Investment C...
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash...
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment $15,000 $ 8,000 OvoAWN Cash Inflow $1,000 $2,000 $2,500 $ 4,000 $5,000 $6,000 $5,000 $ 4,000 $3,000 $2,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1...
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash...
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $15,000 $1,000 $ 8,000 $2,000 $2,500 $4,000 $5,000 $6,000 $5,000 $4,000 $3,000 $2,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large?
For the table, it's the annual machine maintenaince expense For Years 1 _ 2000 2_3000 3_3000...
For the table, it's the annual machine maintenaince expense
For Years
1 _ 2000
2_3000
3_3000
4_4000
5_4000
Thanks
A manufacturing equipment investment of $150,000 is expected to generate the following cash flows over the next five years: Add'l Yr Cost Annua Cash Saving machin mainter Expense $2,000 Sales $30,000 $5,000 1 40,000 5,000 2 3,000 3 40,000 8,000 3,000 4,000 4,000 4 50,000 10,000 5 50,000 10,000 Required: A. Draw a cash flow timeline for the proposal. B. Compute...
Fill in the blanks Units of Production a) Prepare a depreciation schedule for the following scenario....
Fill
in the blanks
Units of Production a) Prepare a depreciation schedule for the following scenario. Inputs: Machine Cost Estimated Salvage Value Estimated Useful Life in Hours 50,000 10,000 20,000 Depreciation Annual Depreciation Accumulated Expense Rate Carrying Actual Usage Year Per Hour Depreciation Value # of Hours $10,000 $6,000 $14,000 $10,000 16,000 30,000 50,000 40,000 34,000 20,000 $2.00 5,000 $2.00 3,000 7,000 4,000 2,000 3 $2.00 $2.00 $2.00 b) Prepare a depreciation schedule for the following scenario. b) Prepare a...
Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Year 0...
Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Year 0 1 Cash Flow (A) Cash Flow (B) -$54,000 $ 64,000 20,000 12,000 22,000 15,000 18,000 20,000 5,000 224,000 NM What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years Which project should the company accept? Project A O Project B An investment project has annual cash inflows of $5,000, $3,300, $4,500,...
Situation: You are deciding to start a delivery business in January 2020. The initial investment includes...
Situation: You are deciding to start a delivery business in January 2020. The initial investment includes a small truck which costs $70,000. Other expenses were included in the expected cash flows. The truck has a useful life of 5 years and an estimated residual value at the end of the year of $10,000 (the amount expected the truck can be sold). Depreciation is the only non-cash expense. The net cash flows of each year in the following 5 years are...
23. Payback and NP a. What is the payback period on each of the following projects?...
23. Payback and NP a. What is the payback period on each of the following projects? Net Present Value and Other Investment Criteria 371 Cash Flows, Dellars Project Time: 1 5,000 1,000 000 3,000 1,000 1,000 2,000 3,000 5.000 1.000 1.000 3000 +5,000 b. Given that you wish to use the payback rule with a cutoff period of 2 years, which proj- ects would you accept e. If you use a cutoff period of 3 years, which projects would you...
2A- The management of Unter Corporation, an architectural design firm, is considering an investment with the...
2A- The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: (2 marks) Year Investment Cash Inflow 1....... $15,000 $1,000 $ 8,000 $2,000 $2,500 $4,000 $5,000 $6,000 $5,000 $4,000 $3,000 10. $2,000 CON O Required: 1. Determine the payback period of the investment. (1 mark) 2. Would the payback period be affected if the cash inflow in the last year were several times as large? (1 mark)
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year A B C 1 $1,000 $3,000 $5,000 2 2,000 3,000 5,000 3 3,000 3,000 (5,000) 4 -4,000 3,000 (5,000) 5 4,000 5,000 15,000 a. What is the present value of investment A at an annual discount rate of 9 percent? (Round to the nearest cent.) What is the present value of...
Please help me solve 4-8 Use the following table to answer questions 1 – 6. The...
Please help me solve 4-8
Use the following table to answer questions 1 – 6. The wacc is 10% for all projects in this table. Year Project A -1,000 1,000 Project B -1,000 300 400 500 600 Project C -1,000 550 450 350 250 Project D -1,000 600 800 1. Compute the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period (PB) for each project: Project A Project B Project C Project D WACC...
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment $15,000 $ 8,000 OvoAWN Cash Inflow $1,000 $2,000 $2,500 $ 4,000 $5,000 $6,000 $5,000 $ 4,000 $3,000 $2,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1...
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $15,000 $1,000 $ 8,000 $2,000 $2,500 $4,000 $5,000 $6,000 $5,000 $4,000 $3,000 $2,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large?
For the table, it's the annual machine maintenaince expense
For Years
1 _ 2000
2_3000
3_3000
4_4000
5_4000
Thanks
A manufacturing equipment investment of $150,000 is expected to generate the following cash flows over the next five years: Add'l Yr Cost Annua Cash Saving machin mainter Expense $2,000 Sales $30,000 $5,000 1 40,000 5,000 2 3,000 3 40,000 8,000 3,000 4,000 4,000 4 50,000 10,000 5 50,000 10,000 Required: A. Draw a cash flow timeline for the proposal. B. Compute...
Fill
in the blanks
Units of Production a) Prepare a depreciation schedule for the following scenario. Inputs: Machine Cost Estimated Salvage Value Estimated Useful Life in Hours 50,000 10,000 20,000 Depreciation Annual Depreciation Accumulated Expense Rate Carrying Actual Usage Year Per Hour Depreciation Value # of Hours $10,000 $6,000 $14,000 $10,000 16,000 30,000 50,000 40,000 34,000 20,000 $2.00 5,000 $2.00 3,000 7,000 4,000 2,000 3 $2.00 $2.00 $2.00 b) Prepare a depreciation schedule for the following scenario. b) Prepare a...
Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Year 0 1 Cash Flow (A) Cash Flow (B) -$54,000 $ 64,000 20,000 12,000 22,000 15,000 18,000 20,000 5,000 224,000 NM What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years Which project should the company accept? Project A O Project B An investment project has annual cash inflows of $5,000, $3,300, $4,500,...
Situation: You are deciding to start a delivery business in January 2020. The initial investment includes a small truck which costs $70,000. Other expenses were included in the expected cash flows. The truck has a useful life of 5 years and an estimated residual value at the end of the year of $10,000 (the amount expected the truck can be sold). Depreciation is the only non-cash expense. The net cash flows of each year in the following 5 years are...
23. Payback and NP a. What is the payback period on each of the following projects? Net Present Value and Other Investment Criteria 371 Cash Flows, Dellars Project Time: 1 5,000 1,000 000 3,000 1,000 1,000 2,000 3,000 5.000 1.000 1.000 3000 +5,000 b. Given that you wish to use the payback rule with a cutoff period of 2 years, which proj- ects would you accept e. If you use a cutoff period of 3 years, which projects would you...
2A- The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: (2 marks) Year Investment Cash Inflow 1....... $15,000 $1,000 $ 8,000 $2,000 $2,500 $4,000 $5,000 $6,000 $5,000 $4,000 $3,000 10. $2,000 CON O Required: 1. Determine the payback period of the investment. (1 mark) 2. Would the payback period be affected if the cash inflow in the last year were several times as large? (1 mark)
Please help me solve 4-8
Use the following table to answer questions 1 – 6. The wacc is 10% for all projects in this table. Year Project A -1,000 1,000 Project B -1,000 300 400 500 600 Project C -1,000 550 450 350 250 Project D -1,000 600 800 1. Compute the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period (PB) for each project: Project A Project B Project C Project D WACC...
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