Cash flow | Select Chart | Amount (a) | X | P. V Factor (b) | = | Present Value (a) X (b) |
Annual cash flow | Present Value of an Annuity of 1 | $ 14,900 | X | 2.4869 | = | $ 37,055 |
Residual Value | Present Value of 1 | $ 11,400 | X | 0.7513 | = | $ 8,565 |
Total cash proceeds | Present value of cash inflows | $ 45,620 | ||||
Immediate Cash outflows | $ -49,800 | |||||
Net Present Value | $ -4,180 | |||||
Annual cash Inflow | = | Depreciation + Annual Income | ||||
= | [($49800 - $11400)/3] + $2100 | |||||
= | $ 14,900 | |||||
Required information Use the following information for the Quick Study below. The following information applies to...
Required intormation Use the following information for the Quick Study below. The following information applies to the questions displayed below.J Peng Company is considering an investment expected to generate an average net income after taxes of $2,800 for three years. The investment costs $59,400 and has an estimated $7,200 salvage value. QS 25-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Answer is complete but...
Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 12% return from its investments. Investment Al $ (200,000) Initial investment Expected net cash flows in year: 100,000 90,000 95,000 لیا QS 24-11 Net present value LO P3 Compute this investment's net present value. (PV of $1, FV of $1,...
Required information Use the following information for the Quick Study below. (The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 6% return from its investments. Investment Al $(250,000) Initial investment Expected net cash flows in year: 140,000 96,000 121,000 QS 24-12 Net present value, with salvage value Lo P3 Assume that instead of a zero salvage value, as shown above,...
Required information Use the following information for the Quick Study below. (The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 6% return from its investments. Investment Al $(250,000) Initial investment Expected net cash flows in year: 140,000 96,000 121,000 QS 24-11 Net present value LO P3 Compute this investment's net present value. (PV of $1, FV of $1, PVA of...
Check my work Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below.) Part 1 of 2 Park Co. is considering an investment that requires immediate payment of $29,480 and provides expected cash inflows of $9,100 annually for four years. Park Co. requires a 8% return on its investments 1.25 points QS 24-2 Net present value LO P3 eBook Hint 1-a. What is the net present value of this investment?...
Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below Following is Information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 3 return from its investments. Investment $ (320,000) Initial Investment Expected net cash flows in year: 155,000 120,000 91,000 QS 24-11 Net present value LO P3 Compute this investment's net present value. PV of $1, FV of $1, PVA of...
Required information [The following information applies to the questions displayed below.) Peng Company is considering an investment expected to generate an average net income after taxes of $3,100 for three years. The investment costs $51,900 and has an estimated $10,800 salvage value. Assume Peng requires a 5% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate...
Required information [The following information applies to the questions displayed below.] Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. The investment costs $54,900 and has an estimated $8,100 salvage value. Assume Peng requires a 5% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate...
Required information The following information applies to the questions displayed below. Peng Company is considering an investment expected to generate an average net income after taxes of $2.200 for three years. The investment costs $59,100 and has an estimated $6,900 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate...
Required information [The following Information applies to the questions displayed below.] Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The Investment costs $57,000 and has an estimated $9,900 salvage value. Assume Peng requires a 10% return on ts Investments. Compute the net present value of this Investment. Assume the company uses stralght-line depreclation. (PV of $1. FV of $1, PVA of $1 and FVA of $1) (Use appropriate...