Homework Answers
| NPV = Present value of cash inflows – Present value of cash outflows | ||||
| Years | Net Cash flow | Factor | PV | |
| 1-7 | Present value of annuity | 53000 | 4.288 | 227264 |
| 0 | Investment | -280000 | 1 | -280000 |
| NPV | -52736 | |||
| Project B | ||||
| Years | Net Cash flow | Factor | PV | |
| 1-10 | Present value of annuity | 74000 | 5.65 | 418100 |
| 0 | Investment | -395000 | 1 | -395000 |
| NPV | 23100 | |||
| Maximum Acceptable price = Present value of cash inflows | ||||
| Project A | 227264 | |||
| B | 418100 | |||
| PI = Present value of cash inflows/Initial investment | ||||
| Project A | 0.8117 | |||
| B | 1.0585 | |||
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Use the NPV method to determine whether McKnight Products should invest in the following projects: •...
Use the NPV method to determine whether Mcknight Products should invest in the following projects: •...
Use the NPV method to determine whether Mcknight Products should invest in the following projects: • Project A costs $275,000 and offers nicht annual net cash inflows of $61,000. Mcknight Products requires an annual return of 12% on projects like A • Project costs $375,000 and offers nine annual net cash inflows of $66.000. Mcknight Products demands an annual return of 14% on investments of this nature (Click the icon to view the present value annuity table.) Click the loon...
Check my work please. Use the NPV method to determine whether Rouse Products should invest in...
Check my work please.
Use the NPV method to determine whether Rouse Products should invest in the following projects: Project A: Costs $290,000 and offers eight annual net cash inflows of $53,000. Rouse Products requires an annual return of 14% on investments of this nature. Project B: Costs $380,000 and offers 10 annual net cash inflows of $77,000. Rouse Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1...
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Use the NPV method to determine whether Mcknight Products should invest in the following projects: • Project A costs $275,000 and offers nicht annual net cash inflows of $61,000. Mcknight Products requires an annual return of 12% on projects like A • Project costs $375,000 and offers nine annual net cash inflows of $66.000. Mcknight Products demands an annual return of 14% on investments of this nature (Click the icon to view the present value annuity table.) Click the loon...
Check my work please.
Use the NPV method to determine whether Rouse Products should invest in the following projects: Project A: Costs $290,000 and offers eight annual net cash inflows of $53,000. Rouse Products requires an annual return of 14% on investments of this nature. Project B: Costs $380,000 and offers 10 annual net cash inflows of $77,000. Rouse Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1...
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