A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,100 1,300 1,600 B $1,700 1,700 1,700 If the firm can earn 7 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. PV(Investment A): $ PV(Investment B): $ If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is the cost. The present value of investment B is the cost.
Cash flows of two investments are given and asked to find the present values of these investments. All the calculations and formulas are included in the below images:
A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2...
Appendix B Appendix D A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,500 1,900 2,200 B $1,400 1,400 1,400 If the firm can earn 7 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. PV(Investment A): $ PV(Investment B): $ If each investment costs $4,000, is the...
will like for correct answer! OA frm has two pessible investments with the following cash inflows. Each Investment costs $540, and the cost of capital is seven percent. Use Appendix 8 and Appendix D to questions. Assume that the investments are not mutually exclusive and there are no budget restrictions. answer the Cash Inflows Year A 350 160 120 $210 210 210 a. Based on each investment's net present value, which Investment(s) should the firm make? Use a minus sign...
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 3,000 $6,000 2 4,000 5,000 3 5,000 4,000 4 6,000 3,000 Total $18,000 $18,000 The discount rate is 10%. Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial...
Use the following information: Annual cash inflows that will arise from two competing investment projects are given below: Investment Year A B 1 $4,000 $16,000 2 $8,000 $12,000 3 $12,000 $8,000 4 $16,000 $4,000 Total $40,000 $40,000 Each investment project will require the same investment outlay. The discount rate is 16% Compute the present value of the cash inflows for Investment A. (Round to nearest dollar) Compute the present value of the cash inflows for Investment B. (Round to nearest...
Problem 22-17 A firm has the following investment alternatives. Each costs $14,000 and has the following cash inflows. Year Cash Inflow 1 2 3 $5,000 $5,000 $5,000 $5,000 4,000 5,600 5,100 4,300 5,500 4,500 3,900 3,100 Investment A is considered to be typical of the firm's investments. Investment B's cash flows vary over time but are considered to be less certain. Investment C's cash flows diminish over time but because most of the cash flows occur early in the investment's...
Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Investment Investment Year 1 Year 2 Year 3 Year 4 $ 3,000 4,000 5,000 6.000 $6,000 5,000 4,000 3,000 Total $18,000 $18,000 Click here to view Exhibit 11B-1, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment using a 11% discount rate. (Round discount factor(s) to 3 decimal places,...
A firm’s cost of capital is 9 percent. The firm has three investments to choose among; the cash flows of each are as follows: Cash Inflows Year A B C 1 $ 457 — $ 1,344 2 457 — — 3 457 — — 4 — $ 1,756 — Each investment requires a $1,200 cash outlay, and investments B and C are mutually exclusive. Use Appendix A, Appendix B and Appendix D to answer the questions. Assume that the investments...
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 7,000 $10,000 2 8,000 9,000 3 9,000 8,000 4 10,000 7,000 Total $34,000 $34,000 The discount rate is 5%. Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment.
Use the following information for the next two questions. Annual cash inflows that will arise from two competing investment projects are given below: Investment Year $4,000 $8,000 $12,000 4 $16,000 Total $40,000 3 $16,000 $12,000 $8,000 $4,000 $40,000 Each investment project will require the same investment outlay. The discount rate is 16% Compute the present value of the cash inflows for Investment A. (Round to nearest dollar) Question 12 Compute the present value of the cash inflows for Investment B....
Graded Problems Saved Help Annual cash inflows from two competing Investment opportunities are given below. Each investment opportunity will require the same initial investment. Investment Investment Year 1 Year 2 Year 3 Year 4 $3,000 4,000 5 ,000 6,000 $6,000 5,000 4,000 3,000 Total $18,000 $18,000 Click here to view Exhibit 118-1, to determine the appropriate discount factor(s) using tables Required: Compute the present value of the cash inflows for each investment using a 8% discount rate. (Round discount factor(s)...