Homework Answers
| 1 | ||
| Net Present value | 15330 | =59330-44000 |
| Divide by Investment cost | 44000 | |
| Profitability index | 0.35 | |
| 2 | ||
| Present value of future cash inflows | 83916 | =63000*1.332 |
| 3 | ||
| Net Present value | 11400 | =68400-57000 |
| Divide by Investment cost | 57000 | |
| Profitability index | 0.20 |
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2.
The management of Leitheiser Corporation is considering a project that would require an initial investment...
The management of Leitheiser Corporation is considering a project that would require an initial investment of...
The management of Leitheiser Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $57,630. The profitability index of the project is closest to (Ignore income taxes.): Multiple Choice 1.13 To oo
The management of Leitheiser Corporation is considering a project that would require an initial investment of...
The management of Leitheiser Corporation is considering a project that would require an initial investment of $41,000. No other cash outflows would be required. The present value of the cash inflows would be $52,580. The profitability index of the project is closest to (Ignore income taxes.): Multiple Choice 0.72 1.28 0.28 0.22
Trovato Corporation is considering a project that would require an investment of $62,000. No other cash...
Trovato Corporation is considering a project that would require an investment of $62,000. No other cash outflows would be involved. The present value of the cash inflows would be $77,500. The profitability index of the project is closest to (Ignore income taxes.):
Trovato Corporation is considering a project that would require an investment of $73,000. No other cash...
Trovato Corporation is considering a project that would require an investment of $73,000. No other cash outflows would be involved. The present value of the cash inflows would be $99,280. The profitability index of the project is closest to (Ignore income taxes.):
The management of Hibert Corporation is considering three investment projects-W, X, and Y. Project W would...
The management of Hibert Corporation is considering three investment projects-W, X, and Y. Project W would require an investment of $21,000, Project X of $66,000, and Project Y of $95.000. The present value of the cash inflows would be $22,470 for Project W, $73,920 for Project X, and $98,800 for Project Y. (Ignore income taxes.) The profitability index of investment project X is closest to: Multiple Choice o on 0 0.12
The management of L Corporation is considering a project that would require an investment of $228,000...
The management of L Corporation is considering a project that would require an investment of $228,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $29,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):
13. The management of Lanzilotta Corporation is considering a project that would require an investment of...
13.
The management of Lanzilotta Corporation is considering a project that would require an investment of $228,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $29,000. The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1...
The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.): Project...
The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.): Project 1 Project 2 Project 3 Investment required $ 82,400 $ 125,900 $ 235,500 Discounted value of cash inflows $ 90,064 $ 145,084 $ 258,175 The only cash outflows are the initial investments in the projects. Required: Rank the investment projects using the project profitability index. Rank 1 project _____________ Rank 2 project _____________ Rank 3 project _____________
Olinick Corporation is considering a project that would require an investment of $379,000 and would last...
Olinick Corporation is considering a project that would require an investment of $379,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows Ignore Income taxes.): $240,000 27,000 213,000 Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses Net operating income 45,000 58,000 53,000 156,000 $ 57,000 The scrap value of the project's assets at the end of the project would be...
A company is considering the following investment projects. (Ignore income taxes): Project Q Project R Project...
A company is considering the following investment projects. (Ignore income taxes): Project Q Project R Project S Investment required $ 86,000 $ 130,000 $ 244,000 Present value of cash inflows $ 94,060 $ 149,840 $ 267,440 The only cash outflows are the initial investments in the projects. Rank the investment projects using the project profitability index.
The management of Leitheiser Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $57,630. The profitability index of the project is closest to (Ignore income taxes.): Multiple Choice 1.13 To oo
The management of Hibert Corporation is considering three investment projects-W, X, and Y. Project W would require an investment of $21,000, Project X of $66,000, and Project Y of $95.000. The present value of the cash inflows would be $22,470 for Project W, $73,920 for Project X, and $98,800 for Project Y. (Ignore income taxes.) The profitability index of investment project X is closest to: Multiple Choice o on 0 0.12
13.
The management of Lanzilotta Corporation is considering a project that would require an investment of $228,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $29,000. The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1...
Olinick Corporation is considering a project that would require an investment of $379,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows Ignore Income taxes.): $240,000 27,000 213,000 Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses Net operating income 45,000 58,000 53,000 156,000 $ 57,000 The scrap value of the project's assets at the end of the project would be...
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