Question

19 MGMT5433Z01-1920-26505 A company would like to invest in a project. The investment cost are $80,000 at the beginning of the first period, $100.000 more at the beginning of the second period and $60,000 more at the beginning of the fourth period The project has a 10-period useful life. The cash inflows at the end of period 5 through period 10 are $80,000., $90,000, $100,000, $120,000. $200,000, and $260,000 respectively. The cost of capital in period 1 through penod 10 is 14% The net present value of the project is $ NOTE: Use at least 6 decimal places. Do not use any comma in your answer You must show your calculation steps clearly
0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
19 MGMT5433Z01-1920-26505 A company would like to invest in a project. The investment cost are $80,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A project has 80 activities. At the end of penod 11, activity A is 70% completed. activity B is 9...

    A project has 80 activities. At the end of penod 11, activity A is 70% completed. activity B is 95% completed, activity C is 100% completed, and activity D is 40% completed The budgeted costs for these activities are shown below Activity Total Budgeted Cost ($) 30,000 80,000 60,000 70,000 According to the project plan, the cumulative budgeted cost at the end of period 11 is $268,000 and the total project budgeted cost is $2,500,000. The cumulative actual cost at...

  • 10 of 15 (7 compl The Silverside Company is considering investing in two alternative projects: Project...

    10 of 15 (7 compl The Silverside Company is considering investing in two alternative projects: Project 1Project 2 $200,000 $260,000 Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return 4 $90,000 $70,000 $20,000 $16,000 Straight- line Straight -line 6% 8% What is the payback period for Project 2? O A. 13.00 years OB. 2.22 years O C. 10.00 years D. 3.71 years

  • Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of...

    Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding...

  • Given a project with the following cash flows and a cost of capital of 9%. Calculate...

    Given a project with the following cash flows and a cost of capital of 9%. Calculate the NPV, IRR, MIRR, and PI. For each of the four calculations, give a brief interpretation of what it measures and how it should be used to evaluate a project. Should the project be accepted? Why or why not? Time Period        Cash Flow         0                         -$200,000         1                         $50,000         2                         $70,000         3                         -$80,000         4                         $75,000         5                         $100,000         6                         $120,000...

  • Slick Company is considering a capital project involving a $225,000 investment in machinery and a $45,000...

    Slick Company is considering a capital project involving a $225,000 investment in machinery and a $45,000 investment in working capital. The machine has an expected useful life of 10 years and no salvage value. The annual cash inflows (before taxes) are estimated at $90,000 with annual cash outflows (before taxes) of $30,000. The company uses straight-line depreciation. Assume the federal income tax rate is 40%. The company's new accountant computed the net present value of the project using a minimum...

  • Slick Company is considering a capital project involving a $225,000 investment in machinery and a $45,000...

    Slick Company is considering a capital project involving a $225,000 investment in machinery and a $45,000 investment in working capital. The machine has an expected useful life of 10 years and no salvage value. The annual cash inflows (before taxes) are estimated at $90,000 with annual cash outflows (before taxes) of $30,000. The company uses straight-line depreciation. Assume the federal income tax rate is 40%. The company's new accountant computed the net present value of the project using a minimum...

  • question 2 hello can you help me with these Q1 AND Q2 THAN YOU 2. An account in Building Society A pays 7.4% interest,...

    question 2 hello can you help me with these Q1 AND Q2 THAN YOU 2. An account in Building Society A pays 7.4% interest, compounded quarterly. while another Building Society B pays 7.5% with annual compounding. You have £1,000 to invest. What is the value of your investment in these Societies after three years? Which Society do you prefer? What additional amount would you have to invest in this Society at the start of the fourth year to achieve a...

  • subject: Managerial accounting. can you please answer in a simple way, step by step. Question 1. Jetblack Ltd. ar...

    subject: Managerial accounting. can you please answer in a simple way, step by step. Question 1. Jetblack Ltd. are currently considering two alternative projects Alpha & Beta. The details of the projects are as follows: Alpha: This project would require an initial investimcent of £180,000 which would be payable 50% on commencement of the project and he balance at the end of the first year. The working capital requircment is expected to be £20,000 and will be nccessary at the...

  • XYZ is considering a project with an annual cash flow of GH¢ 80,000. The project would...

    XYZ is considering a project with an annual cash flow of GH¢ 80,000. The project would have a 10-year life, and the company uses a discount rate of 8 percent. (DF@ N=10, 8% = 6.710). What is the maximum amount the company could invest in the project and have the project still be acceptable (rounded)?\ Select one: a. GH¢ 406,420. b. GH¢ 800,000. c. GH¢ 536,800. d. GH¢ 727,208. The ABC Company has fixed costs of GH¢150,000 and variable costs...

  • The directors of a small production company have the opportunity to invest in one of two...

    The directors of a small production company have the opportunity to invest in one of two new projects. Both projects involve the acquisition of new machinery. The figures for the projects are as follows: The business has an estimated cost of capital of 10%. They use a straight-line method of depreciation for non-current assets to calculate operating profit. The business has sufficient funds to meet the capital expenditure requirements. You must demonstrate the main methods of project appraisal. Produce a...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT