Homework Answers
3. d. 2.5
4. a. Payback>Life (can't recover cost).
5. c. NPV(B6,BE:B5)+B2
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Please help me answer questions 3,4 & 5.
2. What is the correct value for the...
Calculate the payback period, ARR, IRR and NPV (at 12%) for two proposed four-year projects, B1...
Calculate the payback period, ARR, IRR and NPV (at 12%) for two proposed four-year projects, B1 and B2, the cash flows (EBDIT) for which are as follows: Year 0 1 2 3 4 B1 -60,000 9,000 10,000 25,000 30,000 B2 -60,000 30,000 25,000 10,000 9,000 (Assume that straight-line depreciation is applicable and that there is no income tax.) Why are the NPV and IRR of project B2 superior to B1?
1. part 2 Part 3 File Home Insert Page Layout Formulas Data Rei Arial 12 A...
1.
part 2
Part 3
File Home Insert Page Layout Formulas Data Rei Arial 12 A A X Cut LECopy Format Painter Paste BIU. A 1.1.1 Clipboard Г Font : с A Year B Cash Inflows (Outflows) 1 1 2 0 3 4 2 5 3 6 4 7 5 8 9 Annual discount rate 10 Net present value 11 Internal rate of return ($200,000) $40,000 $80,000 $38,000 $50,000 $58,000 8.00% $12,015.09 10.23% Applying Excel 8: Calculating internal rate of...
Hardware Corp. is planning to buy production machinery. This machinery's expected useful life is 5 years,...
Hardware Corp. is planning to buy production machinery. This machinery's expected useful life is 5 years, with a $10,000 salvage value. They require a minimum rate of return of 12%, and have calculated the following data pertaining to the purchase and operation of this machinery: Year Estimated annual cash inflows $ 60,000 80,000 95,000 115,000 140,000 Estimated annual cash outflows $ 10,000 20,000 25,000 35,000 50,000 Depreciation $30,000 $30,000 $30,000 $30,000 $30,000 Determine the Payback Period, Accounting Rate of Return....
Cash payback period, net present value method, and analysis for a service company PR 25-2B Obj....
Cash payback period, net present value method, and analysis for a service company PR 25-2B Obj. 2, 3 Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: EXCEL TEMPLATE Pro Gamer Sound Cellar Year 70,000 55,000 35,000 30,000 30,000 65,000 60,000 25,000 25,000 45,000 Total $220.000 $22000 ct requires an investment of $125,000. A rate of 10% has been selected for the Each produ net present value analysis....
st: Chapter 11/12 Which of the following statements is CORRECT? ation flows to account for the...
st: Chapter 11/12 Which of the following statements is CORRECT? ation flows to account for the time value of money O b. The regular payback does not consider cash flows beyond the payback cutoff, but the discounted payback overcomes this defect. C. The the payback today. d. The regular payback method is useful as an how long it will take to recover the funds invested in the project. al QUESTION 2 les 10 cash flows. Project S has an IRR...
Please help А в Enter titles and accounts in the green cells Enter Numbers in the...
Please help
А в Enter titles and accounts in the green cells Enter Numbers in the blue cells Enter your Calculations in the yellow cells Frankfort Enterprises is trying to select the best investment from among three alternatives to shift and process Kentucy Blue grass seeds. Each alternative involves an initial outlay of $56,500. Their cash flows follow: Evaluate and rank each alternative based on 1) payback period, 2) net present value (use a 12% discount rate) | | -...
5. Which of the following is/are correct? A. If the salvage value is the same as...
5. Which of the following is/are correct? A. If the salvage value is the same as the book value of the asset, then there is a tax effect. B. Book value = initial cost - accumulated depreciation C. After-tax salvage = salvage - Tax Rate x (salvage - book value) D. Both B and C 6. ________ is the most important alternative to Net Present Value. A. IRR B. Payback Method C. Average Accounting Return D. Discounted Payback 7. The...
Please help me solve 4-8 Use the following table to answer questions 1 – 6. The...
Please help me solve 4-8
Use the following table to answer questions 1 – 6. The wacc is 10% for all projects in this table. Year Project A -1,000 1,000 Project B -1,000 300 400 500 600 Project C -1,000 550 450 350 250 Project D -1,000 600 800 1. Compute the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period (PB) for each project: Project A Project B Project C Project D WACC...
Please show me the work and formulas in the assigned cells. Thank you. C D E...
Please show me the work and formulas in the assigned cells.
Thank you.
C D E On the cell B5 enter your PV, on cell B6 the annual retum rate on cell B7 the months of the year, and on the cell B9 calculate the monthly rate. On column C have the years, on column D the months of the year and on column E the periods. Calculate on column F the amount that you will have in your account...
please answer question number 2 Note: Show all of your work to arrive at a final...
please answer question number 2
Note: Show all of your work to arrive at a final result. Use periodic interest factors in the calculation of NPV and IRR 1. At the end of a tax year, a company has the following data: Gross receipts (sales) Cost of goods sold $300,000 $50,000 $15,000 Tax depreciation Book depreciation $8,000 Interest on debt $10,000 What is the company's tax liability (tax) and effective tax rate? 2. For the net cash flows given below,...
1.
part 2
Part 3
File Home Insert Page Layout Formulas Data Rei Arial 12 A A X Cut LECopy Format Painter Paste BIU. A 1.1.1 Clipboard Г Font : с A Year B Cash Inflows (Outflows) 1 1 2 0 3 4 2 5 3 6 4 7 5 8 9 Annual discount rate 10 Net present value 11 Internal rate of return ($200,000) $40,000 $80,000 $38,000 $50,000 $58,000 8.00% $12,015.09 10.23% Applying Excel 8: Calculating internal rate of...
Hardware Corp. is planning to buy production machinery. This machinery's expected useful life is 5 years, with a $10,000 salvage value. They require a minimum rate of return of 12%, and have calculated the following data pertaining to the purchase and operation of this machinery: Year Estimated annual cash inflows $ 60,000 80,000 95,000 115,000 140,000 Estimated annual cash outflows $ 10,000 20,000 25,000 35,000 50,000 Depreciation $30,000 $30,000 $30,000 $30,000 $30,000 Determine the Payback Period, Accounting Rate of Return....
Cash payback period, net present value method, and analysis for a service company PR 25-2B Obj. 2, 3 Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: EXCEL TEMPLATE Pro Gamer Sound Cellar Year 70,000 55,000 35,000 30,000 30,000 65,000 60,000 25,000 25,000 45,000 Total $220.000 $22000 ct requires an investment of $125,000. A rate of 10% has been selected for the Each produ net present value analysis....
st: Chapter 11/12 Which of the following statements is CORRECT? ation flows to account for the time value of money O b. The regular payback does not consider cash flows beyond the payback cutoff, but the discounted payback overcomes this defect. C. The the payback today. d. The regular payback method is useful as an how long it will take to recover the funds invested in the project. al QUESTION 2 les 10 cash flows. Project S has an IRR...
Please help
А в Enter titles and accounts in the green cells Enter Numbers in the blue cells Enter your Calculations in the yellow cells Frankfort Enterprises is trying to select the best investment from among three alternatives to shift and process Kentucy Blue grass seeds. Each alternative involves an initial outlay of $56,500. Their cash flows follow: Evaluate and rank each alternative based on 1) payback period, 2) net present value (use a 12% discount rate) | | -...
Please help me solve 4-8
Use the following table to answer questions 1 – 6. The wacc is 10% for all projects in this table. Year Project A -1,000 1,000 Project B -1,000 300 400 500 600 Project C -1,000 550 450 350 250 Project D -1,000 600 800 1. Compute the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period (PB) for each project: Project A Project B Project C Project D WACC...
Please show me the work and formulas in the assigned cells.
Thank you.
C D E On the cell B5 enter your PV, on cell B6 the annual retum rate on cell B7 the months of the year, and on the cell B9 calculate the monthly rate. On column C have the years, on column D the months of the year and on column E the periods. Calculate on column F the amount that you will have in your account...
please answer question number 2
Note: Show all of your work to arrive at a final result. Use periodic interest factors in the calculation of NPV and IRR 1. At the end of a tax year, a company has the following data: Gross receipts (sales) Cost of goods sold $300,000 $50,000 $15,000 Tax depreciation Book depreciation $8,000 Interest on debt $10,000 What is the company's tax liability (tax) and effective tax rate? 2. For the net cash flows given below,...
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