Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=130,000/1.12+90,000/1.12^2+140,000/1.12^3+130,000/1.12^4+94000/1.12^5+80,000/1.12^6
=(130,000*0.893)+(90,000*0.797)+(140,000*0.712)+(130,000*0.636)+(94000*0.567)+(80,000*0.507)
=464038
NPV=Present value of inflows-Present value of outflows
=464038-300,000
=$164038
Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment...
pls help Coyne Corporation is evaluating O p portunity. This project would require an investment of $35.000 D o life of the equipment is 4 years. The new project is expected to generate additional net casinows of $18.000 per year for each of the four y n The equipment will have a residual wale wt the end of its we $3000. The Coyne's required to retums 10% The present value of this project is m ) k the icon to...
Eon Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $915,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows.) (Click the icon to view Present Value of $1 table.) 3 (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Compute this project's NPV using Eon's 16% hurdle rate. Should...
Sommer Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $410,000. Projected net cash inflows from the equipment are as follows: Year 1 $115,000 Year 2 $100,000 Year 3 $110,000 Year 4 $100,000 Year 5 $95,000 Year 6 $90,000 Sommer Corporation's hurdle rate is 12%. Assume the residual value is zero. Which one of the following amounts is the net present value of the Sommer Corporation equipment? A....
Nord Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $900,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Use the following table to calculate the net present value of the project....
Annual cash flows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment. LOADING...(Click the icon to view the competing investment opportunities.) LOADING...(Click the icon to view the Present Value of $1 table.) LOADING...(Click the icon to view the Present Value of Annuity of $1 table.) Requirement 1. Assuming a 14% interest rate, which investment opportunity would you choose? Begin by computing the present value of each investment opportunity. (Assume that the annual cash...
Question 1. A. B. Future Value of $1 Periods 4% 1.040 1.082 5% 6% 7% 8% 9% 10% 12% 14% 16% 1.060 1.124 1.070 1.140 1,300 1 1.050 1.103 1.158 1.080 1.090 1.100 1.210 1.120 1.254 1.160 2 1.145 1.166 1.188 1.346 1.191 1.405 3 1.125 1.170 1.225 1.311 1,403 1.260 1,295 1.331 1.464 1,482 1.561 1.811 2.100 1.689 1.925 4 1.216 1.262 1.360 1.412 1.574 1.338 1,539 5 1.217 1.276 1.469 1,611 1.762 1.772 1.949 1.265 1.316 2.195 2.502...
Broadway Industries is considering whether to automate one phase of its production line. The automation equipment has a six year life with no residual and will cost $890,000. Projected net cash flows are as follows: Year 1 $ 250,000 Year 2 240,000 Year 3 210,000 Year 4 205,000 Year 5 200,000 Year 6 180,000 Requirement 1 : Compute this project’s Net Present Value (NPV) using Broadway’s 10% hurdle (required) rate. Should Broadway invest in the automation equipment? Year Net Cash...
Broadway Industries is considering whether to automate one phase of its production line. The automation equipment has a six - year life with no residual and will cost $890,000. Projected net cash flows are as follows: Year 1 $ 250,000 Year 2 240,000 Year 3 210,000 Year 4 205,000 Year 5 200,000 Year 6 180,000 Requirement 1 : Compute this project’s Net Present Value (NPV) using Broadway’s 10% hurdle (required) rate. Should Broadway invest in the automation e quipment? Year...
present value Calculate the present value of the following amounts: 1. $5,000 at the end of five years at 6% 2. $5,000 a year at the end of the next five years at 6% (lf using present value tables, use factor amounts rounded to three decimal places, X.XX. Round your final answers to the nearest whole dollar) (Click the icon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Annuity of 51 table.)...
Calculate the present value of the following amounts: 1. $14 comma 00014,000 at the end of tenten years at 88% 2. $14 comma 00014,000 a year at the end of the next tenten years at 88% (If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round your final answers to the nearest whole dollar.) LOADING... (Click the icon to view Present Value of $1 table.) LOADING... (Click the icon to view Present Value of Ordinary...