Homework Answers
Solution :
Proposal Y Invstement = $494,000
Annual Net Cash Inflow = $83,000
Pay Back Period = Investment cost / Annual Net Cash Inflow
= $494,000 / $83,000
=5.95 Years.
Therefore, Payback period for Proposal Y is 5.95 Years
Option (A) 5.95 Years is the correct Option.
Add Answer to:
8 years Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X...
Jameson Manufacturing is considering two alternative investment proposals with the following details: Proposal A Proposal B...
Jameson Manufacturing is considering two alternative investment proposals with the following details: Proposal A Proposal B Investment, today $550,000 $275,000 Useful life 5 years 4 years Estimated annual net cash inflows $150,000 $90,000 Residual value $50,000 $0 Depreciation method Straight-line Straight-line Discount rate 10% 9% You have been hired as a capital budgeting expert. You are to recommend to the senior management of Jameson the best investment option. What proposal do you recommend? You must support your answer. Jameson has...
Question 4 Nubela Manufacturing is considering two alternative investment proposals with the following data: Not yet...
Question 4 Nubela Manufacturing is considering two alternative investment proposals with the following data: Not yet answered Marked out of 2.00 P Flag question Proposal X Proposal Y Investment $10,700,000 $580,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,140,000 $103,000 Residual value $50,000 $26,000 Depreciation method Straight-line Straight-line Required rate of return 12% 13% Calculate the payback period for Proposal X Select one: O A 8 years OB. 4 years O c. 9...
Rocco Manufacturing is considering following two investment proposals: Proposal X Proposal Y Investment $740,000 $508,000 Useful...
Rocco Manufacturing is considering following two investment proposals: Proposal X Proposal Y Investment $740,000 $508,000 Useful life 5 years 4 years Estimated annual net cash inflows received at the end of each year $154,000 $92,000 Residual value $66,000 $0 Depreciation method Straight-line Straight-line Annual discount rate 10% 9% Compute the present value of the future cash inflows from Proposal X. Present value of an ordinary annuity of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3...
Stellan Manufacturing is considering the following two investment proposals: Proposal X Proposal Y Investment $ 724...
Stellan Manufacturing is considering the following two investment proposals: Proposal X Proposal Y Investment $ 724 comma 000$724,000 $ 510 comma 000$510,000 Useful life 5 years 4 years Estimated annual net cash inflows received at the end of each year $ 158 comma 000$158,000 $ 106 comma 000$106,000 Residual value $ 66 comma 000$66,000 $0 Depreciation method Straightminus−line Straightminus−line Annual discount rate 10% 9% Present value of an ordinary annuity of $1: 8% 9% 10% 1 0.926 0.917 0.909 2...
Question 29 Tiberius Manufacturing is considering two alternative investment proposals with the following data: Not yet...
Question 29 Tiberius Manufacturing is considering two alternative investment proposals with the following data: Not yet answered Marked out of 2.00 P Flag question Proposal x Proposal Y Investment $10,500,000 $500,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,100,000 $105,000 Residual value $52,000 $32,000 Depreciation method Straight-line Straight-line Required rate of return 13% 12% Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two...
Oliver Enterprises has collected the following data for one of its products: Direct materials standard (8...
Oliver Enterprises has collected the following data for one of its products: Direct materials standard (8 pounds per unit @ $0.5ОЛЬ.) Direct materials flexible budget variance-unfavorable Actual Direct Materials Used (AQU) Actual finished goods produced $4.00 per finished good $14,000 31,000 pounds 20,000 units How much is the direct materials quantity variance? O A. $80,000 favorable O B. $80,000 unfavorable O C. $15,500 unfavorable O D. $64,500 favorable Redwood Corporation is considering two alternative investment proposals with the following data:...
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
please help so i may know how to do for test Kennedy is considering following two...
please help so i may know how to do for test
Kennedy is considering following two investment proposals: Proposal X Proposal Y Investment $740,000 $508,000 Useful life 5 years 4 years Estimated annual net cash inflows received at the end of each year $154,000 $92,000 Residual value $66,000 Depreciation method Straight-line Straight-line Annual discount rate 9% Compute the present value of the future cash inflows from Proposal X Select one: O A. $762,136 O B. $668,128 O C. $583,814 O...
9 Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C...
9 Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 96,000 $ 120,000 $ 72,000 $ 90,000 Present value of future net cash flows $ 115,200 $ 180,000 $ 100,800 $ 168,000 If the project profitability index is used, the ranking of the projects from most to least profitable would be: 16 oetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in...
Matthew Corporation is adding a new product line that will require an investment of $204,000. The...
Matthew Corporation is adding a new product line that will require an investment of $204,000. The product line is estimated to generate cash inflows of $32,000 the first year, $25,000 the second year, and $21,000 each year thereafter for ten more years. What is the payback period? O A. 9.84 years O B. 9.37 years O c. 7.78 years O D. 9 years The Silverside Company is considering investing in two alternative projects: Project 2 $260,000 Investment Useful life (years)...
Question 4 Nubela Manufacturing is considering two alternative investment proposals with the following data: Not yet answered Marked out of 2.00 P Flag question Proposal X Proposal Y Investment $10,700,000 $580,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,140,000 $103,000 Residual value $50,000 $26,000 Depreciation method Straight-line Straight-line Required rate of return 12% 13% Calculate the payback period for Proposal X Select one: O A 8 years OB. 4 years O c. 9...
Question 29 Tiberius Manufacturing is considering two alternative investment proposals with the following data: Not yet answered Marked out of 2.00 P Flag question Proposal x Proposal Y Investment $10,500,000 $500,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,100,000 $105,000 Residual value $52,000 $32,000 Depreciation method Straight-line Straight-line Required rate of return 13% 12% Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two...
Oliver Enterprises has collected the following data for one of its products: Direct materials standard (8 pounds per unit @ $0.5ОЛЬ.) Direct materials flexible budget variance-unfavorable Actual Direct Materials Used (AQU) Actual finished goods produced $4.00 per finished good $14,000 31,000 pounds 20,000 units How much is the direct materials quantity variance? O A. $80,000 favorable O B. $80,000 unfavorable O C. $15,500 unfavorable O D. $64,500 favorable Redwood Corporation is considering two alternative investment proposals with the following data:...
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
please help so i may know how to do for test
Kennedy is considering following two investment proposals: Proposal X Proposal Y Investment $740,000 $508,000 Useful life 5 years 4 years Estimated annual net cash inflows received at the end of each year $154,000 $92,000 Residual value $66,000 Depreciation method Straight-line Straight-line Annual discount rate 9% Compute the present value of the future cash inflows from Proposal X Select one: O A. $762,136 O B. $668,128 O C. $583,814 O...
Matthew Corporation is adding a new product line that will require an investment of $204,000. The product line is estimated to generate cash inflows of $32,000 the first year, $25,000 the second year, and $21,000 each year thereafter for ten more years. What is the payback period? O A. 9.84 years O B. 9.37 years O c. 7.78 years O D. 9 years The Silverside Company is considering investing in two alternative projects: Project 2 $260,000 Investment Useful life (years)...
Most questions answered within 3 hours.
-
Write the ionic equations for the first stage of salts
hydrolysis.
Anion, Cation?
Na2S
NiSO4
K2SO4...
asked 24 minutes ago -
suppose there is a normally distributed population with a mean of
250 and a standard deviation...
asked 1 hour ago -
Question Three
Suppose you as project manager are using the Waterfall
development methodology on a large...
asked 2 hours ago -
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 2 hours ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 3 hours ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 3 hours ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 3 hours ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 3 hours ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 3 hours ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 4 hours ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 4 hours ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 4 hours ago