Year |
Annual Cashn Flows (A) |
PVF @ 12% (B) |
Present Value of Annual Cash inflows (A x B ) |
1 | $ 784,000 | 0.893 | $ 700,112 |
2 | $ 598,000 | 0.797 | $ 476,606 |
3 | $ 598,000 | 0.712 | $ 425,776 |
4 | $ 598,000 | 0.636 | $ 380,328 |
5 | $ 784,000 | 0.567 | $ 444,528 |
Total Present Value of Annual Cash inflows | $ 2,427,350 | ||
Less: Amount Invested | ($ 2,020,000) | ||
Net Present Value of Project | $ 407,350 | ||
Option (A) is Correct |
question 25 please solve The following details are provided by Beckett Company: Initial investment $2,020,000 Discount...
need an asnwer asap please Candela Cable Company is considering investing $835,000 in telecommunication equipment that has an estimated life of five years with no residual value. The cash flows are as shown below Year 1 $255,000 360,000 380,000 100,000 The present value of $1: 10% 11% 1 0.900 0.901 2 0.626 0.812 3 0.751 0.731 4 0.683 0.659 12% 0 893 0.797 0.712 0.636 13% 0 885 0.783 0.693 0.613 14% 0.877 0.769 0.675 0.592 O A. more than...
Can an expert please help me solve the question above? Please show work. Glossimer Thread Company ls evaluating investment that will cost $755,000 and will yleld cash inflows of $240,000 in the first year, $340,000 In the second year, and S370,000 in the third and the final year. Use the table below and determine the internal rate of return Present value of S1: 9% 10% 11% 12% 1 n 926 0.917 0.909 0.901 0.893 2 0.857 0.842 0.826 0.812 0.797...
A. Using the following partial table of present value of $1 at compound Interest, the present value of $79,077 to be received three years hence with earnings at the rate of 6% a year is (round to two decimal points). Year 6% 10% 12% 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 4 0.792 0.683 0.636 $66,424.68 $50,292.97 $54,009.59 $62,628.98 B.Use these present value table to answer the question that follow Below is a table for the present...
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information: New Truck $ 37,000 Purchase cost new Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now Present Truck $ 29.000 $ 16,000 $ 15,000 $ 15,000 $ 8.000 $ 7,000 $ 12,500 $ 11,000...
Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacturee and sell one of two new products for a five- year period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 20 % each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B Initial investment : $220,000 $410,000 Cost of equipment (zero salvage value) Annual revenues and...
Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables...
Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402...
Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables...
Calculator Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables...
Following is a table for the present value of $1 at compound interest: Year 6% 10% 1296 1 0.943 0.009 close 0.893 0.797 2 0.890 0.826 3 0.840 0.751 0.712 4 0.792 0.683 0.621 0.636 0.567 5 0.747 Following is a table for the present value of an annuity of $1 at compound interest: Year 69 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the...