Net present value for investment A = -$50,000 + $10,000/1.15 + $11,000/1.152 + $13,000/1.153 + $16,000/1.154 + $30,000/1.155
Net present value for investment A = -$375.70
12-1 Assume a $50,000 investment and the following cash flows for two alternatives: (Negative answers should...
Assume a $45,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $10,000 $15,000 2 15,000 25,000 3 10,000 10,000 4 20,000 — 5 20,000 — a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Which alternative would you select under the payback method? Investment X Investment Y
Assume a $72,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $22,000 $32,000 2 20,000 25,000 3 25,000 20,000 4 10,000 — 5 30,000 — a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment X Years Investment Y Years
Assume a $100,000 investment and the following cash flows for two alternatives. Year л во мн Investment X $30,000 35,000 25,000 20,000 15,000 Investment Y $50,000 40,000 30,000 a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment X years years Investment Y b. Which alternative would you select under the payback method? Investment X Investment Y
Assume a $42,000 investment and the following cash flows for two alternatives: Year Investment A Investment B 1 $15,000 $22,000 2 10,000 10,000 3 10,000 10,000 4 15,000 — 5 20,000 — Calculate the payback period for investment A and investment B. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Payback period Investment A years Investment B years Which of the alternatives would you select under the payback method? Investment A Investment B
Assume a $62,000 investment and the following cash flows for two alternatives: Year Investment A Investment B 1 $20,000 $25,000 2 12,000 15,000 3 15,000 22,000 4 15,000 — 5 4,600,000 — Calculate the payback for investment A and B. (Round the final answers to 2 decimal places.) Payback period Investment A years Investment B years Which of the alternatives would you select under the payback method? Investment A Investment B
Assume a $52,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $ 12,000 $ 20,000 2 18,000 25,000 3 15,000 17,000 4 10,000 — 5 15,000 — a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Payback Investment X years Investment Y years b. Which alternative would you select under the payback method? Investment X Investment Y
Assume a $60,000 investment and the following cash flows for two alternatives. Year Investment X $20,000 15,000 15,000 20,000 25,000 Investment Y $25,000 25,000 15,600 a. Calculate the payback for investment X and Y (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment X years Investment Y Iyears b. Which alternative would you select under the payback method? Investment X Investment Y
Assume a $40,000 investment and the following cash flows for two alternatives. Year Investnent x Investment Y 9 6,000 8,000 9,000 17,000 20,000 $ 15,000 20,000 10,000 late the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Payback nvestment X years nvestment Y years b. Which alternative would you select under the payback method? Investment Х. Investment Y
A-12 Present Value of Cash Flows Star City is considering an investment in the community center that is expected to return the following cash flows: Use Exhibit A.8 Year 2 4 Net Cash Flow S 24,000 54,000 84,000 84,000 104,000 This schedule includes all cash inflows from the project, which will also require an immediate $204,000 cash outlay. The city is tax-exempt; therefore, taxes need not be considered. Required: a. What is the net present value of the project if...
QUESTION 1 Star Industries is considering three alternative projects for the company's investment. The cash flows for three independent projects are as follows: Year 1 Project A ($50,000) $10,000 $15,000 $20,000 $25,000 $30,000 Project B ($100,000) $25,000 $25,000 $25,000 $25,000 $25,000 Project C ($450,000) $200,000 $200,000 $200,000 a) If the discount rate for all three projects is 9.5 percent, calculate the profitability index (PI) of these three projects. Which project will be accepted if the projects are mutually exclusive? b)...