Do It! Review 12-4
Wayne Company is considering a long-term investment project
called ZIP. ZIP will require an investment of $133,340. It will
have a useful life of 4 years and no salvage value. Annual cash
inflows would increase by $88,300, and annual cash outflows would
increase by $43,100. The company’s required rate of return is 12%.
Click here to view PV table.
Calculate the internal rate of return on this project.
(Round answers to 0 decimal places,
e.g. 15%.)
Internal rate of return on this project is between % and %. |
Determine whether this project should be accepted?
The project
shouldshould not be accepted. |
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Do It! Review 12-4 Wayne Company is considering a long-term investment project called ZIP. ZIP will...
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,913. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $84,400, and annual cash outflows would increase by $40,100. The company's required rate of return is 12%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%.) Internal rate of return...
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding...
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,300. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.50.) Cash payback period : Question 6 Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of...
Coronado Company is considering a long-term investment project called ZIP. ZIP will require an investment of $122,200. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,800, and annual cash outflows would increase by $39,900. The company’s required rate of return is 11%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding...
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $121,720. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $80,100, and annual expenses (excluding depreciation) would increase by $40,100. Wayne uses the straight-line method to compute depreciation expense. The company’s required rate of return is 13%. Compute the annual rate of return Anual rate of return ____% Determine whether the project is acceptable? Accept/Reject...
Bonita Company is considering a long-term investment project called ZIP, ZIP will require an investment of $122,100. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,500, and annual cash outflows would increase by $39,800. The company's required rate of return is 12%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding...
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $121,840. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,300 and annual expenses (excluding depreciation) would increase by $39,800. Wayne uses the straight-line method to compute depreciation expense. The company's required rate of return is 12%. Compute the annual rate of return. (Round answer to 0 decimal places, e.g. 15%.) Annual rate of return...
Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $116,000. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,020, and annual expenses (excluding depreciation) would increase by $39,000. Wayne uses the straight-line method to compute depreciation expense. The company's required rate of return is 16%. Compute the annual rate of return. Annual rate of return 이 Determine whether the project is acceptable? the...
Do It Review 26-4 Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $106,145. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $82,700, and annual cash outflows would increase by $47,200. The company's required rate of return is 12 %. Click here to view PV table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g....
Do It Review 26-2 Your answer is partially correct. Try again. Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $129,984. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,600, and annual cash outflows would increase by $38,300. The company's required rate of return is 11%. Click here to view PV table. Calculate the net present value on this project. (If the...