20 | Answer B | |||||
Year | Cash Flow | PVF @ 10% | Discounted Cash flow | |||
1 | 84,000 | 0.909 | 76,356 | |||
2 | 84,000 | 0.826 | 69,384 | |||
3 | 84,000 | 0.751 | 63,084 | |||
2,08,824 | ||||||
21 | Answer D | |||||
Year | Cash Flow | PVF @ 9% | Discounted Cash flow | |||
0 | (3,50,000) | 1.000 | (3,50,000) | |||
1 | 1,40,000 | 0.917 | 1,28,380 | |||
2 | 1,40,000 | 0.842 | 1,17,880 | |||
3 | 1,40,000 | 0.772 | 1,08,080 | |||
4,340 | ||||||
22 | IRR is 9% | |||||
Year | Cash Flow | PVF @ 8% | Discounted Cash flow | PVF @ 9% | ||
0 | (1,36,674) | 1.000 | (1,36,674) | 1.000 | (1,36,674) | |
1 | 54,000 | 0.926 | 50,004 | 0.917 | 49,518 | |
2 | 54,000 | 0.857 | 46,278 | 0.842 | 45,468 | |
3 | 54,000 | 0.794 | 42,876 | 0.772 | 41,688 | |
2,484 | - |
questions 20 , 21 , 22 Acct 102 Practice Test #5.pdf Download ?Info ×Close Page >...
22. Use the following table, Present Value of an Annuity of 1 Period 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $329030 and is expected to generate cash inflows of $130000 each year for three years. The approximate internal rate of return on this project is a) the IRR on this project cannot...
Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $219000 and is expected to generate cash inflows of $88000 at the end of each year for three years. The net present value of this project is $222728. $44000. $22273. $3728.
Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $80000 and is expected to generate cash inflows of $25000 at the end of each year for three years. The profitability index for this project is 1.27. 1.00. 0.78. 0.79.
Present Value of an Annuity of 1 Periods 8% 9% 10% 1 .926 .917 .909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $210,000 and is expected to generate cash inflows of $84,000 at the end of each year for three years. The net present value of this project is Group of answer choices $212,604. $42,000. $21,261. $2,604.
Multiple Choice Question 58 Use the following table, Present Value of an Annuity of 1 Period 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $350000 and is expected to generate cash inflows of $150000 at the end of each year for three years. The net present value of this project is $29650. $75000....
19. Monty Company is considering buying a machine for $340000 with an estimated life of 10 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $6000 each year. The cash payback period on this investment is 28.33 years. 5.67 years. 8.50 years. 10.00 years. 20. Use the following table, Present Value of an Annuity of 1 Period 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759...
Instructions: Use of a regular calculator and a formula sheet is allowed. There are 20 multiple choice questions, all questions are compulsory, and carry equal points. 1) The internal rate of return is A) the discount rate that makes the NPV positive. B) the discount rate that equates the present value of the cash inflows with the present value of the cash outflows. C) the discount rate that makes NPV negative and the PI greater than one. D) the rate...
Question 3 W Project Boyaz is expected to generate $24,000 each year for the next four years. It will cost $60,000 to implement the project today. If the project's required rate of return is 12%, what is its internal rate of return? 11.59% 14.40% 18.93% 21.86% Question 5 10 points Save Answer Deckland Corp. is considering a new project that will cost $250,000 to implement. If accepted, it will generate after-tax cash flows of $60,000 in year one, $100,000 in...
Monterey company is considering investing in two new vans that
are expected to generate combined cash inflows of $30,000 per year.
The vans combined purchase price is $93,000. The expected life and
salvage value of each or four years and $23,000, respectively.
Monterey has an average cost of capital of 7%.
a. calculate the net present value of the investment
opportunity.
b. indicate whether the investment opportunity is expected to
earn a return that is above or below the cost...
QUESTION 2 (20) 2.1. Consider two projects whose cash inflows are not even. Assume that the project costs R190 000. The net cash inflows for each year is as follows: Year Project B R30 000,00 R35 000,00 R62 000,00 R75 000,00 R100 000,00 R105 000,00 Project C R95 000,00 R85 000,00 R50 000,00 R20 000,00 REQUIRED 2.1.1 Calculate the payback period of each project and recommend which project should be selected based on the payback period. (6) 2.2. Glens Ltd...