ou have deposited $12,710 in a special account that has a guaranteed rate of return. If you withdraw $3,100 at the end of each year for 5 years, you will completely exhaust the balance in the account. The guaranteed rate of return is closest to: (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
ou have deposited $12,710 in a special account that has a guaranteed rate of return. If you withdraw $3,100 at the end o...
You have deposited $7,620 in a special account that has a guaranteed rate of return of 19% per year. If you are willing to completely exhaust the account, what is the maximum amount that you could withdraw at the end of each of the next 7 years? Select the amount below that is closest to your answer. (ignore income taxes.) Click here to view Exhibit 128-1 and Exhibit 120.2. to determine the appropriate discount factor(s) using the tables provided
You have deposited $15,336 in a special account that has a guaranteed interest rate. If you withdraw $3,200 at the end of each year for 6 years, you will completely exhaust the balance in the account. The guaranteed interest rate is (rounded to 2 decimal places):
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 9 years with no salvage value at the end of the 9 years. Ataxia's internal rate of return on this equipment is 8%. Ataxia's discount rate is also 8%. The payback period on this equipment is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables...
Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life 10 years Yearly net cash inflow $ 90,000 Salvage value $ 0 Internal rate of return 12 % Required rate of return 8 % Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. The initial cost of the equipment is closest to:
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 9 years with no salvage value at the end of the 9 years. Ataxia's internal rate of return on this equipment is 8%. Ataxia's discount rate is also 8%. The payback period on this equipment is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables...
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 39,500 Annual cash inflows $ 9,800 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s)...
Domebo Corporation has entered into a 5 year lease for a piece of equipment. The annual payment under the lease will be $2,100, with payments being made at the beginning of each year. If the discount rate is 11%, the present value of the lease payments is closest to ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.) Multiple...
Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem.) Useful life 8 years Yearly net cash inflow $70,000 Salvage value $0 Internal rate of return 17% Required rate of return 13% Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. The initial cost of the equipment is closest to: (Round discount factor(s) to 3 decimal places)
. The management of Penfold Corporation is considering the purchase of a machine that would cost $430,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $95,000 per year. The company requires a minimum pretax return of 13% on all investment projects. Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project...
Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $281,663, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $83,000 per year. The Internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.): Click here to view Exhibit 138-1 and Exhibit 13B-2, to determine the appropriate discount factor(s)...