Homework Answers
| Cash Flow | Amount | PV Factor | Present value | |
| Annual | PV of Annuity | 261666.6667 | 4.1114 | 1,075,816.33 |
| Residual | PV | 11400 | 0.5066 | 5,775.24 |
| Present value of inflows | 1,081,591.57 | |||
| Cash Outflows | 580,000.00 | |||
| NPV | 501,591.57 | |||
| Since depreciation is a non-cash expense, it is added back to net income to calculated cash flows | ||||
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Assume the company requires a 12% rate of return on its investments. Assume the company requires a 12% rate of retu...
5. Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate fact...
5. Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) A new operating system for an existing machine is expected to cost $530,000 and have a useful life of six years. The system yields an incremental after-tax income of $200,000 each year after deducting its straight-line depreciation. The...
A new operating system for an existing machine is expected to cost $780,000 and have a...
A new operating system for an existing machine is expected to cost $780,000 and have a useful life of six years. The system yields an incremental after-tax income of $285,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,400. A machine costs $420,000, has a $36,500 salvage value, is expected to last eight years, and will generate an after-tax income of $88,000 per year after straight-line depreciation. Assume the company requires a 12%...
a. A new operating system for an existing machine is expected to cost $565,000 and have...
a. A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system ylelds an incremental after-tax Income of $165.000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000. b. A machine costs $410,000, has a $26,000 salvage value, is expected to last eight years, and will generate an after-tax Income of $75,000 per year after straight-line depreciation. Assume the company requires...
Required information [The following information applies to the questions displayed below) A company is investing in...
Required information [The following information applies to the questions displayed below) A company is investing in a solar panel system to reduce its electricity costs. The system requires a ay. The system is expected to generate net cash flows of $10,615 per year for the next 35 years. The investment has zero salvage value. The company requires an 7% return on its investments. 1-a. Compute the net present value of this investment (PV of $1. FV of $1, PVA of...
! Required information [The following information applies to the questions displayed below.] A company is considering...
! Required information [The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will generate annual cash flows of $21,000 for the next three years. Assume the company uses an 8% discount rate. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart...
Park Co. is considering an investment that requires immediate payment of $32,500 and provides expected cash...
Park Co. is considering an investment that requires immediate payment of $32,500 and provides expected cash inflows of $11,800 annually for four years. If Park Co. requires a 5% return on its investments. What is the net present value of this investment? (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) 1-a Cash Flow Select Chart Amountx x PV FactorPresent Value Annual cash flow 0 Net present value 1-b...
please answer this question thanks Required information [The following information applies to the questions displayed below.)...
please answer this question thanks
Required information [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $22,355 and provides expected cash inflows of $6,600 annually for four years. Park Co. requires a 6% return on its investments. 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your...
Homework 5 wing is Information On Two Alternative invest Chape.com *5 i Help S a. A...
Homework 5 wing is Information On Two Alternative invest Chape.com *5 i Help S a. A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,200. b. A machine costs $430,000, has a $31,700 salvage value, is expected to last eight years, and will generate...
Park Co. is considering an investment that requires immediate payment of $30,500 and provides expected cash...
Park Co. is considering an investment that requires immediate payment of $30,500 and provides expected cash inflows of $11,000 annually for four years. What is the investment's payback period? Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period Required information [The following information applies to the questions displayed below.] Park Co. is considering an investment that requires immediate payment of $30,490 and provides expected cash inflows of $8,800 annually for four years. Park Co. requires a 5% return on...
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(184,325) Project B $(157,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,000 41,000 89, 295 80,400 55,000 42,000 45,000 64,000 75,000 38,000 a. For each alternative project...
a. A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system ylelds an incremental after-tax Income of $165.000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000. b. A machine costs $410,000, has a $26,000 salvage value, is expected to last eight years, and will generate an after-tax Income of $75,000 per year after straight-line depreciation. Assume the company requires...
Required information [The following information applies to the questions displayed below) A company is investing in a solar panel system to reduce its electricity costs. The system requires a ay. The system is expected to generate net cash flows of $10,615 per year for the next 35 years. The investment has zero salvage value. The company requires an 7% return on its investments. 1-a. Compute the net present value of this investment (PV of $1. FV of $1, PVA of...
! Required information [The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will generate annual cash flows of $21,000 for the next three years. Assume the company uses an 8% discount rate. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart...
Park Co. is considering an investment that requires immediate payment of $32,500 and provides expected cash inflows of $11,800 annually for four years. If Park Co. requires a 5% return on its investments. What is the net present value of this investment? (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) 1-a Cash Flow Select Chart Amountx x PV FactorPresent Value Annual cash flow 0 Net present value 1-b...
please answer this question thanks
Required information [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $22,355 and provides expected cash inflows of $6,600 annually for four years. Park Co. requires a 6% return on its investments. 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your...
Homework 5 wing is Information On Two Alternative invest Chape.com *5 i Help S a. A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $220,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $23,200. b. A machine costs $430,000, has a $31,700 salvage value, is expected to last eight years, and will generate...
Park Co. is considering an investment that requires immediate payment of $30,500 and provides expected cash inflows of $11,000 annually for four years. What is the investment's payback period? Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period Required information [The following information applies to the questions displayed below.] Park Co. is considering an investment that requires immediate payment of $30,490 and provides expected cash inflows of $8,800 annually for four years. Park Co. requires a 5% return on...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(184,325) Project B $(157,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,000 41,000 89, 295 80,400 55,000 42,000 45,000 64,000 75,000 38,000 a. For each alternative project...
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