Investment = 26,840 | |||
life of project = 3 years | |||
Cost of capital = 12% | |||
Salvage value = 0 | |||
Year | Cash flows | PVF @ 12% | PV cashflow |
0 | -26840 | 1.0000 | (26,840) |
1 | 8540 | 0.8929 | 7,625 |
2 | 10980 | 0.7972 | 8,753 |
3 | 14640 | 0.7118 | 10,420 |
NPV | (41) |
Bramble's Custom Construction Company is considering three new projects, each requiring an equipment investment of $26,840....
Bramble's Custom Construction Company is considering three new projects, each requiring an equipment investment of $26,840. Each project will last for 3 years and produce the following net annual cash flows. Year - 2 AA $8,540 10,980 14,640 $34,160 BB $12,200 12,200 12,200 $36,600 CC $15,860 14,640 13,420 $43,920 Total The equipment's salvage value is zero, and Bramble uses straight-line depreciation. Bramble will not accept any project with a cash payback period over 2 years. Bramble's required rate of return...
Doug’s Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,440. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $7,140 $10,200 $13,260 2 9,180 10,200 12,240 3 12,240 10,200 11,220 Total $28,560 $30,600 $36,720 The equipment’s salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug’s required rate of...
Doug’s Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,320. Each project will last for 3 years and produce the following net annual cash flows. The equipment’s salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug’s required rate of return is 12%. Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,320. Each...
Exercise 26-2 Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,080. Each project will last for 3 years and produce the following net annual cash flows. Year 1 2 3 Total AA $7,980 10,260 13,680 $31,920 BB $11,400 11,400 11,400 $34,200 CC $14,820 13,680 12,540 $41,040 The equipment's salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug's required...
Hurricane Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. Year АА $ 7,000 9,000 15,000 $31,000 BB $ 9,500 9,500 9,500 $28,500 CC $11,000 10,000 9,000 $30,000 Total The equipment's salvage value is zero. Hurricane uses straight-line depreciation. Hurricane will not accept any project with a payback period over 2 years. Hurricane's minimum required rate of return is 12%. Instructions (a)...
Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $25,960. Each project will last for 3 years and produce the following net annual cash flows. Year 1 2 3 Total AA $8,260 10,620 14,160 $33,040 BB $11,800 11,800 11,800 $35,400 CC $15,340 14,160 12,980 $42,480 The equipment's salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug's required rate of...
Cepeda Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. Year AA BB CC 1 $7,000 $9,500 11,000 9,000 9,500 10,000 15,000 9,500 9,000 Total $31,000 28,500 $30,000 The equipment's salvage value is zero. Cepeda uses straight-line depreciation. Cepeda will not accept any project with a payback period over 2 years. Cepeda's minimum required rate of return is 12%.
B098nodule itemid-3014778 Doug's Custom Construction Company is considering three new projects,each requiring an equipment project will last for 3 years and produce the following net annual cash flows t of $25,520. Each Year AA 1 $8,120 $11,600 $15,080 2 10,440 11,600 13,920 313,920 11,600 12,760 Total $ 32,480 $ 34,800 $41.760 The equipment's salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug's required rate of...
Question 1 viera corporation is considering investing in a new facility. The estimated cost of the facility is $2,043,938. It will be used for 12 years, then sold for $715,200. The facility will generate annual cash inflows of $384,300 and will need new annual cash outflows of $150,800. The company has a required rate of return of 7%. Click here to view.py table. Calculate the internal rate of return on this project. (Round answer to o decimal place, e.g. 23.)...
Ignment > Open Assignment CALCULATOR FULL SCREEN PRINTER VERSION « BACK NEX Exercise 25-02 (Video) Crane's Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,220. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $7,070 $10,100 $13,130 2 9 ,090 10,100 12,120 3 12,120 10,100 11,110 Total $28,280 $30,300 $36,360 The equipment's salvage value is zero, and Crane uses straight-line depreciation. Crane will...