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Question 2 0.4 out of 1 points Howard Company has a machine with a four year...
CARDINAL COMPANY IS CONSIDERING A FIVE-YEAR PROJECT THAT WOULD REQUIRE A $2,975,000 INVESTMENT IN EQUIPMENT WITH...
CARDINAL COMPANY IS CONSIDERING A FIVE-YEAR PROJECT THAT WOULD REQUIRE A $2,975,000 INVESTMENT IN EQUIPMENT WITH A USEFUL LIFE OF YEARS AND NO SALVAGE VALUE. THE COMPANY'S DISCOUNT RATE IS 14%. THE PROJECT WOULD PROVIDE NET OPERATING INCOME EACH OF THE FIVE YEARS AS FOLLOWS: SALES $2,735,000 VARIABLE EXPENSES 1,000,000 CONTRIBUTION MARGIN 1,735,000 FIXED EXPENSES: ADVERTISING, SALARIES, AND OTHER FIXED OUT OF POCKET EXPENSES $735,000 DEPRECIATION $ 95,000 TOTAL FIXED EXPENSES $1,330,000 NET OPERATING INCOME $405,000 1....
value 0.50 points A company can buy a machine that is expected to have a three-year...
value 0.50 points A company can buy a machine that is expected to have a three-year life and a $39,000 salvage value. The machine will cost $1,836,000 and is expected to produce a $209,000 after-tax net Income to be recelved at the end of each year. If a table of present values of 1 at 12% shows values of 0.8929 for one year, 0.7972 for two years, and 0.7118 for three years, what is the net present value of the...
Please answer b-h Choo Choo Inc. is a manufacturer of model trains. The company is considering...
Please answer b-h Choo Choo Inc. is a manufacturer of model trains. The company is considering the purchase of an industrial 3D printer, which will allow the firm to produce custom-made model trains for its high-end customers. The printer will cost $2,500,000, and it is expected to produce net cash flows of $600,000 per year for the next six years. Liquidation of the equipment will net the firm $350,000 in cash at the end of six years. The firm requires...
Choo Choo Inc. is a manufacturer of model trains. The company is considering the purchase of...
Choo Choo Inc. is a manufacturer of model trains. The company is considering the purchase of an industrial 3D printer, which will allow the firm to produce custom-made model trains for its high-end customers. The printer will cost $2,500,000, and it is expected to produce net cash flows of $600,000 per year for the next six years. Liquidation of the equipment will net the firm $350,000 in cash at the end of six years. The firm requires a 15% rate of...
The Green Machine Company buys a $250,000 machine to generate revenue of $60,000/yr for five years....
The Green Machine Company buys a $250,000 machine to generate
revenue of $60,000/yr for five years. At the end of the fifth year
the machine is sold for $60,000.What is the net present value of
this project? Assume the company wants 10% ROI on investments
(their discount rate).
Answer should be in this format in Excel. Functions must be used
to solve (IRR, RATE, PV, FV, PMT, etc.)
7) Data Comment yearly investment years of investment (2,500) 20 6% ROI...
BAF 2104: FINANCIAL MANAGEMENT 1 CAT QUESTION ONE A company is considering an investment proposal to...
BAF 2104: FINANCIAL MANAGEMENT 1 CAT QUESTION ONE A company is considering an investment proposal to install new milling controls. The project will cost Kes50,000,000. The facility has a life expectancy of five years and no salvage value. The company’s tax rate is 40%. The estimated cash flows from the proposed investment proposal are as follows: Year CF Kes 000 1 13,000 2 14,000 3 18,000 4 23,000 5 25,000 Compute: Accounting Rate of Return Discounted payback period at 6%...
the company has the following future cash flows year 1: 300$ year 2: 450$ year 3:...
the company has the following future cash flows
year 1: 300$
year 2: 450$
year 3: 500$
year 4: 600$
year 5: 625$
year 6: 750$
6. What is the Present Value of the company's Discounted Cash Flow assuming you can get a) a safe return of 5% in the market? Calculate each year's PV in the spaces provided above. Present Value of Discounted Cash Flows: What is the Net Present Value of this company if you pay $2,500 for...
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with...
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of years and no salvage value. The company's discount rate is 14%. The project would provide net operating income each of the five years as folllows: Sales $2,735,000 Variable Expenses 1,000,000 Contribution Margin $1,735,000 Fixed Expenses: Advertising , salaries, and other fixed out of pocket costs $735,000 Depreciation $995,000 Total Fixed expenses $1,330,000 Net Operating Income $405,000...
Bowman Corporation is considering an investment in special-purpose equipment to enable the company to obtain a four-year...
Bowman Corporation is considering an investment in
special-purpose equipment to enable the company to obtain a
four-year government contract for the manufacture of a special
item. The equipment costs $321,000 and would have no salvage value
when the contract expires at the end of the four years. Estimated
annual operating results of the project are as follows.
All revenue and all expenses other than depreciation will be
received or paid in cash in the same period as recognized for
accounting...
1. Which item(s) in the income statement shown above will not affect cash flows? 2. What are the project's annual net c...
1. Which item(s) in the income statement shown above will not
affect cash flows?
2. What are the project's annual net cash inflows?
3. What is the present value of the project's annual net cash
inflows?
4. What is the project's net present value?
5. What is the project profitability index for this project?
(Round your answer to the nearest whole per cent.)
7. What is the project's payback period?
8. What is the project's simple rate of return for...
value 0.50 points A company can buy a machine that is expected to have a three-year life and a $39,000 salvage value. The machine will cost $1,836,000 and is expected to produce a $209,000 after-tax net Income to be recelved at the end of each year. If a table of present values of 1 at 12% shows values of 0.8929 for one year, 0.7972 for two years, and 0.7118 for three years, what is the net present value of the...
The Green Machine Company buys a $250,000 machine to generate
revenue of $60,000/yr for five years. At the end of the fifth year
the machine is sold for $60,000.What is the net present value of
this project? Assume the company wants 10% ROI on investments
(their discount rate).
Answer should be in this format in Excel. Functions must be used
to solve (IRR, RATE, PV, FV, PMT, etc.)
7) Data Comment yearly investment years of investment (2,500) 20 6% ROI...
the company has the following future cash flows
year 1: 300$
year 2: 450$
year 3: 500$
year 4: 600$
year 5: 625$
year 6: 750$
6. What is the Present Value of the company's Discounted Cash Flow assuming you can get a) a safe return of 5% in the market? Calculate each year's PV in the spaces provided above. Present Value of Discounted Cash Flows: What is the Net Present Value of this company if you pay $2,500 for...
Bowman Corporation is considering an investment in
special-purpose equipment to enable the company to obtain a
four-year government contract for the manufacture of a special
item. The equipment costs $321,000 and would have no salvage value
when the contract expires at the end of the four years. Estimated
annual operating results of the project are as follows.
All revenue and all expenses other than depreciation will be
received or paid in cash in the same period as recognized for
accounting...
1. Which item(s) in the income statement shown above will not
affect cash flows?
2. What are the project's annual net cash inflows?
3. What is the present value of the project's annual net cash
inflows?
4. What is the project's net present value?
5. What is the project profitability index for this project?
(Round your answer to the nearest whole per cent.)
7. What is the project's payback period?
8. What is the project's simple rate of return for...
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