Kristi is considering an investment that will pay $15,000 a year for 10 years, first payment received one year from today. How much should she pay for this investment if she wishes to earn a 7 percent rate of return?
i need it to be answered as soon as possible please Chapter 8 Problem 8-21 or 8-2B Name Units-of- Production Double- Declining- Balance Straight line Totals Workapace : machno w is 257, 500 hele lewers) Seluge 20.00 Straight-Line: Units-of-Production: ATL-125.000 UMS near 22. ODS par 2 - 124.600 und Hear3 : 1 00 u year 4-15, 200 unts Double-Declining-Balance: 166...
At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $27,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $189,000 (its fair value) and was expected...
4. Farrah Corporation is considering two projects (see below). For your analysis, assume these projects are mutually exclusive with a required rate of return of 12%. Initial investment Cash inflow Year 1 Project 1 $185,000 $230,000 Project 2 $1,100,000 $1,450,000 Compute the following for each project: NPV (net present value) PI (profitability index) IRR (internal rate of return) Which project...
Question 2: Company Telviv is a large computer hardware manufacturer. On January 1st the company buys a new machine. The cost of the machine totals to $11,000 and includes the follows: Cost of machine: $9,000 Cost of delivery: $2,000 The machine is expected to work for 7 years, by the end of the seventh year the company expects to sell...
This question must be answered in Excel and you need to use Excel formulas to do your calculations in order to earn full credit. When you have finished, upload your Excel file. A company buys a fixed asset at a cost of $100,000. The asset has an estimated useful life of 5 years. a . For the second year of...
please complete questions S12-10, S12-11, S12-12 d. Explain your S12-10 Compute NPV-equal net cash inflows (Learning Objective 4) Woodsy Music is considering investing $625,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows $90,000 per year for the next nine years. Assuming that Woodsy Music uses an 8%...
Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,300,000; the new one will cost, $1,560,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $300,000 after five years. The old computer is being depreciated at a rate of $260,000 per...
Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,300,000; the new one will cost, $1,560,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $300,000 after five years. The old computer is being depreciated at a rate of $260,000 per...
Suppose Hungry Whale Electronics is evaluating a proposed capital budgeting project (project Beta) that will require an initial Investment of $2,500,000. The project is expected to generate the following net cash flows: Year Year 1 Year 2 Year 3 Year 4 Cash Flow $325,000 $450,000 $500,000 $400,000 Hungry Whale Electronics's weighted average cost of capital is 9%, and project Beta...