Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into a spreadsheet. Category To T₁ Investment - $8,994,560 Net working capital change - $486,000 Operating cash flow $2,872,000 Salvage T2 T3 $486,000 $3,515,000 $4,111,000 $653,000 At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project. What is the IRR of the project? % (Round to two decimal places.) At what adjusted WACCS will the company accept this project? (Select the best response.) A. The company will accept this project if the adjusted WACC is no more than the IRR calculated above. OB. The company will accept this project if the adjusted WACC is greater than the IRR calculated above.
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- Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into a spreadsheet. Category T₁ Investment Net working capital change Operating cash flow Salvage To - $10,244,762 - $569,000 $3,277,000 What is the IRR of the project? 10.5% (Round to two decimal places.) T2 $3,884,000 T3 $569,000 $4,570,000 $615,000 At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project.Home Insert Draw Design Layout Mail ngs Review View Help A Paste Font Paragraph Styles Editing Dictate Editor Reuse Files do Clipboard N Styles S Voice Reuse Files Editor Problem Initial investment (II) = $6,500, TPP = 2.5 years, required rate of return (r) = 8% Year Operating cash flow 1 2,000 4,000 3 3,000 1. How much is payback period (PP)? Should the project be accepted or rejected? 2. How much is discounted payback period (DPP)? Should the project be accepted or rejected? 3. How much is net present value (NPV)? Should the project be accepted or rejected? 4. How much is internal rate of return (IRR)? Should the project be accepted or rejected? 5. How much is modified internal rate of return (MIRR)? Should the project be accepted or rejected? 5 736 words English (United States) O Focus 7:38 PM 4/13/2022ing and learning resource from Cengage Leaming - Google Chrome takeAssignment/takeAssignmentMain.do?invoker=&ttakeAssignmentSessionLocator=8inprogress%3false еВook Organization Costs S&W Plumbing decided to incorporate and has incurred the following costs of organizing: Incorporation fees $ 400 Attorneys' fees 4,200 Promotion expenses 5,300 Prepare the entry for the payment of these organization costs for cash on January 31. Page: DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 20-- 1 Jan. 31 1 3 3 hp
- Help Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $180,000. John Shell, president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project ne are shown in the following table: a. Determine the payback period of each project. b. Because they are mutually exclusive, Shell must choose one. Which should the company invest in? nts un a. The payback period of project A is years. (Round to two decimal places.) neText edia Librai cial Calculat ter Resource Enter your answer in the answer box and then click Check Answer. Check Answer mic Study ules parts remaining Clear All nmunication Tools > 10:02 PNM 4/19/202 P Type here to search insert prt fg f1oCengageNOWv2| Online teachin X N2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inpro... Differential Analysis Involving Opportunity Costs On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public w Alternatively, the company could use the funds to invest in $149,100 of 6% U.S. Treasury bonds that mature in 16 years. The bond at face value. The following data have been assembled: Cost of store equipment $149,100 Life of store equipment 16 years Estimated residual value of store equipment $18,600 Yearly costs to operate the warehouse, excluding depreciation of equipment $55,900 Yearly expected revenues-years 1-8 75,600 Yearly expected revenues-years 9-16 70,100 Required: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) a investing in U.S. Treasury bonds (Alternative 2). If an amount is…FINAL EXAM Managerial Finance.pdf - Adobe Reader File Edit View Window Help Оpen 1 73.8% Tools Fill & Sign Comme Sign I • Export PDF • Create PDF • Edit PDF 1- Evaluate the following projects using the payback method assuming a rule of 3 for payback. years • Combine PDF Project A -10,000 Project B -10,000 Year • Send Files 1 4,000 4,000 Store Files Full-screen Snip 4,000 3,000 3 4,000 2,000 Acrobat.com 4 1,000,000
- Com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator- der eBook < Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck $32,000 9 years Amount of investment Useful life 3D Printer Estimated residual value Estimated total income over the useful life $8,640 Determine the expected average rate of return for each Truck Check My Work Show Me How % % $96,000 4 years 3 0 0 Print Item $10,080 proposal. If required, round your answers to one decimal place 0 MINGT202502 202223 Saved to this PC V Animations 1 BIUS ab AV - Aa- Slide Show Record Review View Help Accessibility. Investigate $ R Font % 5 T AAAEE G 2A Search Paragraph Drawing DCF Example: A company is considering the launch of a new product: ■ Investment required in equipment: £150000; Project life cycle: 5 years, Value of equipment in year 6: £10000, Cash inflow as follows: . E W 6 Year 1 2 3 4 5 An existing product can be discontinued immediately or retained instead of the new product for five years. If retained a cash inflow of £12000 p.a would be expected. Discount rate (cost of capital) is 15% p.a. Calculate the expected net present value of the new product (NPV=£67,000) Advise the company whether to launch the new product or retain the existing one. (New product generates NPV = £67k + £10k equipment value at end; NPV of exisitng product = £40k - advise launch new product) 4 & H 7 * U 8 Text Direction Align Text Convert to SmartArt £000 60 62 65 70 70 11 M 9 JU K Shape Fill…need to solve the question in handwriting Q4:.: A company is planned to install new automated plastic molding press. Four different presses are available as follows: Press 1 Press 2 Press 3 Press 4 Capital Investment $24,000 $30,000 $49,000 $52,000 Useful Life (year) 5 5 5 5 Annual Expenses Power (S) Labor ($) Maintenance ($) Tax & Insurance ($) 2,720 2,720 26,400 24,000 1,600 480 1,800 608 4,800 16,800 2,600 992 4,800 14.800 2,000 1,040 Assume that each press has the same output capacity (120,000 units per year) and all units can be sold (the selling price is $0.375 per unit. Additional capital invested is expected to earn at least 10%. Which press should be chosen?
- Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Category T0 T1 T2 T3 Investment −$9,116,807 Net working capital change −$636,000 $636,000 Operating cash flow $2,930,000 $3,413,000 $4,156,000 Salvage $597,000 At what adjusted WACCs will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project. What is the IRR of the project? (Round to two decimal places.)MyUSF My Home 4 CengageNOWv2 | Online teachin X + ngagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro.. to Determine the average rate of return for a project that is estimated to yield total income of $270,400 over 4 years, costs $615,000, and has a $61,000 residual value.eBook Show Me How Video Average Rate of Return The following data are accumulated by GreenApple Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software Amount of investment $40,000 $72,000 Useful life 4 years 5 years Estimated residual value $0 $0 Estimated total income over the useful life $5,200 $19,800 Determine the expected average rate of return for each proposal. If required, round to one decimal place. Testing Equipment fill in the blank 1 % Diagnostic Software fill in the blank 2 %