Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 2 3 4 5 Cash flow: -$2,400 $910 $900 $800 $580 $380 Payback years
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- Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 4 5 Cash flow: $1,600 $590 $660 $640 $420 $220 Payback years Should the project be accepted or rejected? O accepted O rejected MacBook AirCrane Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $164,000 $180,500 $204,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 14,420 16,480 21,630 4 14,420 12,360 13,390 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view the factor table. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge years Project Clayton yearsMunaining Time: 57:07 50 Suppose you make a $5,000 investment that will neturn $3,000 in year 2 and another $3.500 in year 4. With an interest rate of 4.5 hat is the NPV of this project? $2,162.50 $1,500.00 S682.16 $247.34
- Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: −$1,100 $390 $510 $540 $320 $120 Should the project be accepted or rejected?multiple choice accepted rejectedYou are considering the following two mutually exclusive projects. The required rate of return is 11.25% for project A and 10.75% for project B. Which project should you accept? YEAR PROJECT A PROJECT B 0 -$48,000 -$126,900 1 $18,400 $69.700 2 $31,300 $80,900 3 $11,700 $0* Question Completion Status: QUESTION 6 You are considering two independent projects both of which have been assigned a discount rate of 11.5% percent. Based on the project NPV, what is your recommendation concerning these projects? Project A Project B Year Cash Flow Year Cash Flow -$92,250 -$45,000 1 $50,500 $59,000 1 $17,500 $30,000 O You should accept both projects. O You should reject both projects. O You should accept project A and reject project B. You should accept project B and reject project A. O You should accept project A and be indifferent to project B. Click Save and Submit to save and submit. Click Save AII Answers to save all answers. Save All A
- This quiz: 10 point(s) possible This question: 1 point(s) possible Submit quiz (Discounted payback period) Sheinhardt Wig Company is considering a project that has the following cash flows: discounted payback period? If the project's appropriate discount rate is 11 percent, what is the project's The project's discounted payback period is years. (Round to two decimal places.)x E My Home CengageNOWv2 |Online teachir x+ now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro. ta o 伯 Determine the average rate of return for a project that is estimated to yield total income of $250,000 over 4 years, costs $480,000, and has a $20,000 residual value. Next Previous Submit Test for GradingU3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Capital investment Annual net income: Total Year 1 (a) 2 Project Bono 3 4 Project Edge 5 Project Bono $160,000 14,000 Project Clayton 14,000 14,000 Click here to view the factor table. 14,000 14,000 $70,000 Project Edge Project Clayton $175,000 $200,000 18,000 17,000 16,000 12,000 9,000 $72,000 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) years 27,000 years 23,000 Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) years 21,000 13,000 12,000 $96,000
- Check my we Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: 2 4 Cash flow -$3,500 $1,070 $1,020 $880 $660 $460 IRR es Should the project be accepted or rejected? O rejected O accepted MacBook AirCompute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: –$1,700 $630 $690 $660 $440 $240 Should the project be accepted or rejected? multiple choice accepted rejectedClear my choice The total investment required for a project is estimated at OMR100, 000. The cash flows expected from project for the first four years are given below Year Project A Year 1 25,000 Year 2 38,500 Year 3 42,000 Year 4 48,000 What will be pay back period? 2.86 O b. B.23 c. 3.03 d. 2.63 All the options are wrong o search Tenovo 近