Chapter 10 Homework

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show the Internal Rate of Return of Machine B (expressed to two decimal places) using interpolation if the net cash flows are R290 000 per year for four years.

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Can you show me how this is done?    Grayson Corp. is considering the purchase of a piece of equipment that costs $34,269. Projected net annual cash flows over the project’s life are: Year Net Annual Cash Flow          1                   $  6,702          2                       19,077          3                       15,682          4                       19,233 The cash payback period is. Round your answer by two decimals Selected Answer:  0.56 Correct Answer:  2.54 ± 0.01

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Provide correct answer this question general accounting

Subject : Accounting

Use Annual Cash Flow Analysis to choose which Alternative should the company choose, if the interest rate 12%. Data Alt. A Alt. B Alt. C Useful Life, Years 13 11 First Cost $2,300,000 $2,780,000 $2,540,000 Salvage Value $82,000 $118,000 $97,000 Annual Benefit $580,000 $670,000 $650,000 M&O $65,000 $78,000 $71,000 M&O Gradient $11,000 $15,000 $12,500

Find NPV and the Profibility index?

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For the cash flows below, use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month.

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MACHINE A MACHINE B INITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED DISPOSAL/RESIDUAL VALUE R10 000   EXPECTED NET CASH INFLOWS R R END OF: YEAR 1 34 000 33 000 YEAR 2 27 000 33 000 YEAR 3 32 000 33 000 YEAR 4 30 000 33 000 YEAR 5 26 000 33 000 DEPRECIATION PER YEAR 18 000 22 000 COMPANY ESTIMATES COST CAPITAL = 14%     2) Calculate the accounting rate of return (on average investment) for Machine A. (answer rounded offto 2 decimal places).

Using the provided information calculate the NPV Mkhize Ltd is considering buying a machine and has presented the following information; Purchase price Expected economic life Minimum required rate of return Net cash inflows Rate of taxation Depreciation is calculated using the straight-line method A. Positive R12,883 B. Negative R9,086 OC. Positive R10,089 OD. Negative R988 R130 000 10 years 12% R25000 30%

1. For the following cash flow compute: Investment $65,000 42,000 60,000 Annual operating Cost Annual Revenues Operating cost will increase by Arithmetic Gradient of G=$500 annually from the second year thru the 6 year Salvage Value at the end of 6 year Investment life n=6 years MARR= 10% 3,000 Hint for IRR use 20% a. Draw the cash-flow Diagram and compute PVW AW.FW b. IRR C. ERR

A company is considering buying a new machine. Specific details:                                   Initial Investment $400,000                                         Annual Cash Revenues $375,000                                         Annual Cash Expense $262,000                                         Expected Life 5 Years                                       Salvage Value $0                                         Discount Rate 10%                                         All cash flows are after tax.                                                             1 Prepare a schedule that shows the applicable cash flows and other relevant items for this decision                         2 Compute the payback period for the new machine                                   3 Compute the Accounting Rate of Return (ARR) for the new machine

MACHINE A MACHINE B INITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED DISPOSAL/RESIDUAL VALUE R10 000   EXPECTED NET CASH INFLOWS R R END OF: YEAR 1 34 000 33 000 YEAR 2 27 000 33 000 YEAR 3 32 000 33 000 YEAR 4 30 000 33 000 YEAR 5 26 000 33 000 DEPRECIATION PER YEAR 18 000 22 000 COMPANY ESTIMATES COST CAPITAL = 14%     1) Calculate the payback period for Machine A and B (answers must be expressed in years, monthsand days).

Saved A company is considering the acquisition of o new machine that costs $429,000 and has a useful life of 5 years with no solvage velue. The incremental net operating incomne and incremental net cosh flows that would be produced by the mochine oare (Ignore income taxes.) Incremental Net Incremental Operating Income Net Cash Flows $ 70,000 $ 76,000 $ 87,000 $ 50,000 $ 92,000 Year 1 $ 152,080 Year 2 $165,000 $ 152,000 $ 154,000 Year 3 Year 4 Year 5 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to: (Round your answer to 1 decimal place.) Multipie Cholce O 5.0 years O 21years 4.3 years 27 years

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Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC Year Cash flows Ⓒa 1.58 years Ob. 220 years OC 1.68 years Od 193 years O e 2.24 years 10.00% 0 -$850 T 5525 $485 $445 $405

Hint: this is the sum of each future year's discounted cash flows. What is the present value of all future cash flows? Note: do not include value of Year 0 cash flow. Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return = 11.6%       Year Cash Flow Discounted Cash Flow 0 $-3,500,000 $-3,500,000 1 $1,000,000 $896,057 2 $1,200,000 $963,503 3 $1,300,000 $935,300 4 $900,000 $580,211 5 $1,000,000 $577,669

I only need E. Answers for A - D A: 6.56% B: 6 Years C: NPV 78,529 D: NPV @ 14% -186,142 Please explain the answer for question E. I am unsure how to get it.

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Azimuth Company was considering the purchase of equipment. Details on the equipment are as follows: Year Original Investment Cash Flow 0 $200,000   1   $ 40,000 2   40,000 3   60,000 4   40,000 5   60,000 6   30,000 ​ What is the payback period in years, assuming no taxes are paid? Group of answer choices 5.00 4.00 3.85 4.33