1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use app the tables provided. Round your present value factor to 4 decimals.) Cash Flow Select Chart Amount x PV Factor Present Value %3D Annual cash flow %3D %24 Net present value
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Park Co. is considering an investment that requires immediate payment of $29,470 and provides expected cash
inflows of $8,700 annually for four years. Park Co. requires a 6% return on its investments.
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1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factc
the tables provided. Round your present value factor to 4 decimals.)
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- You will enter the Topic, Subtopic, Section, Paragraph in a fill in the blank question and your overall conclusion to this case. Example: ASC 100-10-45-4 (you do not need to enter what the guidance content) Research Case #1: Chicago Corporation is building a new facility at a cost of $8 million dollars. Construction began in early January 2021 and will be completed by December 31, 2021. Chicago Corporation borrowed $6 million on January 5, 2021 for the construction of the facility and is using the funding from bonds issued in earlier years to assist in the remaining of the funding for the project. The CFO for Chicago Corporation recalls that interest may be capitalized for the project but is unsure of how to determine the correct amount of interest that the company may capitalize. Chicago Corporation has satisfied the criteria for the capitalization period during all of 2021. The total interest that the company incurred during 2021 that the company would have not incurred if the new…Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments. Project X1 Project X2 Initial investment $ (114,000) $ (188,000) Net cash flows in: Year 1 42,000 85,500 Year 2 52,500 75,500 Year 3 77,500 65,500 Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. Note: Round your answers to 2 decimal places.A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $132 $132 $132 $132 $132 $132 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ fill in the blank 2 Project B: $ fill in the blank 3 What is each project's IRR? Round your answer to two decimal places. Project A: fill in the blank 4% Project B: fill in the blank 5% What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.…
- A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $132 $132 $132 $132 $132 $132 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ fill in the blank 2 Project B: $ fill in the blank 3 What is each project's IRR? Round your answer to two decimal places. Project A: fill in the blank 4% Project B: fill in the blank 5% What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.…A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $131 $131 $131 $131 $131 $131 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ Project B: $ What is each project's IRR? Round your answer to two decimal places. Project A: % Project B: % What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: % Project B: % From your answers to parts a-c, which project would be selected? _________Project…Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $174,160 and annual net cash flows of $40,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Determine the internal rate of return for the proposal. fill in the blank 2 %
- The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $143,920 and annual net cash flows of $35,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the internal rate of return for the proposal. %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 %Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5% return from its investments. Project X1 Project X2 Initial investment $ (112,000) $ (184,000) Net cash flows in: Year 1 41,000 84,000 Year 2 51,500 74,000 Year 3 76,500 64,000 Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.)
- Can you show me how this is done? Kepner Inc, is considering a capital investment project. that will provide annual cash flows of $31,248, requires an initial investment of $62,241, and the PV of cash flows is $106,796. What is the profitability index of the project? Round your answer 2 decimal places Selected Answer: 76 Correct Answer: 1.72 ± 0.01Foz Co. is considering four investment proposals (A, B, C, and D). The following table provides data concerning each of these investments: Compute the missing information pertaining to each investment proposal. (Round your percentage answer to 1 decimal place. Omit the "$" & "%" signs in your response.) A B C D Investment cost $ 48,000 $ 30,000 $ 49,000 $ Estimated salvage value 8,000 5,000 2,000 Average estimated net income 5,000 5,600 4,500 Return on average investment % 24 % 20 % 20 %ABC Enterprise would like to evaluate/analyze an investment proposal. Given the following:Investment amount - 450,000 (2022)Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14%a. NPV for the period 2023 through 2029;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.EXCEL COMPUTATION AND FORMULA