MYUSF* My Horne2 CengageNOWv2 |Online teachin Xgagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro...to伯Vanessa Company is evaluating a project requiring a capital expenditure of $480,000. The project has an estimated life of 4 years and no salvage value.The estimated net income and net cash flow from the project are as followS:YearNet IncomeNet Cash Flow$90,000$210,00080,000200,0003.40,000160,000430,000150,000$240,000$720,000The company's minimum desired rate of return for net present value analysis is 15%. The factors for the present value of $1 at compound interest of15% for 1, 2, 3, and 4 years are 0.870, 0.756, 0.658, and 0.572, respectively.Determine (a) the average rate of return on investment and (b) the net present value for the project.a. Average rate of return on investmentb. Net present valueNext,(Previous10:00 PM5/8/2021%241.

Average rate of return = Average net income/Average investment Average investment = Initial…

15% for 1, 2, 3, and 4 years are 0.870, 0.756, 0.658, and 0.572, respectively. Determine (a) the average rate of return on investment and (b) the net present value for the project. a. Average rate of return on investment % b. Net present value

15% for 1, 2, 3, and 4 years are 0.870, 0.756, 0.658, and 0.572, respectively. Determine (a) the average rate of return on investment and (b) the net present value for the project. a. Average rate of return on investment % b. Net present value

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Solve on the white paper or the typed. Not use excel Q) The original cost of a certain piece of equipment is 150,000 and sometimes it is depreciated by a 10% sinking fund method. Determine the annual depreciation charge if the book value of the equipment after 10 years is the same as if it had been depreciated at 14,000 each year by straight-line formula
Plz use excel and show formula !!!!!!! Benson Enterprises is deciding when to replace its old machine. The machine’s current salvagevalue is $1.2 million. Its current book value is $1 million. If not sold, the old machine will requiremaintenance costs of $420,000 at the end of the year for the next five years. Depreciation on theold machine is $200,000 per year. At the end of five years, it will have a salvage value of $220,000.A replacement machine costs $3.5 million now and requires maintenance costs of $160,000 at theend of each year during its economic life of five years. At the end of five years, the new machinewill have a salvage value of $540,000. It will be fully depreciated using the three-year MACRSschedule. In five years a replacement machine will cost $4,000,000. Pilot will need to purchasethis machine regardless of what choice it makes today. The corporate tax is 35 percent and theappropriate discount rate is 10 percent. The company is assumed to earn sufficient revenues…
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.)
Please answer it very very fast. typed answer only. I ll UPVOTE the answer.thank you Consider a four-year project with the following information: initial fixed asset investment = $430,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $24; variable costs = $16; fixed costs = $120,000; quantity sold = 72,000 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Consider a four-year project with the following information: initial fixed asset investment = $430,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $24; variable costs = $16; fixed costs = $120,000; quantity sold = 72,000 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is the value of an asset after 8 years of use if it depreciates from its original value of P 500, 000.00 to itssalvage value of 1.5% in 10 years? (Use Straight Line Method) Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/16J6M6RHBZ22NDaog_9DSXMgYb4qFu7T3/view?usp=sharing
Pitt Company is considering two alternative investments. The company requires a 12% return from its investments. Neither option has a salvage value. Project X Project Y Initial investment $244,049 $180,396 Net cash flows anticipated: Year 1 83,000 35,000 Year 2 59,000 56,000 Year 3 91,000 71,000 Year 4 82,000 68,000 Year 5 77,000 27,000 A. Compute the IRR for both projects using the IRR spreadsheet function. Project X fill in the blank 1% Project Y fill in the blank 2% B. Which project should be recommended.
Linda’s Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) $ 1,500,000 Useful life 10 years Salvage value $ 140,000 Annual net income generated $ 142,500 LLT’s cost of capital 14 % Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. 2. Payback period. 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 14%.
Plz show excel formula !!!! Benson Enterprises is deciding when to replace its old machine. The machine’s current salvagevalue is $1.2 million. Its current book value is $1 million. If not sold, the old machine will requiremaintenance costs of $420,000 at the end of the year for the next five years. Depreciation on theold machine is $200,000 per year. At the end of five years, it will have a salvage value of $220,000.A replacement machine costs $3.5 million now and requires maintenance costs of $160,000 at theend of each year during its economic life of five years. At the end of five years, the new machinewill have a salvage value of $540,000. It will be fully depreciated using the three-year MACRSschedule. In five years a replacement machine will cost $4,000,000. Pilot will need to purchasethis machine regardless of what choice it makes today. The corporate tax is 35 percent and theappropriate discount rate is 10 percent. The company is assumed to earn sufficient revenues togenerate…
Pitt Company is considering two alternative investments. The company requires a 12% return from its investments. Neither option has a salvage value. Project X Project Y Initial investment $254,976 $176,440 Net cash flows anticipated: Year 1 82,000 36,000 Year 2 60,000 56,000 Year 3 91,000 72,000 Year 4 81,000 67,000 Year 5 77,000 26,000 A. Compute the IRR for both projects using the IRR spreadsheet function. Project X fill in the blank 1% Project Y fill in the blank 2% B. Which project should be recommended. Project X
Not use excel Q)What is the depreciation charge of an equipment purchased four years ago for $120,000, a salvage value of $20,000, and a expected life of 4 years if it is depreciated using a straight line method ? a. $14,285.71 b. 11,428.60 c. $25,000 d. $20,000
Show clean and complete details of your work Problem 4: A heavy planner was purchased 12 years ago for P 50,000 with no salvagevalue. As the life of the planner was 20 years, a depreciation reserve has been providedon that basis. Now the owner wishes to replace the old planner by a newly – designedplanner with several advantages. The old planner can sell for P 10,000. If the new plannercosts P 70,000, how much new capital will be required to make the purchase if thedepreciation is computed using1. SL Method2. SF Method at 10%3. SYD Method
Plz use excel show excel formula !!!! Plz use excel and show formula !!!!!!! Plz use excel and show formula !!!!!!! Benson Enterprises is deciding when to replace its old machine. The machine’s current salvagevalue is $1.2 million. Its current book value is $1 million. If not sold, the old machine will requiremaintenance costs of $420,000 at the end of the year for the next five years. Depreciation on theold machine is $200,000 per year. At the end of five years, it will have a salvage value of $220,000.A replacement machine costs $3.5 million now and requires maintenance costs of $160,000 at theend of each year during its economic life of five years. At the end of five years, the new machinewill have a salvage value of $540,000. It will be fully depreciated using the three-year MACRSschedule. In five years a replacement machine will cost $4,000,000. Pilot will need to purchasethis machine regardless of what choice it makes today. The corporate tax is 35 percent and theappropriate…

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