GREEN Recycling Com ness today. It recycles p inum, and glass. The ir ness is $510,000. The r e first year of business p00. But it is expected ncrease at a rate of $4«
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- If a copy center is considering the purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an annual net cash flow of $20,000 per year, what is the payback period?Help finish the next exercise: A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a return of $11391.00 one year from now, $16.230 00 two years from now and $21,107.00 three years from now. The required rate of return is 10%. Calculate the discounted cash flow We already know that: • The Present Value of the Cash Flow 2 is $13.413.22 and, The Present Value of the Cash Flow 3 is $15,858.00 Find the Present Value of the Cash Flow 1 and, uning this and the previous information, calculate the discounted cash flow. Note: Write you answer rounded to two decimal places Type just the number, do not type tihe S sign. For example, if your anower is $25,500.55 type only 2550.55 AnswerWashington Tenters Inc. specializes in making advanced camping tents. The company is expanding its operations and wants to open a new plant costing $600,000. Please Calculate: a. Payback period b. Net Present Value. (Assume the company expected 15% rate of return). The company expects varying annual net cash flows as follows; Year Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow $120,000 $150,000 $160,000 $170,000
- Help finish the next exercise: A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a return of $9988.00 one year from now $16,230.00 two years from now and $21,107.00 three years from now. The required rate of return is 10%. Caloulate the discoonted cash flow. We already know that: • The Present Value of the Cash Flow 2 is $13,413.22 ond, • The Present Value of the Cash Flow 3 is $15,858.00 Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate the discounted cash flow. Note: Write you answer rounded to two decimal places, Type just the number, do not type the S sign For example, if your answer is $25,500.55 type only. 25500.55 AnswerYour company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial Investment of $225,000. It is expected to generate $30,000 of annual cash flows, provide incremental cash revenues of $174,350, and Incur Incremental cash expenses of $110,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period ARR yearsHome Security Systems is analyzing the purchase of manufacturing equipment that will cost $36,000. The annual cash inflows for the next three years will be: Year 1 2 3 Cash Flow $ 18,000 16,000 11,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the internal rate of return. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Internal rate of return % b. With a cost of capital of 12 percent, should the equipment be purchased? O Yes O No
- Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $56,000. The annual cash inflows for the next three years will be: Year 1 2 3 Cash Flow $ 28,000 26,000 21,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the internal rate of return. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Internal rate of return %You are thinking of making an investment in a new factory. The factory will generate revenues of $1,960,000 per year for as long as you maintain it. You expect that the maintenance costs will start at $90,160 per year and will increase 5% per year thereafter. Assume that all revenue and maintenance costs occur at the end of the year. You intend to run the factory as long as it continues to make a positive cash flow (as long as the cash generated by the plant exceeds the maintenance costs). The factory can be built and become operational immediately and the interest rate is 6% per year. a. What is the present value of the revenues? - b. What is the present value of the maintenance costs? c. If the plant costs $19,600,000 to build, should you invest in the factory? EIERAdams Company can aquire a $750,000 machine now that willbenefit the firm over the next 8 years. Annual savings in cashoperating costs are expected to total $140,000. If the hurdle rateis 10%, the investment's net present value is: A. $(226,960) B. $(3,100) C. $65,150 D. $370,000 E. some other amount
- Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2.000 for installation. how long before they will receive their initial invest back from future cash flows? What is the payback period for the initial costs? Projected Cash flows Year 1: 5,000 Year 2: 7,000 Year 3: 4,000 Year 4: 1,000 Post your answer as number of years with 2 decimal places, for example 5.55Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow profile shown in the table below. Imagineering’s MARR is 17 %/year. End of Year Cash Flow (M$) 0 -$12 1 -$1 2 $5 3 $2 4 $5 5 $5 6 $2 7 $5 What is the future worth of this investment?田 Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $253,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires an 8% return on investments. Period Cash Flow 1 $47,400 2 $53,900 3 $76,900 4 $95,400 5 $125,400 Required: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment. 3. Determine the net present value for this investment.