4. Determine Project Y’s net present value using 9% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)The dropdown options for the line under "years 1-6" are: total investments, net present value, present value of cash inflows Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value.The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1,FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)Annual AmountsProject Y$ 355,000Sales of new productExpensesMaterials, labor, and overhead (except depreciation)Depreciation-MachinerySelling, general, and administrative expenses159,04057,50025,000Income$ 113,4604. Determine Project Y's net present value using 9% as the discount rate. (Do not round intermediate calculations. Roundyour present value factor to 4 decimals and final answers to the nearest whole dollar.)Present ValuePresent Value of NetNet Cash Flowsof Annuity at9%%3DCash FlowsYears 1-6Net present value

Net present value : It is the discounted value of future cash inflow. It is determined by…

Answered: Project Y requires a $345,000…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 4P

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4. Determine Project Y’s net present value using 9% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)

The dropdown options for the line under "years 1-6" are: total investments, net present value, present value of cash inflows

Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value.
The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1,
FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Annual Amounts
Project Y
$ 355,000
Sales of new product
Expenses
Materials, labor, and overhead (except depreciation)
Depreciation-Machinery
Selling, general, and administrative expenses
159,040
57,500
25,000
Income
$ 113,460
4. Determine Project Y's net present value using 9% as the discount rate. (Do not round intermediate calculations. Round
your present value factor to 4 decimals and final answers to the nearest whole dollar.)
Present Value
Present Value of Net
Net Cash Flows
of Annuity at
9%
%3D
Cash Flows
Years 1-6
Net present value

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