The Roadway Bar is considering building a new dance floor. A marketing survey was done last year costing $10,000, that determined the new dance floor would be a good investment. The new dance floor will cost $100,000, with an additional net working capital requirement of $15,500. the net investment for this new dance floor is $100,000 $125,500 $110,000 $115,500

a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $2,450,000 and will last 10 years. b. Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is $230,000. She estimates that the return from owning her own shop will be $55,000 per year. She estimates that the shop will have a useful life of 6 years. c. Barker Company calculated the NPV of a project and found it to be $63,900. The project's life was estimated to be 8 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of $135,000. Required: 1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV. Should the company buy the new welding system? Yes 2. Conceptual Connection: Assuming a…

A local municipality is considering investing $220,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the investment will result in annual costs and annual benefits over a 7-year period as shownin the cash flow profhle given below in thousands of dollars. Notice, an intermediate investment of $140,000 is anticipated in the 6th year of the investment. Based on a MARR of 5%, calculate the benefit-cost ratio of the investment. Round answer to two decimal places. (All values in thousand dollars) End-of Year Costs Benefits Net Cash Flow $220 -$220 $70 $120 $50 $70 $130 $60 $70 $140 $70 4 $70 $150 $80 $70 $160 $90 $210 $170 -$40 7. $70 $160 $90 1.45 2. in

A community is looking to build a dam over a stretch of river that is currently being used for recreation. The dam will generate electricity. The dam will have a useful life of 50 years after which its reservoir will be full of sediment and the dam will need to be removed. The following are the characteristics of the dam:Initial cost: $350,000,000Electricity produced: 200,000 MWh per year at $150/MWh Value of recreation lost: $20,000,000 per year a. If the social discount rate is a constant 2% per year, is the dam a good idea? Show your work and explain your rationale.

If a garden center is considering the purchase of a new tractor with an initial investment cost of $127,000, and the center expects a return of $31,000 in year one, $21,000 in years two and three, $15,000 in years four and five, and $12,000 in year six and beyond, what is the payback period? ______ years

The investment committee of Granny’s Restaurants Inc. is evaluating two restaurant sites. The sites have different useful lives, but each requires an investment of $1,200,000. The estimated net cash flows from each site are as follows:   Net Cash Flows Year Helena Butte 1 $375,000 $500,000 2 $375,000 $500,000 3 $375,000 $500,000 4 $375,000 $500,000 5 $375,000   6 $375,000                                                                   The committee has selected a rate of 20% for purposes of net present value analysis. It also estimates that the residual value at the end of each restaurant’s useful life is $0, but at the end of the fourth year, Helena’s residual value would be $500,000.                                                                                        Instructions:  Using formulas/functions wherever available, complete the following on the Input tab… For each site, compute the net present value,…

The plant manager of Orlando Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $275,000. The manager believes that the new investment will result in direct labor savings of $55,000 per year for 10 years. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a.  What is the payback period on this project?fill in the blank 1 of 1 years b.  What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar.Net present value fill in the blank 1 of 1$ c.  What else should the manager consider in the analysis?

City of Oliver is considering automating a process in its accounting department that has been labor-intensive.  The equipment currently used in the department can be sold.  The new equipment will have a projected useful life of 10 years.  The old equipment has a remaining useful life of 10 years.  The following data are available to be used in making the decision.  Should the city invest in the new equipment?  Support your answer with appropriate calculations. Current equipment    Current equipment book value                    $  30,000    Annual depreciation charges                             3,000    Current estimated disposal value          5,000 New equipment                                                  Cost                                                  $150,000    Annual depreciation charge                12,500    Expected disposal value                      25,000 Labor savings each year                                $  50,000 Present value factors @ 6%             $1…