1.
Introduction:
For a specific project, by comparing initial investment, the present value of cash flows in a particular time at a particular
The reason for the increase in the net present value, which is a result of reducing the discount rate from 14% to 10%.
2.
Introduction:
Internal Rate of Return (IRR) is a rate of interest that is helpful to compare investments of the project with one another and makes the net present value of all cash flows equal to zero.
(a) The net present value of the project, (b) the interest rate at which the net present value turns positive from negative by changing the discount rate by one percent, (c) the two whole discount rates where the internal rate of return is between them, and (d) when the discount rate is 14% and salvage value is uncertain, then how large the salvage value can be to result in a positive net present value.
Want to see the full answer?
Check out a sample textbook solutionChapter 7 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
- Please do it on EXCEL ONLY. I just want Modified IRR in all three approaches: The discounting approach, the reinvestment approach, and the combination approach. Please post two screenshots, one showing the answers, another showing the formulas in excel.arrow_forwardRequired information (The Excel worksheet form that appears below is to be used to recreate part of the example relating to Turbo Crafters that appears earlier in the chapter.) Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text. Check your worksheet by changing the estimated total amount of the allocation base in the Data area to 50,000 machine-hours, keeping all of the other data the same as in the original example. If your worksheet is operating properly, the predetermined overhead rate should now be $6.00 per machine-hour. If you do not get this answer, find the errors in your worksheet and correct them. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this…arrow_forwardPlease answer the questions after opening the attached screenshot! I need answers for the bold blank spaces you will see in the excel sheet.arrow_forward
- Please solve this problem directly on Excel spreadsheet. Make sure to include the calculations performed using Excel formulas.arrow_forwardExploring Annuities with Microsoft Excel I. Objectives: To organize data and perform calculations using Microsoft Excel To find future values for an annuity To determine payment amounts for an annuity given a set goal To analyze the effect of time To research reasonable annuity rates and investment amounts for use in the above calculations II. Procedure: Sheet 1 - Future Value 1. Open a new Microsoft Excel (or Google Sheets) blank spreadsheet. 2. At the bottom of the page, it will show "Sheet 1". You can rename it "Future Value". a. Right click the "Sheet 1" tab and you will see an option to rename it. 3. Type "Payment Amount (P)" in cell A1. 4. Type "Rate (i)" in cell B1. 5. Type "Number of Payments per year (n)" in cell C1. 6. Type "Years (t)" in cell D1. Now the research.. You need to investigate reasonable annuity rates for our current market. You can choose a rate of your own using the information you find. Also, I want you to find out what investors suggest your payment amount…arrow_forwardPlease note: You can draw your trees either by hand on paper or in Excel. If you do it on a paper, please take a picture of the tree and insert it in your solution file. You can submit your solution as an Excel file or Word document. In either case, your solution should contain your decision trees and all necessary calculations (not just the results of calculations). Problem 1. The WHN Company Problem. The WHN Company is going to introduce one of the three new products: a widget, a hummer, or a nimnot. The market condition could be favorable, stable, or unfavorable with the probabilities 0.2, 0.5, and 0.3 respectively. The monetary outcomes for each product under each condition are described in the following table: Unfavorable $120,000 $70,000 -875,000 $40,000 $20,000 $30,000 $30,000 Favorable Stable Widget Hummer $60,000 Nimnot $35,000 Create a decision tree to identify which new product should be introduced in order to maximize the company's profit?arrow_forward
- Describe the accounts receivable in Microsoft Dynamics AX. Give an example to illustrate its usefulness.arrow_forwardProblem 3. Calculate the PW and IRR of this transaction. At the given MARR is this a good purchase? Please workout in excel spreadsheet.arrow_forwardUse cells A6 to C17 from the given information to complete this questions. You must use the built-in excel function to answer this question. Don't worry about the numbers that are answered, they are all correct! Just help me figure out the remaining four please!arrow_forward
- Using Excel or a spreadsheet of your choice, create interest–time factor tables, similar to Table 20.9 , for i = 6 5% and i = 6 75% .arrow_forwardskip if you already did this or else downvoteSHOW COMPLETE MANUAL SOLUTIONS FOR UPVOTENOT EXCELarrow_forwardDirections: Read the following sentences. Write the letter “T” if the statement is True and “F” if the statement is False. Write your answer on the space before the number. You may view this test at our google class. __________4. LCNRV should always be equal to net realizable value. __________5. Lower of cost and net realizable value gives the lowest valuation if applied to individual item of inventory. __________6. The amount of any writedown of inventory to net realizable value and all losses of inventory should be recognized as operating expense in the period the writedown or loss occurs. __________7. Professional fee arising directly from the acquisition of property and equipment are recognized as expense immediately. __________8. Exchange has a commercial substance when the exchange result in the difference in future cash flows. __________9. The cost of abnormal amounts of wasted materials is not included in the cost of self-constructed assets. __________10. An asset is not…arrow_forward
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning