acme corporation is considering a project to make gizmos. the cash flow would be 425000 per...

acme corporation is considering a project to make gizmos. the cash flow would be 425000 per year. the project cost is 2.6 million and no matter when the project is started, gizmos would become obsolete in 10 years. hoever, the rechnology to produce gizmos is becoming cheaper by the year and the project costs are likely to decline by 230000 per year until it reaches 1.45 million, after which there would be no more reduction in prject cost acme's required return is 12% should the project be undertaken and if so, when

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Acme corporation is considering a project to make gizmos. The cash flow would be $425,000 per...

Acme corporation is considering a project to make gizmos. The cash flow would be $425,000 per year. The project cost is $2.6 million and no matter when the project is started, gizmos would become obsolete in 10 years. However, the technology to produce gizmos is becoming cheaper by the year and the project costs are likely to decline by $230,000 per year until it reaches $1.45 million, after which there would be no more reduction in the project cost, Acme’s...

Acme Oscillators is considering an investment project that has the following rather unusual cash flow pattern....

Acme Oscillators is considering an investment project that has the following rather unusual cash flow pattern. Year 0, Cash Flow $101 Year 1, Cash Flow -460 Year 2, Cash Flow 790 Year 3, Cash Flow -602.9 Year 4, Cash Flow 171.6 a. Calculate the project's NPV at each of the following discount rates: 00%, 5%, 10%, 20%, 30%, 40%, 50%. b. What do the calculations tell you about this project's IRR? The IRR rule tells managers to invest if a...

Central Machines is considering a project that will generate cash flow of $2,304,714 per year for...

Central Machines is considering a project that will generate cash flow of $2,304,714 per year for 4 years, followed by $4,233,139 per year for 3 years, followed by $5,501,087 per year for 3 years. All cash flows will occur at the end of the year. If the cost of the project is $16,064,914, and the company's WACC is 11.7%, what is the Modified Internal Rate of Return of the project? State your answer as a percentage to 2 decimal places.

You are considering a project with the following cash flows: YEAR PROJECT CASH FLOW ...

You are considering a project with the following cash flows: YEAR PROJECT CASH FLOW 0 -60,000 1 25,000 2 25,000 3 25,000 4 25,000 If the appropriate discount rate is 11 percent, what is the project's discounted payback period in years?

Trovato Corporation is considering a project that would require an investment of $63,000. No other cash...

Trovato Corporation is considering a project that would require an investment of $63,000. No other cash outflows would be involved. The present value of the cash inflows would be $79,380. The profitability index of the project is closest to (Ignore income taxes.): Multiple Choice 0.74 0.26 1.26 0.21

(Ignore income taxes in this problem.) Acme, Inc. is considering a project that would have a...

(Ignore income taxes in this problem.) Acme, Inc. is considering a project that would have a ten-year life and would require a $1,275,000 investment in equipment. At the end of ten years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows: Sales.......................................................... $1,750,650 Less variable expenses.............................. 900,125 Contribution margin.................................. 850,525 Less fixed expenses: Fixed out-of-pocket cash expenses........ $517,100 Depreciation........................................... 119,200 636,300 Net operating income................................ $...

Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow...

Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) 0 $(180) 1 80 2 75 3 80 4 95 If the project's appropriate discount rate is 12 percent, what is the project's discounted payback period? The project's discounted payback period is ___ years.

Mega Dynamics is considering a project that has the following cash flows: Year Project Cash Flow...

Mega Dynamics is considering a project that has the following cash flows: Year Project Cash Flow 0 ? 1 $2,000 2 3,000 3 3,000 4 1,500 The project has an IRR of 17% . The firm's cost of capital is 11 percent. What is the project's net present value (NPV)?

1. (Ignore income taxes in this problem.) Acme, Inc. is considering a project that would have...

1. (Ignore income taxes in this problem.) Acme, Inc. is considering a project that would have a ten-year life and would require a $1,275,850 investment in equipment. At the end of ten years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows: Sales........................................................... $1,750,650 Less variable expenses............................... 900,125 Contribution margin.................................. 850,525 Less fixed expenses: Fixed out-of-pocket cash expenses........ $517,100 Depreciation........................................... 119,200 636,300 Net operating income...................................

Cash flow series Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Annual...

Cash flow series Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Year Prob = 0.3 Prob = 0.22 Prob = 0.48 0 –5000 –6000 –4000 1 1000 500 3100 2 1000 1500 1200 3 1000 2000 100 Determine the expected present worth of the following cash flow series if each series may be realized with the probability shown at the head of each column. Let i = 20% per year....

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