Question

In: Accounting

Calculate? (a) net present? value, (b) payback? period, (c) discounted payback? period, and? (d) internal rate...

Calculate? (a) net present? value, (b) payback? period, (c) discounted payback? period, and? (d) internal rate of return.

Cost of the equipment

$166,000

Reduced labor costs

$45,000

Estimated life of the equipment

10

years

Terminal disposal value

?$0

?After-tax cost of capital

12

?%

Tax rate

20

?%

Assume depreciation is calculated on a? straight-line basis for tax purposes. Assume all cash flows occur at? year-end except for initial investment amounts.

Calculate? (a) net present? value, (b) payback? period, (c) discounted payback? period, and? (d) internal rate of return.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Calculate the discounted payback, net present value, and internal rate of return for the following cash...
Calculate the discounted payback, net present value, and internal rate of return for the following cash flows. -60, -50, 6, 45, 60, 70, 60, 45, 20. Discount rate at 7%. Please show work for the internal rate of return calculation.
the following techniques for analyzing projects: Payback Rule Discounted Payback Period Net Present Value Internal Rate...
the following techniques for analyzing projects: Payback Rule Discounted Payback Period Net Present Value Internal Rate of Return Why must corporate managers use multiple techniques of project evaluation? Which technique is most commonly used and why? Describe several ways the techniques above can be used as one progresses in their professional career. (Identify specific types of projects that can be analyzed and discuss the advantages and disadvantages of using the techniques above)
Calculate the net present value, internal rate or return and payback period for an investment project...
Calculate the net present value, internal rate or return and payback period for an investment project with the following cash flows using a 5 percent cost of capital:                 Year                       0                              1                              2                              3                 Net Cash Flow   -$150,000             $62,000 $62,000 $62,000 Do you recommend the investment?                
Please Calculate the WACC, the discounted payback period, and the net present value for the following...
Please Calculate the WACC, the discounted payback period, and the net present value for the following scenario. Show all work and clearly show how you came to your answers. A municipal stadium owned by a city stadium authority is thinking about updating it's grass field to turf. New turf will cost $750,000. A local company has offered to give you $100,000 to put their logo on the turf, which you will happily take if you decide to go forward with...
Determine the Payback Period, the Discounted Payback Period, and the Net Present Value for the following...
Determine the Payback Period, the Discounted Payback Period, and the Net Present Value for the following after-tax cash flow projections. Also tell me whether the IRR is greater or less then the RRR. A. Year ATCF 0 $(60,000) 1 21,000 2 27,000 3 24,000 4 16,000 Assume a 16% required rate of return
Determine the Payback Period, the Discounted Payback Period, and the Net Present Value for the following...
Determine the Payback Period, the Discounted Payback Period, and the Net Present Value for the following after-tax cash flow projections. Also tell me whether the IRR is greater or less then the RRR B. Year ATCF 0 (100,000) 1 (320,000) 2 130,000 3 185,000 4 200,000 5 195,000 6 150,000 Assume a 20% required rate of return
Calculate the payback period, net present value, profitability index, and internal rate of return for Project...
Calculate the payback period, net present value, profitability index, and internal rate of return for Project A. Assume a discount rate of 20%. Should the firm accept or reject Project A? Explain. If the firm must choose between Project A and Project B, which is the better choice? Explain. Under what circumstances should the modified internal rate of return be used instead of the standard internal rate of return? Project A Project B Year Cash Flow Year Cash Flow 0...
·How do you calculate Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR), and...
·How do you calculate Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR) for a given project and evaluate projects using each method? Explanation and example.
Payback Period, Net Present Value, and Internal Rate of Return An organization’s initial outlay for a...
Payback Period, Net Present Value, and Internal Rate of Return An organization’s initial outlay for a proposed project is $2,000,000. Use the table below to calculate the payback period, net present value, and internal rate of return for the project. Free Cash Flows Year Amount Year Amount 1 $0.00 6 $0.00 2 $0.00 7 $0.00 3 $1,000,000.00 8 $500,000.00 4 $50.00 9 $500,000.00 5 $750,000.00 10 $500,000.00 As the CEO of the organization, if the firm’s cost of capital is...
Calculate the ​(a​) net present value​ (NPV), ​(b​) profitability index​ (PI), and ​(c​) internal rate of...
Calculate the ​(a​) net present value​ (NPV), ​(b​) profitability index​ (PI), and ​(c​) internal rate of return​ (IRR) for Projects 1 and 2​ (cash flows shown​ below), assuming a required return of 13%. Year Project 1 Project 2 0 -$390 −​$420 1      ​$130      ​$130 2      ​$150      ​$140 3      ​$130      ​$150 4      ​$360      ​$310 a.  What is the NPV of Project​ 1? $___ ​​(Round to the nearest​ cent.) What is the NPV of Project​ 2? ​ $___ ​(Round to the nearest​...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT