Problem 25-01A
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful...
Problem 25-01A
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project
Edge
Project
Clayton
Capital investment
$171,200
$187,250
$208,000
Annual net income:
Year 1
14,980
19,260
28,890
2
14,980
18,190
24,610
3
14,980
17,120
22,470
4
14,980
12,840
13,910
5
14,980
9,630
12,840
Total
$74,900
$77,040
$102,720
Depreciation is computed by the straight-line method with no
salvage value. The company’s cost of capital is 15%. (Assume that
cash flows occur evenly throughout the year.)
Click here to view the factor table.
Compute the cash payback period for each project.
(Round answers to 2 decimal places, e.g.
10.50.)
Project Bono
enter the cash payback period in years rounded to 2 decimal
places
years
Project Edge
enter the cash payback period in years rounded to 2 decimal
places
years
Project Clayton
enter the cash payback period in years rounded to 2 decimal
places
years
Link to Text
Link to Video
Compute the net present value for each project.
(Round answers to 0 decimal places, e.g. 125. If the
net present value is negative, use either a negative sign preceding
the number eg -45 or parentheses eg (45).For
calculation purposes, use 5 decimal places as displayed in the
factor table provided.)
Project Bono
Project Edge
Project
Clayton
Net present value
$enter a dollar amount rounded to 0 decimal places
$enter a dollar amount rounded to 0 decimal places
$enter a dollar amount rounded to 0 decimal places
Link to Text
Link to Video
Compute the annual rate of return for each project.
(Hint: Use average annual net income in your computation.)
(Round answers to 2 decimal places, e.g.
10.50%.)
Project Bono
Project Edge
Project
Clayton
Annual rate of return
enter percentages rounded to 2 decimal places %
enter percentages rounded to 2 decimal places %
enter percentages rounded to 2 decimal places %
Link to Text
Link to Video
Rank the projects on each of the foregoing bases. Which project
do you recommend?
Project
Cash Payback
Net
Present Value
Annual Rate of Return
Bono
select a ranking number
select a ranking number
select a ranking number
Edge
select a ranking number
select a ranking number
select a ranking number
Clayton
select a ranking number
select a ranking number
select a ranking number
The best project is select a project
.
Click if you would like to
Show Work for this question:
Problem 25-01A
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project
Edge
Project
Clayton
Capital investment
$171,200
$187,250
$208,000
Annual net income:
Year 1
14,980
19,260
28,890
2
14,980
18,190
24,610
3
14,980
17,120
22,470
4
14,980
12,840
13,910
5
14,980
9,630
12,840
Total
$74,900
$77,040
$102,720
Depreciation is computed by the straight-line method with no
salvage value. The company’s cost...
Problem 12-1A U3 Company is considering three long-term capital
investment proposals. Each investment has a useful life of 5 years.
Relevant data on each project are as follows. Project Bono Project
Edge Project Clayton Capital investment $171,200 $187,250 $206,000
Annual net income: Year 1 14,980 19,260 28,890 2 14,980 18,190
24,610 3 14,980 17,120 22,470 4 14,980 12,840 13,910 5 14,980 9,630
12,840 Total $74,900 $77,040 $102,720 Depreciation is computed by
the straight-line method with no salvage value. The company’s...
Problem 25-01A a-d (Video) (Part Level
Submission)
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project Edge
Project Clayton
Capital investment
$160,000
$175,000
$200,000
Annual net income:
Year 1
14,000
18,000
27,000
2
14,000
17,000
23,000
3
14,000
16,000
21,000
4
14,000
12,000
13,000
5
14,000
9,000
12,000
Total
$70,000
$72,000
$96,000
Depreciation is computed by the straight-line method with no...
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project
Edge
Project
Clayton
Capital investment
$ 164,800
$ 180,250
$ 204,000
Annual net income:
Year 1
14,420
18,540
27,810
2
14,420
17,510
23,690
3
14,420
16,480
21,630
4
14,420
12,360
13,390
5
14,420
9,270
12,360
Total
$ 72,100
$ 74,160
$ 98,880
Depreciation is computed by the straight-line method with no
salvage...
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows. I got all the answers by my
computation for average rate of return Is wrong
Project
Bono
Project Edge
Project
Clayton
Capital
investment
$164,800
$180,250
$206,000
Annual net
income:
Year 1
14,420
18,540
27,810
2
14,420
17,510
23,690
3
14,420
16,480
21,630
4
14,420
12,360
13,390
5
14,420
9,270
12,360
Total
$72,100
$74,160
$98,880
Depreciation...
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project Edge
Project Clayton
Capital investment
$161,600
$176,750
$204,000
Annual net income:
Year 1
14,140
18,180
27,270
2
14,140
17,170
23,230
3
14,140
16,160
21,210
4
14,140
12,120
13,130
5
14,140
9,090
12,120
Total
$70,700
$72,720
$96,960
Depreciation is computed by the straight-line method with no
salvage value. The company’s cost of capital...
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows. Project Bono Project Edge
Project Clayton Capital investment $174,400 $190,750 $218,000
Annual net income: Year 1 15,260 19,620 29,430 2 15,260 18,530
25,070 3 15,260 17,440 22,890 4 15,260 13,080 14,170 5 15,260 9,810
13,080 Total $76,300 $78,480 $104,640 Depreciation is computed by
the straight-line method with no salvage value. The company’s cost
of...
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project
Edge
Project
Clayton
Capital investment
$ 171,200
$ 187,250
$ 202,000
Annual net income:
Year 1
14,980
19,260
28,890
2
14,980
18,190
24,610
3
14,980
17,120
22,470
4
14,980
12,840
13,910
5
14,980
9,630
12,840
Total
$ 74,900
$ 77,040
$ 102,720
Depreciation is computed by the straight-line method with no
salvage...
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project Edge
Project Clayton
Capital investment
$164,800
$180,250
$202,000
Annual net income:
Year 1
14,420
18,540
27,810
2
14,420
17,510
23,690
3
14,420
16,480
21,630
4
14,420
12,360
13,390
5
14,420
9,270
12,360
Total
$72,100
$74,160
$98,880
Depreciation is computed by the straight-line method with no
salvage value. The company’s cost of capital...
U3 Company is considering three long-term capital investment
proposals. Each investment has a useful life of 5 years. Relevant
data on each project are as follows.
Project Bono
Project
Edge
Project
Clayton
Capital investment
$163,200
$178,500
$204,000
Annual net income:
Year 1
14,280
18,360
27,540
2
14,280
17,340
23,460
3
14,280
16,320
21,420
4
14,280
12,240
13,260
5
14,280
9,180
12,240
Total
$71,400
$73,440
$97,920
Depreciation is computed by the straight-line method with no
salvage value. The company’s cost of capital...
ekkarill92 answered 10 months ago