a. What is the PV of adopting the system? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV of adopting the system? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is the net cash flow per day from adopting? Per check? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. PV www wwwww

a. What is the PV of adopting the system? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV of adopting the system? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is the net cash flow per day from adopting? Per check? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. PV www wwwww

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A potential project provides the following: Initial Investment = 36,101 Annual cash Flows = 12,101 period= 5 years What is the discount rate If NPV = 0? Answer in the format: #0.00 Answer as a percentage but without the % sign Example 0 0651 is entered as 6.51 Do not round intermediary calculations. Use full precision of your calculator or Excel. Do not include commas or dollar signs. Round properly to two decimal places Example: .157835 would be .16 Example: 2.3491 would be entered 2.35 HINT: Be sure your answer is percentage
To the closest year, how long will it take $200 to double if it is deposited and earns the fol-lowing rates? [Notes: (1) See the Hint for Problem 4-9. (2) This problem cannot be solved exactly with some financial calculators. For example, if you enter PV 5 2200, PMT 5 0, FV 5 400, and I 5 7 in an HP-12C and then press the N key, you will get 11 years for part a. The correct answer is 10.2448 years, which rounds to 10, but the calculator rounds up. However, the HP10BII gives the exact answer.] a. 7% b. 10% c. 18% d. 100%
ing annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. Do not round intermediate calculations. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) a. $600 per year for 10 years at 6%. $ b. $300 per year for 5 years at 3%. $ c. $600 per year for 5 years at 0%. $ d. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is,…
Please answer the second part of the question Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) $800 per year for 10 years at 14%.$ $400 per year for 5 years at 7%.$ $800 per year for 5 years at 0%.$ Now rework parts a, b, and c assuming that payments are made at…
You are developing a new product and you use a 12% discount rate to compute its NPV. Your bank, from whom you hope to obtain a loan, expresses concern that your discount rate is too low. How do you respond?
Rate of return analysis. Penne internal rate of return. The projested cash flow of a project (T-0 to T-5) is -S20,000. S2000, S8000, $12000, S8000, $2000, Briefly explain how you would caleulate the 1RR by nan and error if all you had was a hand calculator without financial funetion keys. DO NOT a. make any calculations.
10) Which of the following two options for purchasing an equipment has a lower net present cost? Assume a discount rate of 0.05. (Hint: Use Excel for easier calculations.) a. Initial payment of $2000, then $550 monthly for4 months. b. Initial payment of $3000, then $200 monthly for 5 months. 11) Why should a higher discount rate be applied to an investment with a higher risk?
why is my answer wrong? please correct it Required:2.2.1 Calculate the payback period and the accounting rate of return. 2.2.2 Malda Ltd requires a payback period of no more than 3 years and a return of at least 30%. Purelyon the basis of these criteria, should this project be accepted. Explain. 2.2.3 The payback period method makes a crucial omission in the calculation, namely the time valueof money. Complete the above computation using a method that accounts for the time value of money?On the basis of this calculation, should the project be accepted? Explain. my answer calculation of payback period Assumption : It is assumed that the cashflows given in the question are before depreciation and taxes. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Cash flow 220,000 200,000 120,000 110,000 50,000 - Depreciation (100,000) (100,000) (100,000) (100,000) (100,000) Earnings before tax 120,000 100,000 20,000 10,000 (50,000) Less: Tax at 30% 36,000 30,000 6,000 3,000 NIL…
ECONOMICS (UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS. NO LONG EXPLANATION NEEDED. BOX THE FINAL ANSWER.) Cartoon Network Courier Services plans to install a new radio frequency identification system that will help reduce the number of packages that are incorrectly delivered. The capital investment for the system is Php 4,120,000, and the projected annual savings are shown in the table below. The system’s market value at the EOY five is negligible, and the MARR is 18% per year. determine the following: a. What is the IRR of the system? Is the new system profitable? b. What is the simple payback period for this investment? c. What is the discounted payback period for this investment?
Use the information provided below to answer the following questions: 5.1 Calculate the Payback Period of Machine B (exoressed in years, months and days). 5.2 Calculate the Accounting Rate of Return (on average investment) of both machines (expressed to two decimal places). 5.3 Calculate the Net Present Value of each machine. 5.4 Which machine should be chosen if the time value of money is taken into account? Why? 5.5 Calculate the Internal Rate of Return of Machine B using interpolation (expressed to two decimal places), if the net cash flows are R140 000 per year for five years. INFORMATION Salsa Limited intends purchasing a new machine and has a choice between two machines, of which only one can be chosen. The following information pertaining to the two machines is available: Machine A Machine B Initial cost R500 000 R500 000 Cost of capital 14% 14% Expected economic life 5 years 5 years Expected disposal value R50 000 Depreciation per year R90 000 R100 000 Expected net profit Year…
The management of East Manufacturing needs a new high tech sorting machine and has two different proposals under consideration. They require a rate of return of 10% (discount rate) and the Accounting Department has prepared the following information: Initial Investment Useful Life of Equipment Net Annual Cash Flow Salvage Value Investment B: Click to open:↓ Ⓡ Clearly label and show calculations for full credit! No calculations = No credit. 1) Calculate the Payback Period for each option: Investment A: 2) Calculate the Net Present Value of each option: Investment A: $ 3,700,000 7 years $ 900,000 $0 Investment B: A $3,400,000 7 years $800,000 $90,000 B
You are developing a new product and you use a 12% discount rate to compute its NPV. Your banker, from whom you hope to obtain a loan, expresses concern that your discount rate is too low. How do you respond?

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