A potential investment has a cost of $380,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $171,022 and annual cash operating expenses are expected to be $67,372. The expected salvage value at the end of the investment's life is $30,000. The company has a before-tax discount rate of 16%. Required: Calculate the following. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (.e. .055-5,5 %). Enter negative amounts with a minus sign.) Annual PMT of the investment FV of the investment NPV of the investment IRR of the investment 000 %
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- Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.A potential investment has a cost of $395,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $267,382 and annual cash operating expenses are expected to be $105,332. The expected salvage value at the end of the investment's life is $50,000. The company has a before-tax discount rate of 17%. Required: Calculate the following. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.) Annual PMT of the investment FV of the investment NPV of the investment IRR of the investment $ LA $ $ LA %
- Required information A potential investment has a cost of $350,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $279,428 and annual cash operating expenses are expected to be $110,078. The expected salvage value at the end of the investment's life is $50,000. The company has a before-tax discount rate of 15%. Required: Calculate the following. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (.e. .055-5.5%). Enter negative amounts with a minus sign.) Annual PMT of the investment FV of the investment NPV of the investment IRR of the investment $1200000 $ 809571Required information A potential investment has a cost of $440,000 and a useful life of 7 years. Annual cash sales from the investment are expected to be $183,068 and annual cash operating expenses are expected to be $72,118. The expected salvage value at the end of the investment's life is $35,000. The company has a before-tax discount rate of 15%. Required: Calculate the following. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.) Annual PMT of the investment FV of the investment NPV of the investment IRR of the investment $ LA GA GA %Required information A potential investment has a cost of $380,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $267,382 and annual cash operating expenses are expected to be $105,332. The expected salvage value at the end of the investment's life is $40,000. The company has a before-tax discount rate of 15%. Required: Calculate the following. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.) Annual PMT of the investment FV of the investment NPV of the investment IRR of the investment $ 162050 GA 69 40000
- An asset was purchased for P66,000. The asset is expected to last for 6 years and will have a salvage value of P16,000. The company expects the income before tax to be P7,200 and the tax rate of the company is 30%. What is the average return on investment (accounting rate of return)? Group of answer choices 17.6% 12.3% 7.6% 10.9%Required information A potential investment has a cost of $395,000 and a useful life of 7 years. Annual cash sales from the investment are expected to be $237,270 and annual cash operating expenses are expected to be $93,470. The expected salvage value at the end of the investment's life is $35,000. The company has a before-tax discount rate of 16%. Required: Calculate the following. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter egative amounts with a minus sign.) Annual PMT of the investment V of the investment NPV of the investment RR of the investment %An investment of P135 000.00 is being considered for a new lathe machine. Estimated economic life of the lathe is 12 years with a salvage value of P10 000.00. Projected annual income and expenses for the investment are P80 000.00 and P30 000.00, respectively. Using an MARR of 15% compounded annually and applying PW analysis, determine if the lathe should be purchased. (Ans. Purchase is justified, P137 900.00)
- An asset was purchased for P66,000. The asset is expected to last for 6 years and will have a salvage value of P16,000. The company expects the income before tax to be P7,200 and the tax rate of the company is 30%. What is the average return on investment (accounting rate of return)? choices: 17.6% 12.3% 7.6% 10.9%A firm can purchase a centrifugal separator (5-year MACRS property) for $22,000. The estimated salvage value is $4,000 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be $2,200. These O&M costs are projected to increase by $1,000 per year each year thereafter. The income tax rate is 24% and the MARR is 11% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis? CAN YOU DO THIS PROBLEM BY HAND? AND NOT USING EXCEL I WOULD REALLY APPRECIATE IT!!!!A firm can purchase a centrifugal separator (5-year MACRS property) for$17,000.The estimated salvage value is$3,000after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be$1,700.These O&M costs are projected to increase by$1,500per year each year thereafter. The income tax rate is23%and the MARR is12% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis?