1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value. If requir round to the nearest dollar. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Amount to be invested Net present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network 3. The maintenance equipment has the largest present value index. Although maintenance equipment has the largest net present value, it returns less present value per dollar invested than does the maintenance equipment , as revealed by the present value indexes. The present value index for the maintenance equipment is less than 1, indicating that does not meet the minimum rate of return standard.

Net Present Value Method, Present Value Index, and Analysis for a service company

Choices for the last requirement, "determine the approximate internal rate of return from the choicies (pick the closest answer. a. 29%  b. 20% c. 26% d. 22%

The net present value for Proposals X and Y has been calculated on the basis of the data given below.   Proposal X Proposal Y Amount to be invested $145,000   $280,000   Total present value of net cash flow 172,000   320,000   Net present value 27,000   40,000   Determine the present value index for each proposal. Round your answers to two decimal places.   Present Value Index Proposal X $fill in the blank 1 Proposal Y $fill in the blank 2

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. (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.) Do not round intermediate calculations. Round your answers to the nearest cent. $200 per year for 10 years at 8%. $   $100 per year for 5 years at 4%. $   $200 per year for 5 years at 0%. $   Now rework parts a, b, and c assuming that payments are made…

Determine the future value of the following single amounts (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.): Invested Amount Future Value 1. 14,000 7% 15 2. 21,000 6% 16 3. 33,000 12% 15 54,000 5% 11 4.

Answer the following questions including the one on the image provided 2. What is the present values of Team's Offer using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.) 3.What is the present values of Counteroffer using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.) 4. Which of the three contacts has the highest present value?

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          Save for Later

How would i solve number 2 on this problem

Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $288,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $36,000. The company's minimum desired rate of return for net present value analysis is 12%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place. 8 X %