A project has an initial cost of $8,900 and produces cash inflows of $2,800, $5,200, and$1,600 over the next three years, respectively. What is the discounted payback period if therequired rate of return is 6 percent?IThe liabilities of Olga Company are $87,060. Also, common stock account is $145,800, dividendsare $91,610, revenues are $443,250, and expenses are $316,360. What is the amount of OlgaCompany's total assets?£0.000 and-

Let us analyse the computations in a systematic manner, examining each step individually. 1.…

Answered: A project has an initial cost of $8,900…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.
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A project has an initial cost of $8,900 and produces cash inflows of $2,800, $5,200, and $1,600 over the next three years, respectively. What is the discounted payback period if the required rate of return is 6 percent? I The liabilities of Olga Company are $87,060. Also, common stock account is $145,800, dividends are $91,610, revenues are $443,250, and expenses are $316,360. What is the amount of Olga Company's total assets? initial cost of 8-900-and-
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A project has an initial investment of $1,506. The cash inflows in the next four years are $392, $459, $555, and $555. If the discount rate is 12%, calculate its profitability index..
Perez Company is considering an investment of $26,945 that provides net cash flows of $8,500 annually for four years.(a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)(b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return?
Perez Company is considering an investment of $20,957 that provides net cash flows of $6,900 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals. (b) The hurdle rate is 9%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return % Required A Required B

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