Brett Collins is reviewing his company's investment in a cement plant. The company paid $16,000,000 five years ago to acquire the plant. Now top management is considering an opportunity to sell it. The president wants to know whether the plant has met original expectations before he decides its fate. The company's desired rate of return for present value computations is 10 percent. Expected and actual cash flows follow: (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Expected Actual Required Year 1 $3,310,000 2,600,000 Year 2 $5,090,000 2,980,000 Year 3 $4,560,000 4,860,000 Year 4. Year 5 $5,090,000 $4,290,000 3,810,000 3,540,000 a.&b. Compute the net present value of the expected and actual cash flows as of the beginning of the investment. Note: Negative amounts should be indicated by a minus sign. Round your intermediate calculations and final answers to the nearest whole dollar.

Birkenstock is considering an investment in a nylon-knitting machine. The machine requires an initial investment of $27,300, has a five-year life, and has no residual value after five years. The company's cost of capital is 10.41%. The company has estimated expected cash inflows for three scenarios: pessimistic, most likely, and optimistic. These expected cash inflows are listed in the following table. Calculate the range for the NPV across the three scenarios. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year 1 2 3 4 5 Pessimistic $6,720 7,180 8,680 7,770 5.800 Expected cash inflows Most likely $9,240 10,150 11,790 10,740 7.840 Optimistic $11,830 13,260 15,800 12,790 8.780

Thornton Company is considering investing in two new vans that are expected to generate combined cash inflows of $26,000 per year. The vans' combined purchase price is $95,500. The expected life and salvage value of each are four years and $20,000, respectively. Thornton has an average cost of capital of 16 percent. (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required a. Calculate the net present value of the investment opportunity. Note: Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places. b. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted. a. Net present value b. Will the return be above or below the cost of capital? b. Should the investment opportunity be accepted? Above Accepted

Chaquille's K-House, Inc. made an investment in a project with an initial cost of $11,064,450. This investment was for 8 years and had no residual value. The company expects to receive yearly net cash inflows of $2,603,400. Management is requiring a return of 12% on the investment. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).

Brett Collins is reviewing his company's investment in a cement plant. The company paid $15.500,000 five years ago to acquire the plant. Now top management is considering an opportunity to sell it. The president wants to know whether the plant has met original expectations before he decides its fate. The company's desired rate of return for present value computations is 10 percent. Expected and actual cash flows follow: (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Expected Actual Year 1 $3,380,000 2,700,000 Year 2 $4,950,000 3,060,000 Net present value (expected) Net present value (actual) Year 3 $4,580,000 4,900,000 Year 4 $5,040,000 Year 5 $4,250,000 3,860,000 3,530,000 Required a.&b. Compute the net present value of the expected and actual cash flows as of the beginning of the investment. Note: Negative amounts should be Indicated by a minus sign. Round your Intermediate calculations and final answers to the nearest whole dollar.

The management of Nixon Corporation is investigating purchasing equipment that would cost $550,000 and have a 7 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $380,000 per year and cash operating expenses by $219,000 per year. (Ignore income taxes.)   Required: Determine the simple rate of return on the investment. (Round your answer to 1 decimal place.)

Your company is evaluating an investment project. The project would require buying a piece of machinery that costs $23.43 million dollars. As part of the effort to raise money for the project, your company will also sell an old piece of machinery right away which will generate an estimated after-tax salvage of $11.39 million dollars. Assuming the above are all the investment-related activities for your company. What're the project's initial cash flows from investing activities? Note: your answer should be in millions of dollars.

Management thinks that, while all of the assumptions about cash flows are the same, but rather than a four-year life, the product will have a six-year life (the salvage of the equipment will also remain the same at end of 6 years as what was estimated for 4 years); there is another overhaul needed at the end of year 2 and 4 as well).  Using a 19% required rate of return, compute the NPV.

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $20 million Operating costs 16 million Interest expense 2 million The company has a 25% tax rate, and its WACC is 13%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the project's operating cash flow for the first year (t = 1)? Round your answer to the nearest dollar.$      If this project would cannibalize other projects by $1.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar.The firm's OCF would now be $   .

Aa 27.