-ollowlng Is Information on two alternative Investments belng considered by Jolee Company. The company requires a 10% return fromIts Investments.Project A$(196,000)Project B$(141, 000)Initial investmentExpected net cash flows in:Year 149,00065,00089,29541,00059,00075, 00075,00075,000Year 2Year 3Year 499,40074,000Year 5Compute the Internal rate of return for each of the projects using excel functlons. (Round your answers to 2 declmal places.)IRRProject A%Project B< Prev9 of 9NextLType here to searchF11F1F6F7F8F9F10F2F3F4F5F123124.78TYUPGKSCN MBEI

Project A Total inflows=49000+65000+89295+99400+74000=$376,695

FOlTowing is Informaion on two aiternative Investments belng considered by Jolee Company. The company requires a 10% return from ts Investments. Project A $(196,000) Project B $(141, 000) Initial investment Expected net cash flows in: Year 1 49,000 65,000 89, 295 99,400 74,000 41,000 Year 2 59,000 Year 3 75, 000 75,000 75, 000 Year 4 Year 5 Compute the Internal rate of return for each of the projects using excel functlons. (Round your answers to 2 declmal places.) IRR Project A Project B

FOlTowing is Informaion on two aiternative Investments belng considered by Jolee Company. The company requires a 10% return from ts Investments. Project A $(196,000) Project B $(141, 000) Initial investment Expected net cash flows in: Year 1 49,000 65,000 89, 295 99,400 74,000 41,000 Year 2 59,000 Year 3 75, 000 75,000 75, 000 Year 4 Year 5 Compute the Internal rate of return for each of the projects using excel functlons. (Round your answers to 2 declmal places.) IRR Project A Project B

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $ (172,325 ) $ (146,960 ) Expected net cash flows in: Year 1 50,000 31,000 Year 2 43,000 44,000 Year 3 89,295 60,000 Year 4 90,400 77,000 Year 5 54,000 33,000 a. For each alternative project compute the net present value.b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose?
Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(171,325) Project B $(159,960) Initial investment Expected net cash flows in: 35,000 59,000 55,000 Year 1 54,000 45,000 87,295 81,400 65,000 Year 2 Year 3 73,000 20,000 Year 4 Year 5 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value.
Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 Initial investment $ (106,000 ) $ (172,000 ) Expected net cash flows in: Year 1 38,000 79,500 Year 2 48,500 69,500 Year 3 73,500 59,500 a. Compute each project’s net present value.b. Compute each project’s profitability index. If the company can choose only one project, which should it choose?
Fuente, Incorporated, has identified an investment project with the following cash flows. Cash Flow $700 925 1,125 1,250 Year 1 2 3 4 a.lf the discount rate is 11 percent, what is the future value of these cash flows in year 4? Future value at 11% b.What is the future value at a discount rate of 18 percent? Future value at 18%
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $ (181,325 ) $ (155,960 ) Expected net cash flows in: Year 1 35,000 27,000 Year 2 54,000 43,000 Year 3 77,295 61,000 Year 4 91,400 77,000 Year 5 65,000 20,000 a. For each alternative project compute the net present value.b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose? For each alternative project compute the net present value. Project A Initial Investment $181,325 Chart Values are Based on: i = % Year Cash Inflow x PV Factor =…
Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 10% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Initial investment Project X1 $ (98,000) Project X2 $ (144,000) Net cash flows in: Year 1 36,000 76,500 Year 2 46,500 Year 3 71,500 66,500 56,500 a. Compute each project's net present value. b. Compute each project's profitability index. If the company can choose only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's net present value. Note: Round your answers to the nearest whole dollar. Net Cash Flows Present Value of 1 at 10% Present Value of Net Cash Flows Project X1 Year 1 $ 36,000 Year 2 46,500 Year 3 71,500 Totals $ 154,000 $ 0 Initial investment Net present value $ Project X2 Year 1 $…
Assume a $50,000 investment and the following cash flowa for two aleternatives.. Year Investment A Investment B 1 $10,000 $20,000 2 $11,000 $25,000 3 $13,000 $15,000 4 $16,000 5 $30,000 Which alternative would you select under the payback method? 6
Following Is Information on two alternative Investments belng considered by Tiger Co. The company requires a 4% return from Its Investments. Project X1 $(100,000) Project X2 $(160,800) Initial investment Expected net cash flows in: Year 1 35,000 45,500 70,500 75,000 65, 000 55,000 Year 2 Year 3 Compute the Internal rate of return for each of the projects using Excel functlons. Based on Internal rate of return, Indicate whether each project Is acceptable. (Round your answers to 2 declmal places.) IRR Acceptable? Project X1 Project X2 Mc Graw Hill Lducation Type here to search *+ F10 F11 AI F2 F7 F8 F9 F3 F4 F5 F6 F1 & 23 4 5 7 T G H. V N M C * 0O B
A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,000 1,400 1,800 B $1,700 1,700 1,700 If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.PV(Investment A): $ __________PV(Investment B): $ __________ If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is __less than___ / __greater than__ the cost. The present value of investment B is __less than___ / __greater than__ cost.
Francoeur Co. has identified an investment project with the following cash flows: Year 1 2 3 4 Cash Flow $830 $1,150 $1,410 $1,550 If the discount rate is 8 percent, what is the present value of these cash flows as of Year O? $4,013.06 $3,406.47 $3,679.59 $4,549.11 $4,271.21
Consider two investments with the fo llowing sequences of cash flows:Net Cush FlowII Project A Project B0 -$30.000 -$15,000I $2,000 $LO,OOO2 $6,000 $10,0003 $12,000 $10,0004 $24 .000 $10,0005 $28,000 $5.000(a) Compute the r:' for each investment.(b) Plot the present-worth curve for each project on the same chart and find the interest rate that makes the two projects equivalent.(c) Tf A and Bare mutually exclusive investment projects, which project is more economically desirable at MARR of 15%?
gnment (II) Saved Fox Co. has identified an investment project with the following cash flows. Year Cash Flow $1,290 1,240 1,590 2. 3 1,950 a. If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 23 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 9 percent b. Present value at 17 percent C. Present value at 23 percent re to search