Janina, Incorporated, has the following mutually exclusive projects. Year Project A Project B 0123 -$22,000-$25,000 13,000 14,000 9,500 10,500 3,100 9,500 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B years years

ic Yo NS io cer ist bun ngs nnée Current Attempt in Progress Blossom Manufacturing Co. is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $905,000, and project B's cost is $1,247,300. Cash flows from both projects are given in the following table. Year 1 2 3 4 Project A $86,212 313,562 427,594 285,552 Project B $586,212 413,277 231,199 What are their discounted payback periods? (Round answers to 2 decimal places, e.g. 15.25. If discounted payback period exceeds life of the project, enter 0.00 for the answer.) Discounted payback period of project A Discounted payback period of project B will he accepted with a discount rate of 8 percent? átv zoom

Consider the following fourmutually exclusive projects: Project J, K, L, and M. Assume that the investment in each project gets perpetually renewed (all the projects are perpetual). The cost of capital is 16%. Rank the projects according to profitability   J K L M Initial investment 49,000 75,000 65,000 35,000 Annual cash flow 21,000 8,000 16,000 13,000 Lifecycle (years) 6 26 14 5s You are going to want to find the NPV and EAC of the cash flows. Since all of the cash flows are the same, you can use the PV function. Pay attention to the sign of the cash flows! You can also use the RANK function to rank the EACs for the four projects.

Answer all the questions QUESTION 1 Questions a. After-tax cash flows for two mutually exclusive projects (with economic lives of four years each) are: Y Year Project X Project K(12,000) 5,000 01234 5,000 5,000 5,000 i. ii. iii. K(12,000) 0 0 0 25,000 The company's cost of capital is 10 percent. Compute the following: The internal rate of return for each project. The net present value for each project. Which project should be selected? Why? b. A firm is considering the purchase of an automatic machine for K6,200. The machine has an installation cost of K800 and zero salvage value at the end of its expected life of five years. Depreciation is by the straight-line method with the half-year convention. The machine is considered a five-year property. Expected cash savings before tax is K1,800 per year over the five years. The firm is in the 40 percent tax bracket. The firm has determined the cost of capital (or minimum required rate of return) as 10 percent after taxes. Should the firm…

7 Present work in Excel   Consider the following:   Financed amount: $385,000   Cost of funds: 7.25% (interest rate)   30-year amortization   Calculate (round to nearest dollar):           Annual payment amount (this is monthly payment x 12 --- then rounded to nearest dollar)   Amount of 'Interest paid' during year 3 (rounded to nearest dollar)   Amount of 'Principal paid' during year 3 (rounded to nearest dollar)

7 Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A ts Time: 1 2 3 4 5 Cash flow: -$2,400 $910 $900 $800 $580 $380 Print Payback years ferences Should the project be accepted or rejected? аccepted rejected

Subject :- Accounting

am. 118.