M11-6 (Algo) Calculating Net Present Value [LO 11-3] Citrus Company is considering a project with estimated annual net cash flows of $23,430 for four years that is estimated to cost $110,000. Citrus's cost of capital is 6 percent. Required: 1. Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) 2. Based on NPV, determine whether project is acceptable to Citrus. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answer to 2 decimal places. Net Present Value < Required 1 Required 2 > Show less

19 es TB MC Qu. 14-36 (Algo) Moates Corporation has... Moates Corporation has provided the following data concerning an investment project that it is considering: $ 190,000 $ 120,000 per year 4 years 9% Initial investment Annual cash flow Expected life of the project Discount rate Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to: Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Multiple Choice $190,000 $198,680 $(70,000)

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Project A requires an original investment of $64,300. The project will yield cash flows of $19,600 per year for seven years. Project B has a calculated net present value of $3,760 over a four-year life. Project A could be sold at the end of four years for a price of $14,000. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Use the tables above. (a) Using the present value tables above, determine the net present value of Project A over a four-year life with salvage value assuming a minimum rate of return of 12%. Round your answer to two decimal places. Enter negative values as negative numbers.$fill in the blank 1 (b) Which…

A project requires an increase of $2100 in Net Working Capital at the beginning of the project, which will be fully recovered after the completion of the project.  Equipment with a book value of $11,000 will be sold at the end of the project for a salvage value of $6,000.  The tax rate is 20%.  What is the incremental free cash flow in the year following the end of the project? Question 3Answer a. $9100 b. $7100 c. $4900 d. $2900

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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             Time: 0 1 2 3 4 5 Cash flow: −$2,100 $790 $810 $740 $520 $320     Payback:  ? Years

OF CO Cum Oriole Company is considering two capital investment proposals. Estimates regarding each project are provided below: Initial investment Annual net income Net annual cash inflow Estimated useful life Salvage value Periods 5 Project Soup $400000 48000 124000 5 years 0 The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 10% 12% 9% 62%. 12.0%, 24% Ⓒ31,0% 11% 3.89 3.791 3.696 3.605 4.486 4.355 4.231 4.111 The annual rate of return for Project Soup is Project Nuts $600000 64000 155000 6 years 0

M11-6 (Algo) Calculating Net Present Value [LO 11-3] Citrus Company is considering a project with estimated annual net cash flows of $29,820 for ten years that is estimated to cost $140,000. Citrus's cost of capital is 12 percent. Required: 1. Determine the net present value of the project. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) 2. Based on NPV, determine whether project is acceptable to Citrus. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answer to 2 decimal places. Show less A