Montego Production Company is considering an investment in new machinery for its factory. Various information about the proposed investment follows: Initial investment    $ 860,000     Useful life    6    yearsSalvage value    $ 20,000     Annual net income generated    $ 66,000     Montego’s cost of capital    11%     Assume straight line depreciation method is used.    4. Recalculate Montego's NPV assuming its cost of capital is 12 percent. (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 amount should be indicated by a minus sign. Round your answer to 2 decimal places. annually:4.1114, other: 0.5066

Pina Colada Company is considering a capital investment of $419,870 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash flows are expected to be $39,000 and $121,000, respectively. Pina Colada has a 12% cost of capital rate, which is the minimum acceptable rate of return on the investment. Click here to view PV tables. (a) Compute the annual rate of return. (Round answer to 1 decimal place, e.g. 15.5.) Annual rate of return. % Compute the cash payback period on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period years

Egy Company is considering three capital expenditure projects. Relevant data for the projects are as follows Project Investment 22A $243.300 23A 274.200 24A 280,500 Project 22A Annual Income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation Click here to view the factor table (a) 23A Annual Income $16.860 Determine the internal rate of return for each project. (Round answers O decimal places, eg: 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided) 24A 20,730 15,700 (b) Life of Project 6 years 9 years 7 years Internal Rate of Return If Iggy Company's required rate of return is 11%, which projects are acceptable The following project(s) are acceptable

Montego Production Company is considering an investment in new machinery for its factory. Various information about the proposed investment follows: Initial investment    $ 860,000     Useful life    6    yearsSalvage value    $ 20,000     Annual net income generated    $ 66,000     Montego’s cost of capital    11%     Assume straight line depreciation method is used.    4. Recalculate Montego's NPV assuming its cost of capital is 12 percent. (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 amount should be indicated by a minus sign. Round your answer to 2 decimal places. annually:4.1114, other: 0.5066 Help Montego evaluate this project by calculating each of the following: Required:2. Payback period.

The following data pertain to an investment proposal (Ignore income taxes.):   Cost of the investment $ 35,000   Annual Income $ 12,000   Estimated salvage value   $ 6,000   Life of the project 4 years Discount rate 10%     The net present value of the proposed investment is closest to: Round to nearest dolla