Pharoah, Inc., a resort management company, is refurbishing one of its hotels at a cost of $6.589,023. Management expects that this will lead to additional cash flows of $1,510,000 for each of the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Pharoah go ahead with this project? (Round answer to 4 decimal places, e.g. 5.2516%.) The IRR of this project is The firm should Save for Later the project. Attempts: 0 of 1 used Submit Answer

Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2.000 for installation. how long before they will receive their initial invest back from future cash flows? What is the payback period for the initial costs? Projected Cash flows Year 1: 5,000 Year 2: 7,000 Year 3: 4,000 Year 4: 1,000 Post your answer as number of years with 2 decimal places, for example 5.55

The Gables manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will result in cost savings of $220,000 in the first year, followed by savings of $100,000 per year over the following 3 years. If the firm’s cost of capital is 9%, what is the discounted payback period for this project? (Do not round intermediate computations. Round final answer to two decimal places.) A. 2.76 years B. 2.58 years C. 2.25 years D. 2.40 years Thank you.

A project that costs $2,300 to install will provide annual cash flows of $730 for each of the next 5 years. a. Calculate the NPV if the opportunity cost of capital is 12%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV b. Is this project worth pursuing? Yes O No c. What is the project's internal rate of return IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) %24

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).

Vishano

Cains, Inc., a resort management company, is refurbishing one of its hotels at a cost of $8,498,918. Management expects that this will lead to additional cash flows of $1,960,000 for the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Cains go ahead with this project? (Round answer to 2 decimal places, e.g. 5.25%.) The IRR of this project is ________ % The firm should (reject or accept) the project

Rundle Company is considering investing in two new vans that are expected to generate combined cash inflows of $34,000 per year. The vans' combined purchase price is $93,000. The expected life and salvage value of each are seven years and $21,700, respectively. Rundle 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?

Vikrambhai

Subject: acounting