EBK CFIN
EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Crane Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45
percent. The cost of this project will be $6,484,859. It will result in additional cash flows of $1,710,200 for the next eight years. The
discount rate is 12.92 percent.
Excel Template
(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have
different values. When using this template, copy the problem statement from this screen for easy reference to the values you've
been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of
the problem.)
a. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25)
The project's payback period is
years
b. What is the NPV for this project? (Round intermediate calculations and final answers to O decimal places, e.g. 1,251. Do not round dicount
factor values.)
The project's NPV is $
c. What is the IRR? (Round answer to 2 decimal places, e.g. 15.25%.)
The project's IRR is
%
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Transcribed Image Text:Question 17 of 30 < > View Policies -/0.35 : Current Attempt in Progress Crane Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $6,484,859. It will result in additional cash flows of $1,710,200 for the next eight years. The discount rate is 12.92 percent. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) a. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25) The project's payback period is years b. What is the NPV for this project? (Round intermediate calculations and final answers to O decimal places, e.g. 1,251. Do not round dicount factor values.) The project's NPV is $ c. What is the IRR? (Round answer to 2 decimal places, e.g. 15.25%.) The project's IRR is % eTextbook and Media Save for Later Using multiple attempts will impact your score. 20% score reduction after attempt 2 Q Search Attempts: 0 of 3 used Submit Answer
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