Question Content Area Present value of $1 Periods 6% 8% 10% 12% 14% 16% 1 0.94340 0.92593 0.90909 0.89286 0.87719 0.86207 2 0.89000 0.85734 0.82645 0.79719 0.76947 0.74316 3 0.83962 0.79383 0.75131 0.71178 0.67497 0.64066 4 0.79209 0.73503 0.68301 0.63552 0.59208 0.55229 5 0.74726 0.68058 0.62092 0.56743 0.51937 0.47611 6 0.70496 0.63017 0.56447 0.50663 0.45559 0.41044 7 0.66506 0.58349 0.51316 0.45235 0.39964 0.35383 8 0.62741 0.54027 0.46651 0.40388 0.35056 0.30503 9 0.59190 0.50025 0.42410 0.36061 0.30751 0.26295 10 0.55839 0.46319 0.38554 0.32197 0.26974 0.22668 Present value of an annuity of $1 Periods 6% 8% 10% 12% 14% 16% 1 0.94340 0.92593 0.90909 0.89286 0.87719 0.86207 2 1.83339 1.78326 1.73554 1.69005 1.64666 0.74316 3 2.67301 2.57710 2.48685 2.40183 2.32163 0.64066 4 3.46511 3.31213 3.16987 3.03735 2.91371 0.55229 5 4.21236 3.99271 3.79079 3.60478 3.43308 0.47611 6 4.91732 4.62288 4.35526 4.11141 3.88867 0.41044 7 5.58238 5.20637 4.86842 4.56376 4.28830 0.35383 8 6.20979 5.74664 5.33493 4.96764 4.63886 0.30503 9 6.80169 6.24689 5.75902 5.32825 4.94637 0.26295 10 7.36009 6.71008 6.14457 5.65022 5.21612 0.22668 Layton Company is considering two competing projects that will change its current manufacturing process. The after-tax cash flows associated with the two investments are as follows: Year Project X Project Y 0 $(69,000) $(285,000) 1 --- 159,820 2 83,490 159,820 The company's cost of capital is 10%. A. Compute the net present value for Project X. (Round answer to the nearest dollar.) $___ B. Compute the net present value for Project Y. (Round answer to the nearest dollar.) $__ C. Compute the internal rate of return for Project X. (Round discount factor to five decimal places.)___% D. Compute the internal rate of return for Project Y. (Round discount factor to five decimal places.)___%
Question Content Area Present value of $1 Periods 6% 8% 10% 12% 14% 16% 1 0.94340 0.92593 0.90909 0.89286 0.87719 0.86207 2 0.89000 0.85734 0.82645 0.79719 0.76947 0.74316 3 0.83962 0.79383 0.75131 0.71178 0.67497 0.64066 4 0.79209 0.73503 0.68301 0.63552 0.59208 0.55229 5 0.74726 0.68058 0.62092 0.56743 0.51937 0.47611 6 0.70496 0.63017 0.56447 0.50663 0.45559 0.41044 7 0.66506 0.58349 0.51316 0.45235 0.39964 0.35383 8 0.62741 0.54027 0.46651 0.40388 0.35056 0.30503 9 0.59190 0.50025 0.42410 0.36061 0.30751 0.26295 10 0.55839 0.46319 0.38554 0.32197 0.26974 0.22668 Present value of an annuity of $1 Periods 6% 8% 10% 12% 14% 16% 1 0.94340 0.92593 0.90909 0.89286 0.87719 0.86207 2 1.83339 1.78326 1.73554 1.69005 1.64666 0.74316 3 2.67301 2.57710 2.48685 2.40183 2.32163 0.64066 4 3.46511 3.31213 3.16987 3.03735 2.91371 0.55229 5 4.21236 3.99271 3.79079 3.60478 3.43308 0.47611 6 4.91732 4.62288 4.35526 4.11141 3.88867 0.41044 7 5.58238 5.20637 4.86842 4.56376 4.28830 0.35383 8 6.20979 5.74664 5.33493 4.96764 4.63886 0.30503 9 6.80169 6.24689 5.75902 5.32825 4.94637 0.26295 10 7.36009 6.71008 6.14457 5.65022 5.21612 0.22668 Layton Company is considering two competing projects that will change its current manufacturing process. The after-tax cash flows associated with the two investments are as follows: Year Project X Project Y 0 $(69,000) $(285,000) 1 --- 159,820 2 83,490 159,820 The company's cost of capital is 10%. A. Compute the net present value for Project X. (Round answer to the nearest dollar.) $___ B. Compute the net present value for Project Y. (Round answer to the nearest dollar.) $__ C. Compute the internal rate of return for Project X. (Round discount factor to five decimal places.)___% D. Compute the internal rate of return for Project Y. (Round discount factor to five decimal places.)___%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Question Content Area
Present value of $1
| Periods | 6% | 8% | 10% | 12% | 14% | 16% |
|---|---|---|---|---|---|---|
| 1 | 0.94340 | 0.92593 | 0.90909 | 0.89286 | 0.87719 | 0.86207 |
| 2 | 0.89000 | 0.85734 | 0.82645 | 0.79719 | 0.76947 | 0.74316 |
| 3 | 0.83962 | 0.79383 | 0.75131 | 0.71178 | 0.67497 | 0.64066 |
| 4 | 0.79209 | 0.73503 | 0.68301 | 0.63552 | 0.59208 | 0.55229 |
| 5 | 0.74726 | 0.68058 | 0.62092 | 0.56743 | 0.51937 | 0.47611 |
| 6 | 0.70496 | 0.63017 | 0.56447 | 0.50663 | 0.45559 | 0.41044 |
| 7 | 0.66506 | 0.58349 | 0.51316 | 0.45235 | 0.39964 | 0.35383 |
| 8 | 0.62741 | 0.54027 | 0.46651 | 0.40388 | 0.35056 | 0.30503 |
| 9 | 0.59190 | 0.50025 | 0.42410 | 0.36061 | 0.30751 | 0.26295 |
| 10 | 0.55839 | 0.46319 | 0.38554 | 0.32197 | 0.26974 | 0.22668 |
Present value of an
| Periods | 6% | 8% | 10% | 12% | 14% | 16% |
|---|---|---|---|---|---|---|
| 1 | 0.94340 | 0.92593 | 0.90909 | 0.89286 | 0.87719 | 0.86207 |
| 2 | 1.83339 | 1.78326 | 1.73554 | 1.69005 | 1.64666 | 0.74316 |
| 3 | 2.67301 | 2.57710 | 2.48685 | 2.40183 | 2.32163 | 0.64066 |
| 4 | 3.46511 | 3.31213 | 3.16987 | 3.03735 | 2.91371 | 0.55229 |
| 5 | 4.21236 | 3.99271 | 3.79079 | 3.60478 | 3.43308 | 0.47611 |
| 6 | 4.91732 | 4.62288 | 4.35526 | 4.11141 | 3.88867 | 0.41044 |
| 7 | 5.58238 | 5.20637 | 4.86842 | 4.56376 | 4.28830 | 0.35383 |
| 8 | 6.20979 | 5.74664 | 5.33493 | 4.96764 | 4.63886 | 0.30503 |
| 9 | 6.80169 | 6.24689 | 5.75902 | 5.32825 | 4.94637 | 0.26295 |
| 10 | 7.36009 | 6.71008 | 6.14457 | 5.65022 | 5.21612 | 0.22668 |
Layton Company is considering two competing projects that will change its current manufacturing process. The after-tax cash flows associated with the two investments are as follows:
| Year | Project X | Project Y |
|---|---|---|
| 0 | $(69,000) | $(285,000) |
| 1 | --- | 159,820 |
| 2 | 83,490 | 159,820 |
The company's cost of capital is 10%.
A. Compute the
B. Compute the net present value for Project Y. (Round answer to the nearest dollar.) $__
C. Compute the
D. Compute the internal rate of return for Project Y. (Round discount factor to five decimal places.)___%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education