The Iggy Company is considering three capital expenditure projects. Relevant data on each project are as follows:   Project A Investment -275,000             Year 1 $40,000             Year 2 56,000             Year 3 80,295             Year 4 90,400             Year 5 55,000             Year 6 50,000             Year 7 45,000             Year 8 32,000               Project B Investment -275,000 Year 1 $72,000 Year 2 50,000 Year 3 66,000 Year 4 72,000 Year 5 29,000 Year 6 35,000 Year 7 22,000 Year 8 36,000   Project C Investment -275,000 Year 1 $82,000 Year 2 75,000 Year 3 65,000 Year 4 55,000 Year 5 45,000 Year 6 35,000 Year 7 25,000 Year 8 15,000   Required: Compute the Payback Period for each project. Select the best investment based on the payback period.     Answer

Lane Industries is considering three independent projects, each of which requires a $2.4 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are the following:   Project H (high risk): Cost of capital = 14% IRR = 16%   Project M (medium risk): Cost of capital = 9% IRR = 7%   Project L (low risk): Cost of capital = 9% IRR = 10%   Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 40% debt and 60% common equity, and it expects to have net income of $4,200,000. If Lane establishes its dividends from the residual dividend model, what will be its payout ratio?

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $34,000 and is expected to generate the following cash flows:   First Year Second Year Third Year Total Alpha Project $32,000   $22,000     $5,000   $59,000 Beta Project 8,000   23,500     28,000   59,500 Present value and future values table: https://openstax.org/books/principles-managerial-accounting/pages/time-value-of-money A. If the discount rate is 12%, compute the NPV of each project. Round your present value factor to three decimal places and final answer to answer to 2 decimal places. Alpha Project $_________ Beta Project $________ B. Which project should be recommended. _____________

Average Rate of Return Method, Net Present Value Method, and Analysis for a service company The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Front-End Loader Year 1 2 3 4 5 Total Year 1 2 3 4 5 6 7 8 9 10 Required: Operating Income $62,000 62,000 62,000 62,000 62,000 $310,000 Each project requires an investment of $620,000. Straight-line depreciation.will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Present Value of $1 at Compound Interest 6% 10% 15% 0.943 0.909 0.870 0.890 0.826 0.756 0.840 0.751 0.658 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.497 0.705 0.564 0.507 0.432 0.665 0.513 0.452 0.376 0.627 0.467 0.404 0.327 0.592 0.361 0.284 0.558 0.322 0.247 Front-End Loader Greenhouse 0.424 Net Cash Flow $187,000 187,000 187,000 0.386 187,000 187,000 $935,000…