Whispering Winds Company is considering an investment which will return a lump sum of $2,590,000 SIx years amount should Whispering Winds Company pay for this investment to earn an 11% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 5,275.) Click here to view the factor table. Amount pay for investment 2$

Whispering Winds Company is considering an investment which will return a lump sum of $2,590,000 SIx years amount should Whispering Winds Company pay for this investment to earn an 11% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 5,275.) Click here to view the factor table. Amount pay for investment 2$

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...

See similar textbooks

Similar questions

Crane Company is considering an investment that will return a lump sum of $830,000, 6 years from now. Click here to view the factor table 1. Table 2 Table 3 Table 4 What amount should Crane Company pay for this investment to earn an 12% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 5.24571. Round answer to 2 decimal places, e.g. 25.25.) Crane Company should pay $
Wildhorse Co. is considering an investment that will return a lump sum of $928,900, 8 years from now. For calculation purposes, use 5 decimal places as displayed in the factor table What amount should Wildhorse Co. pay for this investment to earn an 12% return. ( round answer to 2 decimal places, e.g. 25.25) Lincoln Company Should pay?
Pharoah Company is considering an investment that will return a lump sum of $931,000 4 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Pharoah Company pay for this investment to earn an 8% return? (Round answer to 2 decimal places, eg. 25.25.) Lincoln Company should pay $ 684,974.46
Cullumber Company is considering an investment that will return a lump sum of $830,000 6 years from now. Click here to view the factor table. What amount should Cullumber Company pay for this investment to earn an 12% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.) Cullumber Company should pay eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Oriole Company is considering an investment that will return a lump sum of $879,000 3 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Oriole Company pay for this investment to earn an 9% return? (Round answer to 2 decimal places, e.g. 25.25.) Lincoln Company should pay $
Sandhill Company earns 11% on an investment that will return $459,000 8 years from now. Click here to view the factor table. What is the amount Sandhill should invest now to earn this rate of return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, eg. 25.25.) Sandhill Company should invest $
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
ABC Enterprise would like to evaluate/analyze a potential investment.. Given the following:Investment amount - 450,000 (2022)Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14%a. NPV for the perio 2023 through 2029;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.
A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.c) Which product should be chosen and why?d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.
Olive Company is considering a project that is estimated to cost $275,500 and provide annual net cash flows of $65,523 for the next five years. Required: What is the internal rate of return for this project? Note: Round your answer to 2 decimal places. Intermat Rate of Returi
1. The initial investment is $52,133 and the salvage value is $10,000. The project is expected to generate $25,087 net cash inflows and the annual net income is $5,072. State the annual rate of return in decimal form to two decimal places. (For example, if you calculate 16%, then state your answer as .16)
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments. For each alternative project, compute the (a) net present value and (b) profitability index. (Round your answers in part b to two decimal places.) If the company can only select one project, which should it choose?