Reference no: EM132425834
Questions -
Q1. Heedy Inc. is considering a capital investment proposal that costs $460,000 and has an estimated life of four years, and no residual value. The estimated net cash flows are as follows:
|
Year
|
Net Cash Flow
|
|
1
|
$195,000
|
|
2
|
160,000
|
|
3
|
120,000
|
|
4
|
80,000
|
The minimum desired rate of return for net present value analysis is 10%. The present value of $1 at compound interest rates of 10% for 1, 2, 3, and 4 years is 0.909, 0.826, 0.751, and 0.683, respectively. Determine the net present value. Enter negative values as negative numbers.
Q2. A $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows:
|
Year
|
Net Cash Flow
|
|
1
|
$150,000
|
|
2
|
130,000
|
|
3
|
104,000
|
|
4
|
90,000
|
The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value.
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Determine the cash payback period for each proposal
: Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, Determine the cash payback period for each proposal
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Apply appropriate project management tools and techniques
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What is Micro Advantage weighted-average cost of capital
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Determine the necessary average annual income
: Determine the necessary average annual income (using straight-line depreciation) that must be achieved on this project for it to be acceptable to Harris Co
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Determine the net present value
: The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value
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Difference between modifiers used for hospital outpatients
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Calculate the log returns and the excess return
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How are the myths of cybele and attis
: How are the myths of Cybele and Attis similar to that of Demeter and Persephone?
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Determine the average rate of return on investment
: The company's minimum desired rate of return is 12%. Determine the average rate of return on investment, giving effect to depreciation on the investment
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