Unit VIII question 14 part A 222Whispering Winds Manufacturing Company is considering three new projects, each requiring an equipment investment of $27,100.Each project will last for 3 years and produce the following cash flows.BBA.$8,700$11,700$12,7001.2.10,70011,70016,70011,70010,7003.Total%2436,100$35,100$35,100The salvage value for each of the projects is zero. Whispering Winds uses straight-line depreciation. Whispering Winds will not acceptany project with a payback period over 2.2 years. Whispering Winds's minimum required rate of return is 12%.TABLE 3 Present Value of LPeriods92503,91743802869245660606000680.87344796857343.4.21178611986384657526209256743746227049659627375949918403889099690702591819FF16906922842606160.5430350025DIF TU.3521867556190942241%3D12649583875331728.42883504928748214940900571895546884L696E0.4440111/.3261835554318632575199687899550507२P८/S:0.3878234046.263331.5552612289O0607"16E45811LEEIS39365371363503421763£94155298,1376839573TROS0IS0E0.25842474640.27615.1635131180T191.17843-1240320.రారTABLE 4 Present Value of an Annuity of IPayments96154952380.9345892593917431.80802 1.78326 1.7591I 1.73554 1.71252869576060660962723252673013.545953.46511 3.38721 331213 3.23972 3.16986 3.10245062.62432 2.57710 2.53130 2.48685 2 44371 2.401s3 2.283233.03735 2854983.60590 360478 3.3521l64.622RR 4.48502 4.35526 4.23054 411141 3784484.451825.242146732747.43533646321 20079 5.97130 5.74664 5.53482 532403 5.14612 496764 4487326.51523 624689 5.99525, 5.75902 553705 532825 4.771585.65022 5.018777.0235841766 61445711twEwEWSてと8.35765 7.90378 7.48650 7.10336 6.74987 s-42355 5.583159.385071210.563129.898648.74547 8.24424 7.78G15 7.366696.981878.559488.060692806 09090.81086 5.84737 TABLE 4 Present Value of an Annuity of I(1)Payments159174360006173554 171252 16900592593060061.625712.48685 244371 2.40183 2.283233.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.854984.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.352165.24214 5.07569 491732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.784485.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.160425.14612 4.96764 4.487326.51523 6.24689 5.99525 5.75902 553705 532825 4.771585.88923 565022 5.01A772.6098262432 2.57710 2531300664.45182 4.329483.AA9655.6.6.732746463216.20979 5.071 30 5.74664 553482 5.334037.72173 7.3009 7.02458 6.71008 6.41766 6.14457A.R6325 A383849.39357 8.852689.898647.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.233717.94269 7.5608 7.16073 6A1369 6 49226 6.19437 5420628.35765 7.900378 7.48690 7.10336 674987 6.42355 5583158.74547 8.24424 7.78615 7.36669 6.98187 662817 5.7244R98019 067.60608 7.19087 6.81086 5.847379.385071213.1410.563121.11.65230 10 83777 10.1059012.165677.37916 697399 5.95424854363 8.02155 754879711963 6.0471610.05909 9.37180 875563 A.20141 7.70162 724967 6,127979,44665 8.85137 A31256 7.823719.76322 9.12164I1.68959 10.8276013.1339413.59033 12.4622110.59401 9.81815 912855 851356 7.96333 7.6944 6.2593126691 1120.(a)Compute each project's payback period. (Round answers to 2 decirmal places, eg. 52.75.)AABBDつPayback periodyearsyearsIndicating the most desirable project and the least desirable project using this method.Most desirableLeast desirablee Textbook and MediaAttempts: 0 of 3 usedSubmit Answer(b)The parts of this question must be completed in order. This part will be available when you complete the part above.

Calculation of Payback Period Project AA Year Cashflows Cumulative Cashflows Payback period 0…

Answered: AA Payback period years Indicating the…

AA Payback period years Indicating the most desirable project and the least desirable project Most desirable Least desirable eTextbook and Media

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EA: Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and...

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