Evaluate the success of the project. Assume a discount rate of 12%. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Original estimate net present value Revised estimate net present value The project a success. $ $
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- Quillen Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $250,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $44,200 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $263,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,700 per year. Click here to view PV table. Evaluate the success of the project. Assume a discount rate of 9%. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Original estimate net present value Revised estimate net present value %24 %24Whispering Winds Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $575,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $107,000 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $625,000, will have a useful life of 11 years, and will produce net annual cash flows of $94,000 per year. Evaluate the success of the project. The company’s discount rate is 10%. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Original estimate Revised estimate Net present value $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places The original project was select an option .Cullumber Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $223,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,600 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $226,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,100 per year. Click here to view PV table.Evaluate the success of the project. Assume a discount rate of 12%. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Original estimate net present value $enter a dollar amount Revised estimate net present value…
- Sunland Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $221,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,200 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $229,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,800 per year. Evaluate the success of the project. Assume a discount rate of 12%. What is the original estimate net present value? What is the revised estimate net present value. Is the project a success?Shado, Incorporated, is considering an investment of $442,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $281,300 and $88,400, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $62,000 in nominal terms at that time. The one-time net working capital investment of $18,500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 22 percent. What is the project’s total nominal cash flow from assets for each year? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Year 0$-460,500selected answer correctYear 1$167,182selected…Perkins, Inc., is considering an investment of $383,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $263,000 and $88,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $63,000 in nominal terms at that time. The one-time net working capital investment of $19,000 is required immediately and will be recovered at the end of the project. The tax rate is 23 percent. What is the project’s total nominal cash flow from assets for each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.)
- Shado, Incorporated, is considering an investment of $446, 000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $284, 900 and $89, 200, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $66,000 in nominal terms at that time. The one - time net working capital investment of $20, 500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 21 percent. What is the project's total nominal cash flow from assets for each year? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)Perkins, Inc., is considering an investment of $383,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $263,000 and $88,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $63,000 in nominal terms at that time. The one-time net working capital investment of $19,000 is required immediately and will be recovered at the end of the project. The tax rate is 23 percent. What is the project’s total nominal cash flow from assets for each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.) Cash Flow Year 0 $ -402,000 Year 1 Year 2 Year 3…Shado, Incorporated, is considering an investment of $451,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $289,400 and $90,200, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 5 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $71,000 in nominal terms at that time. The one-time net working capital investment of $23,000 is required immediately and will be recovered at the end of the project. The corporate tax rate is 21 percent. What is the project’s total nominal cash flow from assets for each year?
- LO, Inc., is considering an investment of $440,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $279,500 and $88,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $60,000 in nominal terms at that time. The one-time net working capital investment of $17,500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 25 percent. What is the project's total nominal cash flow from assets for each year? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash flowChemCo is considering installing a new system for the production of composite materials that costs $215,000. The expected life of the system is 11 years and the salvage value is computed using the declining balance method with a depreciation rate of 15%. The expected annual savings will be $33,000. The MARR is 10%. (a) Calculate the salvage value of the system. (b) Graph the Present Worth VS Changes in the Annual Savings by varying the annual savings by + 15% in steps of 5%. Use Excel. (c) Calculate the break even Annual Savings value.Sheridan Company is considering a capital investment of $183,600 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $10,557 and $51,000, respectively. Sheridan has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view the factor table. (a) Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52%.) Annual rate of return (b) years Net present value % Using the discounted cash flow technique, compute the net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer for present value…