1...Passero company has a minimum required rate of return of 10%. It is considering investing in a project which costs $135,500 and is expected to generate cash inflows of $41,000 at the end of each year for four (4) years. Attach an MS Excel document showing formulas for 1) the present value of the cash flows, 2) the net present value of this project and 3) the time it takes to get the cash pay back.

2...

A company is considering purchasing factory equipment which costs $480,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $225,000 and annual operating expenses exclusive of depreciation expense are expected to be $95,000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this project is

3...

The following information was taken from Indriks Companys cash budget for the month of July:

Beginning cash balance $150,000

Cash receipts 95,000

Cash disbursements 170,000

If the company has a policy of maintaining a minimum end of the month cash balance of $125,000, the amount the company would have to borrow is

4...A company has a minimum required rate of return of 9% and is considering investing in a project that costs $175,000 and is expected to generate cash inflows of $70,000 at the end of each year for three years. The net present value of this project is