Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15C eBook Net Present Value Method and Internal Rate of Raum Method Wisconsin Healthcare Corp. is proposing to spend $154,008 on a project that has

15C
image text in transcribed
image text in transcribed
eBook Net Present Value Method and Internal Rate of Raum Method Wisconsin Healthcare Corp. is proposing to spend $154,008 on a project that has estimated net cash flow of $31,000 for each of the next years Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3326 7 5.582 4.865 4.564 6.160 3.605 8 6.210 5.335 4.965 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 2 3 4 5 a. Compute the net present value, using a rate of return of 154. Use the table of present values of an annuity of si presented above. It required, use the minus sign to indicate a negative net present value. Present value or annual net cash flows Autor invested 4.917 4355 1.212 3.791 3605 3.353 2.991 6 3.785 3.326 2 5.582 4.86 4.564 4.160 3.605 8 6.210 5.335 4.968 4487 3.8? 9 6.802 5.255 5.320 4.772 4,031 10 7.360 5.650 5.019 4.192 a. Compute the net present vite nga te of return of 15. Use the table of present out of any of sted above. If required, use the minus sign to indicate a negative net present value Present value of annual shows Amount to be invested Net bresent ya b. Based on the analysis ir pared in part tax is the rate of retam (1) more than 15 aasta 15 Determine the fretum y comunale contratto in your calculation round the net present value factor to three decimal Duck My WeCheck

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions