Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

16,17,18,19 plz i need help Question 16 8 pts Staple Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project

16,17,18,19 plz i need help
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 16 8 pts Staple Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Beans Initial investment $ 400,000 Annual net income $ 20,000 Net annual cash flow S100.000 Estimated useful life 5 years Salvage value -0- Project Rice $ 600.000 $ 42,000 S 142.000 6 years -0 The company requires a 10% rate of return on all new investments Periods 5 6 Present Value of an Annuity of 99 3.890 3.791 3.696 4.486 4.355 4231 129 3.605 The cash payback period for Project Beans is 20 years. 10 years 5 years 4 years. Staple Company is considering two capital investment proposals. Estimates regarding each project are provided below: 8pts Project Beans Initial investment S 400.000 Annual net income $ 20.000 Net annual cash flow S100.000 Estimated useful life 5 years Salvage value -0- Project Rice S 600.000 S 42.000 S 142.000 6 years -0- The company requires a 10% rate of return on all new investments Periods 5 Present Value of an Annuity of 99 10% 3.890 3.791 3.696 4.486 4.355 4.231 129 3.605 4.111 6 The net present value for Project Rice is $618.410. $182,912. $100,000 $18.410. Staple Company is considering two capital investment proposals. Estimates regarding each project are provided below: 8 pts Project Beans Initial investment $ 400.000 Annual net income S 20.000 Net annual cash flow S100.000 Estimated useful life Salvage value -0- Project Rice S 600.000 $ 42.000 $ 142.000 6 years -0- 5 years The company requires a 10% rate of return on all new investments Periods 5 Present Value of an Annuity of 9% 10% 3.890 3.791 3.696 4.486 4.355 4.231 126 3.605 The internal rate of return for Project Rice is approximately 10% 11% 12% 9% Question 19 8 pts Staple Company is considering two capital investment proposals. Estimates regarding cach project are provided below: Proiect Beans Initial investment $ 400.000 Annual net income $ 20,000 Net annual cash flow S100.000 Estimated useful life 5 years Salvage value -0- Project Rice S 600.000 $ 42.000 S 142.000 6 years -0- The company requires a 10% rate of return on all new investments Periods 5 6 Present Value of an Annuity of 99 10% 118 3.890 3.791 3.696 4486 4.355 4.231 128 3.605 The annual rate of return for Project Beans is 5% 10% 25% SOX

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

Auditing Jane Doe

Authors: Michelle Cornish

1st Edition

1777418828, 978-1777418823

More Books

Students also viewed these Accounting questions