2.

2 Determine each project's payback perlod. 3. Compute each project's accounting rate of return. Required information [The following information applles to the questions alisplayed below.] Most Company has an opportunity to Invest in one of two new projects. Project Y requires a $340,000 Investment for new machinery with a four-year life and no salvage value. Project Z requires a $340,000 Investment for new machinery with a three-year life and no salvage value. The two projects yleld the following predicted annual results. The company uses straight-IIne depreclation, and cash flows occur evenly throughout each year. (PV of \$1. FV of \$1. PVA of \$1, and FVA of \$1) (Use approprlate factor(s) from the tables provided.) Required: 1. Compute each project's annual expected net cash flows. Compute each project's profitability index. If the company can choose only one project, which should it choose? \begin{tabular}{|l|l|l|l|l|c|} \hline Choose Numerator: & 1 & Choose Denominator: & = & Profitability Index \\ \hline & & 1 & & = & Profitability index \\ \hline Project X1 & & & & \\ \hline Project X2 & & & \\ \hline If the company can choose only one project, which should it choose? \\ \hline \end{tabular} 4. Determine each orolect's net present value usina 6% as the discount rate. Assume that cash flows occur at each yeare Following is Information on two alternative Investments belng considered by Tiger Co. The company requires a 5% return from Its investments. (PV of \$1, PV of \$1. PVA of \$1, and (Use approprlate factor(s) from the tables provided.) a. Compute each project's net present value. b. Compute each project's profitability Index. If the company can choose only one project, which should It choose? Complete this question by entering your answers in the tabs below. Compute each project's net present value. (Round your final answers to the nearest dollar.) 2 Determine each project's payback perlod. 3. Compute each project's accounting rate of return. Required information [The following information applles to the questions alisplayed below.] Most Company has an opportunity to Invest in one of two new projects. Project Y requires a $340,000 Investment for new machinery with a four-year life and no salvage value. Project Z requires a $340,000 Investment for new machinery with a three-year life and no salvage value. The two projects yleld the following predicted annual results. The company uses straight-IIne depreclation, and cash flows occur evenly throughout each year. (PV of \$1. FV of \$1. PVA of \$1, and FVA of \$1) (Use approprlate factor(s) from the tables provided.) Required: 1. Compute each project's annual expected net cash flows. Compute each project's profitability index. If the company can choose only one project, which should it choose? \begin{tabular}{|l|l|l|l|l|c|} \hline Choose Numerator: & 1 & Choose Denominator: & = & Profitability Index \\ \hline & & 1 & & = & Profitability index \\ \hline Project X1 & & & & \\ \hline Project X2 & & & \\ \hline If the company can choose only one project, which should it choose? \\ \hline \end{tabular} 4. Determine each orolect's net present value usina 6% as the discount rate. Assume that cash flows occur at each yeare Following is Information on two alternative Investments belng considered by Tiger Co. The company requires a 5% return from Its investments. (PV of \$1, PV of \$1. PVA of \$1, and (Use approprlate factor(s) from the tables provided.) a. Compute each project's net present value. b. Compute each project's profitability Index. If the company can choose only one project, which should It choose? Complete this question by entering your answers in the tabs below. Compute each project's net present value. (Round your final answers to the nearest dollar.)