7.5 pts Spring 2023 D Question 4 Home Announcements Strobel Company is considering a long-term investment project called A- Account 9. A-9 will require an investment of $224,548. It will have a useful life of Modules 7 years and no salvage value. Annual cash inflows would increase by Textbook $103,700, and annual cash outflows would increase by $72,950. Dashboard Discussions Compute the cash payback period. Courses Grades . Round answer to 1 decimal place such as 1.2. Syllabus Calendar BC Peer Tutoring Cash Payback Period: 7.3 Years 47 NetTutor Inbox Renegade Hub for Canvas Help! History Writing Center D Question 5 10 pts Studio ? Help Chiu Company accumulates the following data concerning a proposed capital investment: cash cost $610,600, net annual cash flows $123,878 and present value factor of cash inflows for 7 years is 5.206 (assuming the expected rate of return on this purchase is 8%). . Round net present value to 0 decimal place such as 20. . For any negative net present value, use either a negative sign preceding K the number as -30 or parentheses as (30).. Do NOT enter a dollar sign. For example, if you are typing $10,000 as Spring 2023 your answer, answer should be typed as 10,000 without any dollar sign. Home Announcements Determine the net present value, and indicate whether the investment Account Modules should be made. Textbook Dashboard Discussions Net Present Value: $ Courses Grades Syllabus Calendar BC Peer Tutoring Net investment be made. (Write 47 NetTutor either should or should not) Inbox Renegade Hub for Canvas Help! History Writing Center D Question 6 15 pts Studio ? Help Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $158,800 and have an estimated useful life of 6 years. It can be sold for $69,100 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $26,700. Its cost of capital is 10%. Present value factor of cash inflows for 6 years K is 4.355. Present value factor of cash inflow for salvage value at year 6 is0.564. Spring 2023 Home Calculate the net present value of this project to the company and Announcements determine whether the project is acceptable. Account Modules (Hint: For the present value of net cash flows, both net annual cash flows Textbook in current value and salvage value in current value should be added Dashboard Discussions together.) Courses Grades . Round net present value to 0 decimal place such as 20. Syllabus . For any negative net present value, use either a negative sign preceding the number as -30 or parentheses as (30). Calendar BC Peer Tutoring . Do NOT enter a dollar sign. For example, if you are typing $10,000 as 47 NetTutor your answer, answer should be typed as 10,000 without any dollar sign. Inbox Renegade Hub for Canvas Help! History Writing Center Net Present Value: $ Studio ? The project is (Write either acceptable or not Help acceptable.) D Question 7 22.5 pts KSpring 2023 Orange Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck. The new Home truck would cost $137,200. Because of the increased capacity, reduced Announcements maintenance costs, and increased fuel economy, the new truck is Account Modules expected to generate cost savings of $19,700. At the end of 8 years, the company will sell the truck for an estimated $42,600. Traditionally, the Textbook Dashboard company has used a rule of thumb that a proposal should not be Discussions accepted unless it has a payback period that is less than 50% of the asset's estimated useful life. John Doe, a new manager, has suggested Courses Grades that the company should not rely solely on the payback approach, but Syllabus should also employ the net present value method when evaluating new Calendar BC Peer Tutoring projects. The company's cost of capital is 8%. 47 NetTutor Inbox Renegade Hub for Present value factor of cash inflows for 8 years is 5.747. Present value Canvas Help! factor of cash inflow for salvage value at year 8 is 0.540. History Writing Center . Round payback period to 1 decimal place such as 1.2. . Round net present value to 0 decimal place such as 20. Studio . For any negative net present value, use either a negative sign preceding ? the number as -30 or parentheses as (30). Help . Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. (a) Compute the cash payback period and net present value of the proposed investment. K(a) Compute the cash payback period and net present value of the Spring 2023 proposed investment. Home Announcements Account Modules Cash Payback Period: years Textbook Dashboard Net Present Value $ Discussions Grades (Hint: For the present value of net cash flows, both net annual cash Courses flows in current value and salvage value in current value should be Syllabus added together.) Calendar BC Peer Tutoring 47 NetTutor Inbox (b) Does the project meet the company's cash payback criteria? Renegade Hub for Canvas Help! Yes or No (Write yes or no) History Writing Center Studio (c) Does it meet the net present value criteria for acceptance? ? Yes or No (Write yes or no) Help D Question 8 22.5 pts KHome Ar r'our'cements Modules Textbook Discussions Grades Syllabus EC Peer Tutoring NetTutor Renegade Hub for Canvas Hel pl Writing Center Waco Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck. The new truck would cost $130,310. Because of the increased capacity, reduced maintenance costs. and increased fuel economy, the new truck is expected to generate cost savings of $19,700. At the end of 8 years, the company will sell the truck for an estimated $42,600. Traditionally. the company has used a rule of thumb that a proposal should not be accepted unless it has a payback period that is less than 50% ofthe asset's estimated useful life. John Doe. a new manager. has suggested that the company should not rely solely on the payback approach, but should also employ the net present value method when evaluating new projects. The company's cost of capital is 8%. Present value factor of cash inows for 8 years is 5.747. Present value factor of cash inow for salvage value at year 8 is 0.540. Round payback period to 1 decimal place such as 1.2. Round net present value to 0 decimal place such as 20. For any negative net present value, use either a negative sign preceding the number as -30 or parentheses as (30). Do NOT enter a dollar sign. For example, ifyou are typing $10,000 as your answer. answer should be typed as 10,000 without any dollar sign. (a) Compute the cash payback period and net present value ofthe proposed investment. Spring 2023 your answer, answer should be typed as 10,000 without any dollar sign. Home Announcements (a) Compute the cash payback period and net present value of the proposed investment. Account Modules Textbook Dashboard Discussions Cash Payback Period: years Courses Grades Net Present Value $ Syllabus Calendar BC Peer Tutoring (Hint: For the present value of net cash flows, both net annual cash 47 flows in current value and salvage value in current value should be NetTutor Inbox added together.) Renegade Hub for Canvas Help! History Writing Center (b) Does the project meet the company's cash payback criteria? Studio Yes or No (Write yes or no) ? Help (c) Does it meet the net present value criteria for acceptance? Yes or No (Write yes or no) K