Alderman Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $915,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows) (Click the icon to view the present value table) (Click the icon to view the present value annuity table.) Data table Click the icon to view the future value table.) (Click the icon to view the future value annuity table.) Read the requirements Year 1 $262.000 Year 2 $251,000 Requirement 1. Compute this project's NPV using Alderman Industries' 16% hurdle rate Should Alderman Industries invest in the equipment? Why or why not? Year 3 $228,000 Begin by computing the project's NPV (net present value) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net pres Year 4 $213,000 Year 5 Net present value $200.000 Year6 $173.000 Print Done Heln me solve this Video X Reference Reference Present Value of $1 Present Value of Annuity of S1 10% 0660 3% 0.971 0943 0.962 0952 0.943 0.890 0.926 191670 Periods Period Period 2 Period Period 4 Periods 10% 1294 16% 1896 0.990 0.950 0.971 0.362 0.952 0.943 925 0.909 0 893 0.877 0.862 0847 1970 1992 1913886859 1833837361699 1.605 11666 299428292723 57722 402 2329 2.2461 2.174 3.803 2.682356 365 320.0372914 2982.590 4329205 33.33 3274 20% 0.833 1.528 2. 106 2.589 Periods Period 1 Period 2 Period 3 Period 4 Period 5 196 2% 0.980 0.980 0.970 0.942 0.9611 0.924 0.951 0.906 0 893 0.769 0675 0.636 0 592 0.567 18% 20 0.862 0.7180E 0.641 0.609 0.51604 0.888 0837 05070 450 0.410 0370 0 Periodo Period Periods Period 6 0.942888 Period 7 Period 0.923 Period 9 Period 10905 0 820 0.733 0.703 0.357 0.306 0837 0.5920 500 0.266 0.225 0.361 0322 0.263 9/920 2558 Periodo 0.650 0527 0.350 287 Period 1368 228.760066295938535023 Period 11.890 0.804 Period 12 887 Period 13.0879 Dar 0.520 0397 0.195 0.168 0 208 0.182 SIR 0290 0.229 h= 00 05 SEO 595 BE Done Done 3.59 Reference x Reference Per 000 0.950 doo 0.863 VUJO Period 5 UE 09016 WOOD UTZ 0.822 0784 2009 0.747 0.681 0.621 0.567 2 TO 0.476 0.437 0.519 2.991 RPLITU 2902 SEURUST 22 198 ZUYU Period 5 4,853 4.713 2 580 4452 4329 4212 3.993 3.791 3.605 3.433 3.274 3.127 Period 6 5.795 5.601 5417 5.2425.0762917 262335521113.889 3.685 3.498 Period 7 6.728 6.472 6.230 6002 57 86 5 582 5 206 2.868 45644 288 4.039 3.812 Period 8 7.325 7020 67335463 62105747 5 335 4.958 4 639 4.344 4078 Period 9 8.566 8.1627.786 17235 73108 6802 6 247 5.759 5.328 9464.607 4 303 Period 10 9471 8.9838 530 8111 360 6.710 6.145 5.650 5.216 4833 4494 Period 11 10.368 9.787 9.250 8.760 8.306 7887 7139 6.295 5.9385.453 5029 4.656 Period 12 16 255 10 575 9.95 9.385 8.863 8 384 7536 6.814 6.194 5.660 5.197 4.793 Period 1312134 1348 10635 9.986 9.394 8.853 7.904 7.103 6.424 58425.342 4.910 Period 143.002 12.106 11 296 10.563 9.899 9.295 8.244 7 367 6.628 6.002 5.468 5.008 Period 1513.865 12.84911 938 11. 11810.3809712 8559 7 606 6.811 6.142 5.575 5.092 3.326 3.605 3.837 4.031 4.192 Period 6 0.942 01888 0.837 Period 7 01933 OLOT 0.813 Period 8 0.923 0.853 0.799 Period 9 0.914 0.897 01766 Period 10 0.905 0.820 0744 0,790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.630 0.564 0.665 0.583 0513 0.627 0.540 0.467 0.592 0.500 0.424 0.568 0.463 0.386 0507 0 456 0.452 0.400 0.404 0.351 0.361 0.308 0.322 0.270 0.410 | 0.370 0.354 0.314 0.305 0.266 0.263 0.225 0.227 0.19 4.327 4.439 4.533 4611 4.675 Period 110.896 Period 12 0.8871 Period 13 0.879 Period 14 0.870 Period 15 0.861 0 804 017818 0776 0.758 0.743 0.722 0 650 0.701 0.625 0.681 0.601 0.661 0.577 0.642 0 555 0.585 0.557 0530 0.505 0.481 0.527 0.497 0.469 0442 02417 0.429 0.350 0 287 0.237 0.195 0.397 0.319 0.257 0.208 0.168 0.368 0.290 0.229 0.182 0 145 0:340 0.263 0.205 0 160 0.125 0.315 0.239 O 183 0.140 0.108 0.162 0.137 0.116 0.099 0.094 PP @ Period 2018.046 16.351 14.877 13590 12.462 11470 9.818 8.514 7469 6.623 5.929 Period 25 22.023 19.523 17 413 15.622 14 092 12783 10.675 9.077 7.843 6.873 6.097 Period 30 25 808 22.396 19 600 17 22 15 372 13765 112589.427 8055 7003 6.177 Period 40 32.835 27 355 23.115 19.790 172159 15.046 11.925 9 779 8.222 7 105 6.233 5.353 5.467 5.517 5.548 4.870 4 948 4 979 4.997 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 400 672 0.673 0.610 0 552 0 452 0.554 0.4718 0.412 0 307 0.456 0.377 0312 0.975 0.295 0.233 0.308 0.231 0.208 0.142 0.097 0.265 0.149 0.104 0.073 0.073 0.051 0.037 046 0.0920 059 0.038 0.024 0.016 0.099 0.067 0 033 0.020 0.012 0.0070 0.046 0.022 0.011 0.005 0.003 0.001 o DO Done Print Done Reference 1 Requirements Future Value of Annuity of $1 156 mi 189 1.000 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2010 13.030 4.060 5. 101 1. Compute this project's NPV using Aldeman Industries' 16% hurdle rate Should the company invest in the equipment? Why or why not? 2. Alderman Industries could refurbish the equipment at the end of six years for $ 106 000. The refurbished equipment could be used one more year, providing $74,000 of net cash inflows in Year. In addition, the refurbished equipment would have a $53,000 residual value at the end of Year? Should Alderman Industries invest in the equipment and refurbish it alter six years? Why or why not2 (Hint In addition to your answer to Requirement discount the additional cash outilow and inflows back to the present value 2% 13% 1000 1.000 2020 2.000 3.060 3.091 4.224 134 5.2014 6.309 1496 1000 2.0401 3.122 2.050 6% 1.000 2060 2104 4375 5.637 8% 1.000 20080 3246 4.506 1246 1000 2.120 3.374 1000 2100 3310 4.641 6.105 16% 1.000 2.160 3.506 5.066 13 153 4310 5 526 20% 1000 2200 3-640 5.368 2.180 3.572 5.215 7. 154 15416 921 6.610 ET 9.930 1144 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.305 6 488136.633 6802 7214 7 434 7.6627892 202 3.923 10.089 8.286 3 583 8.992 2114 0.549 10.637 11.436 12 300 9369 9 755 10.159 10.583 11027 11491 11.49112.88 13.579 ZO 10.462 10050 11.464 12 006 12.578 13.18112487 15.93717 549 12.142 15.327 10.730 13.233 16.085 19.337 7.519 20.321 20.799 25.959 23:521 Period 11 Period 12 Period 13 lactat 12 5672169 12.800 13.486 74 207 14.972 16. 645 18.539 20.655 12.683131124 192 15.026 15 917 16.370 18.977 21 384 24 33 13.809 14.680 16.5 18.16.627 17.7.13 18.382 21 495 24.523 28.029 frit DR10S 23.045 27 271 32.089 27 ORE 25.733 30.850 36.786 AT 28.755 34931 42.219 Done 32.150 39 581 48 497 - 102 O10 Print Done Help me solve this Video Get more help BE TAUDET 10 I 4 VO 18000 BUG Period 5 DI 5.309 11 6.105 5.526 5.637 5.867 6.353 6.610 Period 6 Period 7 Period 8 Period Period 10 6.308 6.633 6.802 6.975 8. 115 8.394 8.923 10.089 8.583 9.549 9.897 10.637 | 11.43612 300 10.159 | 10.583 | 11.027 1 11.491 | 12.488 13.579 | 14.776 10.462 10.950 11.464 12.006 | 12.578 13.181 14.487 | 15.937 | 17 549 10.730 13.233 8.977 11.414 14 240 17.519 21.321 12142 15. 327 12.916 16.499 19.337 25.959 25.733 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 | 13.486 | 14 207 114.972 16.845 | 18.531 | 20.656 72.683 13.412 14.192 15.026 15.917 | 16.870 18.977 | 21.384 24.133 13.809 14.680 15.819 | 16.827 | 17.713 | 18.882 21.495 24.523 | 28.029 74 947 15 974 17.088 | 19.292 19.599 | 21.015 | 24.215 27.975 | 32 393 16.097 17 29318.599 20.024 21 679 23.276 | 27.152 31.772 37 280 27.271 32.089 42.219 50.818 51.680 Period 20 Period 25 Period 39 Period 40 22019 24 297 | 26.870 29.778 | 33,066 | 36.786 | 45.762 57.275 72 052 28.243 32000 36.459 41.646 47 727 54 865 73.106 | 98.47 133 334 181.871 34.785 40.563 47 575 56.035 | 66 439 79.058 | 113 283 | 84 494241 333 358.787 790.943 1.181.882 48.886 0.402 75 401 95.026 | 120.800 154.762|259.057442 593 787.0941 342 0252.360.757 14.163.2137.343.85 Pont Done C Consider how Clare Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Stream Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Assume that Clare Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its ten-year life. Read the requier KX Data table Requirement 1. Compute the average annual net cash inflow from the expansion First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar) Assume that Clare Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge (all numbers assumed) CNVERT Average annual Average net cash inflow per day Number of ski days per year net cash inflow Number of additional skiers per day 121 Average number of days per year that weather conditions allow skiing at Clare Valley 156 Useful life of expansion (in years) Average cash spent by each skier per day S 236 Average variable cost of serving each skier per day .S 148 Cost of expansion $ 8.000.000 Discount rate 10% Requirements 1. 2 3 4 Compute the average annual net cash inflow from the expansion. Compute the average annual operating income from the expansion Compute the payback period Compute the ARR Help me solve this Vide Print Done Alderman Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $915,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows) (Click the icon to view the present value table) (Click the icon to view the present value annuity table.) Data table Click the icon to view the future value table.) (Click the icon to view the future value annuity table.) Read the requirements Year 1 $262.000 Year 2 $251,000 Requirement 1. Compute this project's NPV using Alderman Industries' 16% hurdle rate Should Alderman Industries invest in the equipment? Why or why not? Year 3 $228,000 Begin by computing the project's NPV (net present value) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net pres Year 4 $213,000 Year 5 Net present value $200.000 Year6 $173.000 Print Done Heln me solve this Video X Reference Reference Present Value of $1 Present Value of Annuity of S1 10% 0660 3% 0.971 0943 0.962 0952 0.943 0.890 0.926 191670 Periods Period Period 2 Period Period 4 Periods 10% 1294 16% 1896 0.990 0.950 0.971 0.362 0.952 0.943 925 0.909 0 893 0.877 0.862 0847 1970 1992 1913886859 1833837361699 1.605 11666 299428292723 57722 402 2329 2.2461 2.174 3.803 2.682356 365 320.0372914 2982.590 4329205 33.33 3274 20% 0.833 1.528 2. 106 2.589 Periods Period 1 Period 2 Period 3 Period 4 Period 5 196 2% 0.980 0.980 0.970 0.942 0.9611 0.924 0.951 0.906 0 893 0.769 0675 0.636 0 592 0.567 18% 20 0.862 0.7180E 0.641 0.609 0.51604 0.888 0837 05070 450 0.410 0370 0 Periodo Period Periods Period 6 0.942888 Period 7 Period 0.923 Period 9 Period 10905 0 820 0.733 0.703 0.357 0.306 0837 0.5920 500 0.266 0.225 0.361 0322 0.263 9/920 2558 Periodo 0.650 0527 0.350 287 Period 1368 228.760066295938535023 Period 11.890 0.804 Period 12 887 Period 13.0879 Dar 0.520 0397 0.195 0.168 0 208 0.182 SIR 0290 0.229 h= 00 05 SEO 595 BE Done Done 3.59 Reference x Reference Per 000 0.950 doo 0.863 VUJO Period 5 UE 09016 WOOD UTZ 0.822 0784 2009 0.747 0.681 0.621 0.567 2 TO 0.476 0.437 0.519 2.991 RPLITU 2902 SEURUST 22 198 ZUYU Period 5 4,853 4.713 2 580 4452 4329 4212 3.993 3.791 3.605 3.433 3.274 3.127 Period 6 5.795 5.601 5417 5.2425.0762917 262335521113.889 3.685 3.498 Period 7 6.728 6.472 6.230 6002 57 86 5 582 5 206 2.868 45644 288 4.039 3.812 Period 8 7.325 7020 67335463 62105747 5 335 4.958 4 639 4.344 4078 Period 9 8.566 8.1627.786 17235 73108 6802 6 247 5.759 5.328 9464.607 4 303 Period 10 9471 8.9838 530 8111 360 6.710 6.145 5.650 5.216 4833 4494 Period 11 10.368 9.787 9.250 8.760 8.306 7887 7139 6.295 5.9385.453 5029 4.656 Period 12 16 255 10 575 9.95 9.385 8.863 8 384 7536 6.814 6.194 5.660 5.197 4.793 Period 1312134 1348 10635 9.986 9.394 8.853 7.904 7.103 6.424 58425.342 4.910 Period 143.002 12.106 11 296 10.563 9.899 9.295 8.244 7 367 6.628 6.002 5.468 5.008 Period 1513.865 12.84911 938 11. 11810.3809712 8559 7 606 6.811 6.142 5.575 5.092 3.326 3.605 3.837 4.031 4.192 Period 6 0.942 01888 0.837 Period 7 01933 OLOT 0.813 Period 8 0.923 0.853 0.799 Period 9 0.914 0.897 01766 Period 10 0.905 0.820 0744 0,790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.630 0.564 0.665 0.583 0513 0.627 0.540 0.467 0.592 0.500 0.424 0.568 0.463 0.386 0507 0 456 0.452 0.400 0.404 0.351 0.361 0.308 0.322 0.270 0.410 | 0.370 0.354 0.314 0.305 0.266 0.263 0.225 0.227 0.19 4.327 4.439 4.533 4611 4.675 Period 110.896 Period 12 0.8871 Period 13 0.879 Period 14 0.870 Period 15 0.861 0 804 017818 0776 0.758 0.743 0.722 0 650 0.701 0.625 0.681 0.601 0.661 0.577 0.642 0 555 0.585 0.557 0530 0.505 0.481 0.527 0.497 0.469 0442 02417 0.429 0.350 0 287 0.237 0.195 0.397 0.319 0.257 0.208 0.168 0.368 0.290 0.229 0.182 0 145 0:340 0.263 0.205 0 160 0.125 0.315 0.239 O 183 0.140 0.108 0.162 0.137 0.116 0.099 0.094 PP @ Period 2018.046 16.351 14.877 13590 12.462 11470 9.818 8.514 7469 6.623 5.929 Period 25 22.023 19.523 17 413 15.622 14 092 12783 10.675 9.077 7.843 6.873 6.097 Period 30 25 808 22.396 19 600 17 22 15 372 13765 112589.427 8055 7003 6.177 Period 40 32.835 27 355 23.115 19.790 172159 15.046 11.925 9 779 8.222 7 105 6.233 5.353 5.467 5.517 5.548 4.870 4 948 4 979 4.997 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 400 672 0.673 0.610 0 552 0 452 0.554 0.4718 0.412 0 307 0.456 0.377 0312 0.975 0.295 0.233 0.308 0.231 0.208 0.142 0.097 0.265 0.149 0.104 0.073 0.073 0.051 0.037 046 0.0920 059 0.038 0.024 0.016 0.099 0.067 0 033 0.020 0.012 0.0070 0.046 0.022 0.011 0.005 0.003 0.001 o DO Done Print Done Reference 1 Requirements Future Value of Annuity of $1 156 mi 189 1.000 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2010 13.030 4.060 5. 101 1. Compute this project's NPV using Aldeman Industries' 16% hurdle rate Should the company invest in the equipment? Why or why not? 2. Alderman Industries could refurbish the equipment at the end of six years for $ 106 000. The refurbished equipment could be used one more year, providing $74,000 of net cash inflows in Year. In addition, the refurbished equipment would have a $53,000 residual value at the end of Year? Should Alderman Industries invest in the equipment and refurbish it alter six years? Why or why not2 (Hint In addition to your answer to Requirement discount the additional cash outilow and inflows back to the present value 2% 13% 1000 1.000 2020 2.000 3.060 3.091 4.224 134 5.2014 6.309 1496 1000 2.0401 3.122 2.050 6% 1.000 2060 2104 4375 5.637 8% 1.000 20080 3246 4.506 1246 1000 2.120 3.374 1000 2100 3310 4.641 6.105 16% 1.000 2.160 3.506 5.066 13 153 4310 5 526 20% 1000 2200 3-640 5.368 2.180 3.572 5.215 7. 154 15416 921 6.610 ET 9.930 1144 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.305 6 488136.633 6802 7214 7 434 7.6627892 202 3.923 10.089 8.286 3 583 8.992 2114 0.549 10.637 11.436 12 300 9369 9 755 10.159 10.583 11027 11491 11.49112.88 13.579 ZO 10.462 10050 11.464 12 006 12.578 13.18112487 15.93717 549 12.142 15.327 10.730 13.233 16.085 19.337 7.519 20.321 20.799 25.959 23:521 Period 11 Period 12 Period 13 lactat 12 5672169 12.800 13.486 74 207 14.972 16. 645 18.539 20.655 12.683131124 192 15.026 15 917 16.370 18.977 21 384 24 33 13.809 14.680 16.5 18.16.627 17.7.13 18.382 21 495 24.523 28.029 frit DR10S 23.045 27 271 32.089 27 ORE 25.733 30.850 36.786 AT 28.755 34931 42.219 Done 32.150 39 581 48 497 - 102 O10 Print Done Help me solve this Video Get more help BE TAUDET 10 I 4 VO 18000 BUG Period 5 DI 5.309 11 6.105 5.526 5.637 5.867 6.353 6.610 Period 6 Period 7 Period 8 Period Period 10 6.308 6.633 6.802 6.975 8. 115 8.394 8.923 10.089 8.583 9.549 9.897 10.637 | 11.43612 300 10.159 | 10.583 | 11.027 1 11.491 | 12.488 13.579 | 14.776 10.462 10.950 11.464 12.006 | 12.578 13.181 14.487 | 15.937 | 17 549 10.730 13.233 8.977 11.414 14 240 17.519 21.321 12142 15. 327 12.916 16.499 19.337 25.959 25.733 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 | 13.486 | 14 207 114.972 16.845 | 18.531 | 20.656 72.683 13.412 14.192 15.026 15.917 | 16.870 18.977 | 21.384 24.133 13.809 14.680 15.819 | 16.827 | 17.713 | 18.882 21.495 24.523 | 28.029 74 947 15 974 17.088 | 19.292 19.599 | 21.015 | 24.215 27.975 | 32 393 16.097 17 29318.599 20.024 21 679 23.276 | 27.152 31.772 37 280 27.271 32.089 42.219 50.818 51.680 Period 20 Period 25 Period 39 Period 40 22019 24 297 | 26.870 29.778 | 33,066 | 36.786 | 45.762 57.275 72 052 28.243 32000 36.459 41.646 47 727 54 865 73.106 | 98.47 133 334 181.871 34.785 40.563 47 575 56.035 | 66 439 79.058 | 113 283 | 84 494241 333 358.787 790.943 1.181.882 48.886 0.402 75 401 95.026 | 120.800 154.762|259.057442 593 787.0941 342 0252.360.757 14.163.2137.343.85 Pont Done C Consider how Clare Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Stream Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Assume that Clare Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its ten-year life. Read the requier KX Data table Requirement 1. Compute the average annual net cash inflow from the expansion First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar) Assume that Clare Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge (all numbers assumed) CNVERT Average annual Average net cash inflow per day Number of ski days per year net cash inflow Number of additional skiers per day 121 Average number of days per year that weather conditions allow skiing at Clare Valley 156 Useful life of expansion (in years) Average cash spent by each skier per day S 236 Average variable cost of serving each skier per day .S 148 Cost of expansion $ 8.000.000 Discount rate 10% Requirements 1. 2 3 4 Compute the average annual net cash inflow from the expansion. Compute the average annual operating income from the expansion Compute the payback period Compute the ARR Help me solve this Vide Print Done