All required parts please and thank you, its all one question.
Heame Company has a number of potential capital investments, Becouse these projects vary in nature, initial investment, and time horizon, management is finding it dimeult to compare them. Assume straight line depreciation method is used. (Future Valie of $3. Present Value of 51. Euture Valte Annuty of 31. Eresent Value Annuity of \$1) Note: Use appropriate factor(3) from the tables provided. Project 1: Retooling Manufacturing Faclity This project would require an initial investment of $4,970,000. It would generate $973,000 in additional net cash now each year. The new mochinery has a useful life of eight years and a salvage value of $1,920.000 Project 2: Purchase Patent for New Product The patent would cost $3,820,000, which would be fully amortized over five years, Production of this product would generate $706,700 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Dellvery Trucks Hearne could purchase 25 new delivery trucks at a cost of $160,600 each. The fleet would have o useful life of to years, and each truck would have a saivage value of $6,200. Purchasing the fleet would allow Hearne to expand its customer territory, resulting in $239.000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each projects payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. $706,700 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Dellvery Trucks Hearne could purchase 25 new delivery trucks ot a cost of $160,600 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $6,200. Purchasing the fleet would allow Hearne to expand its customer territory, resulting in $239,000 of aditional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Heame. Complete this question by entering your answers in the tabs below. Determine each project's occounting rate of retum. Note: Round your answers to 2 decimal places. $706,700 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Dellvery Trucks Hearne could purchase 25 new delivery trucks at a cost of $160,600 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of \$6.200. Purchasing the fieet would allow Hearne to expand its customer territory, resulting in $239,000 of additional net income per yeat. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using o discount rate of to percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine each project's payback period. Note: Round your answers to 2 decimal places. Project 3: Purchase a New Fleet of Dellvery Trucks Hearne could purchase 25 new dellvery trucks at a cost of $160,600 each. The fleet would have a useful life of to years, and each truck would have a satvage value of $6,200. Purchasing the fleet would allow Heame to expand its customer territory, resulting in $239.000 of additional net income per yeat. Required: 1. Determine each project's accounting rate of return. 2. Determine each projects payback period. 3. Using a discount fate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Heame. Complete this question by entering your answers in the tabs below. Using a discount rate of 10 percent, calculate the net present value of each project, Note: Negative amount should be indicated by a minis sigh. Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places. $706,700 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Dellvery Trucks Hearne could purchase 25 new delivery trucks at a cost of $160.600 each. The fleet would have a useful life of to years, and each truck would have a salvoge value of $6,200. Purchasing the fleet would allow Hearne to expand its customer ferritory, resuiting in $239.000 of additional net income per yeak. Required: 1. Determine each project's accounting rate of retum. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine the profitability index of each project and prioritize the projects for Hearne. Notes Round your intermediate calculations to 2 decimal places. Round your hinal answers to 4 decimal places
