answer all
Bernard, Inc., is considering a project that would have a ten-year life and would require a $1,000,000 investment in equipment. At the end of seven years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore income taxes.): Sales $2,000,000 Variable expenses 1.400,000 Contribution margin 600,000 Fixed out-of-pocket cash expenses 400,000 Depreciation 100,000 Net operating income $100,000 All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 15%. Compute the project's payback period, in years, (The following data is used in questions 51 and 52) Bernard, Inc., is considering a project that would have a ten-year life and would require a $1,000,000 investment in equipment. At the end of seven years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore income taxes.): Sales $2,000,000 Variable expenses 1.400,000 Contribution margin 600,000 Fixed out-of-pocket cash expenses 400,000 Depreciation 100.000 Net operating income $100,000 All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 15%. Compute the project's simple rate of return. 20% 10% 15% 5% The following data concern an investment project (Ignore income taxes.): Initial investment Annual net cash inflows Salvage value at the end of project Working capital required Life of the project Required rate of return $180,000 $42,000 $70,000 $20,000 5 years 12% The working capital will be released for use elsewhere at the conclusion of the project. Using the tables provided, compute the project's net present value