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answer part 1-4 will thumbs up, show formulas/ calculations Required information Problem 26-2A (Algo) Payback period, accounting rate of return, net present value, and net
answer part 1-4 will thumbs up, show formulas/ calculations
Required information Problem 26-2A (Algo) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 [The following information applies to the questions displayed below] Project Y requires a $313,500 investment for new machinery with a six-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year (PV of \$1. FV of \$1. PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. Problem 26-2A (Algo) Part 1 Required: 1. Compute Project Y's annual net cash flows. Required: 1. Compute Project Y's annual net cash flows. 2. Determine Project Y's payback period. Problem 26-2A (Algo) Part 3 3. Compute Project Y 's accounting rate of return Note: Use appropriate factor(s) from the tables provided. Problem 26-2A (Algo) Part 4 4. Determine Project Y 's net present value using 7% as the discount rate: Note: Do not round intermediate calculations. Round your present value foctor to 4 decimals and final answers to the nearest whole dollar. Rowan Company is considering two alternative investment projects. Each requires a $259.000 initial investment. Project A is expected to generate net cash flows of $69,000 per year over the next six years. Project B is expected to generate net cash flows of $59,000 per year over the next seven years. Management requires an 9% rate of return on its investments. (PV of $1. FV of $1. PVA of $1, and EVA of \$1) Note: Use oppropriate foctor(s) from the tables provided. Required: 1. Compute each project's net present value. 2. Compute each project's profitability index. 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. Compute each project's net present value. Note: Do not round intermediate calculations. Round your present value factor to 4 decimals and your final answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Compute each project's net present value. Note: Do not round intermediate calculations. Round your present value factor to 4 decimals and your final answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Compute each project's profitability index. Note: Do not round intermediate values, Enter your answers rounded to the nearest whole dollar. 1. Compute each project's net present value. 2. Compute each project's profitability index 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. If the company can choose only one project, which should it choose, based on profitability index Step by Step Solution
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