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attached is the questions 1.) Use the following table, Present Value of an Annuity of 1 Periods 8% 9% 10% 1 2 3 .926 1.783
attached is the questions
1.) Use the following table, Present Value of an Annuity of 1 Periods 8% 9% 10% 1 2 3 .926 1.783 2.577 .917 1.759 2.531 .909 1.736 2.487 A company has a minimum required rate of return of 10%. It is considering investing in a project that requires an investment of $420,000 and is expected to generate cash inflows of $180,000 at the end of each year for three years. The present value of future cash inflows for this project is..... 2.) Use the following table, Present Value of an Annuity of 1 Periods 8% 9% 10% 1 2 3 .926 1.783 2.577 .917 1.759 2.531 .909 1.736 2.487 A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $455,580 and is expected to generate cash inflows of $180,000 each year for three years. The approximate internal rate of return on this project is..... 3.) Use the following table, Present Value of an Annuity of 1 Periods 8% 9% 1 2 3 .926 1.783 2.577 .917 1.759 2.531 10% .909 1.736 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $840,000 and is expected to generate cash inflows of $336,000 at the end of each year for three years. The net present value of this project is..... 4.) Taffy Industries is considering purchasing equipment costing $60,000 with a 6year useful life. The equipment will provide cost savings of $14,600 and will be depreciated straightline over its useful life with no salvage value. Taffy Industries requires a 10% rate of return. Present Value of an Annuity of 1 Periods 8% 9% 6 4.623 4.486 10% 11% 12% 13% 4.355 4.231 4.111 3.784 What is the approximate internal rate of return for this investment? 5.) Debra Manufacturing has identified that the cost of a new computer will be $120,000, but with the use of the new computer, net income will increase by $10,000 a year. If depreciation expense is $6,000 a year, the cash payback period isStep by Step Solution
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