Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

badly need the answers here ASAP Cato Springs Chemicals International, a batch chemical processing company, is considering acquiring new technology in order to enter a

badly need the answers here ASAP

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Cato Springs Chemicals International, a batch chemical processing company, is considering acquiring new technology in order to enter a new specialty chemicals market. Three suppliers (A, B, and C) of specially designed centrifuges and associated equipment are under consideration. Depending on which supplier is chosen, slightly different markets will be pursued. The forecasts of net cash flows over a 10-year planning horizon for the three alternatives are given below. EOY CF(A) CF(B) CF(C) 0 -$7,785,000 $8,895,000 $10,435,000 1 $1,337,500 $1,360,200 $1,725,500 2 $1,745,500 $2,166,700 $2,605,700 3 $2,052,800 $2,360,300 $2,807,500 4 $2,395,700 $2,599,000 $3.027,500 5 $2,500,500 $2,785,000 $3.175,000 6 $2,625,600 $3,118,500 $3,400,300 7 $2,785,000 $3,295,900 $3,715,800 8 $3,055,300 $3,368,700 $3,900,000 9 $3,907,500 $4.810,800 $4,402.500 10 $5,335,000 $7,995,000 $8,900,000 Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 10%. should be calculated first: ERR %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 15%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 20%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Cato Springs Chemicals International, a batch chemical processing company, is considering acquiring new technology in order to enter a new specialty chemicals market. Three suppliers (A, B, and C) of specially designed centrifuges and associated equipment are under consideration. Depending on which supplier is chosen, slightly different markets will be pursued. The forecasts of net cash flows over a 10-year planning horizon for the three alternatives are given below. EOY CF(A) CF(B) CF(C) 0 -$7,785,000 $8,895,000 $10,435,000 1 $1,337,500 $1,360,200 $1,725,500 2 $1,745,500 $2,166,700 $2,605,700 3 $2,052,800 $2,360,300 $2,807,500 4 $2,395,700 $2,599,000 $3.027,500 5 $2,500,500 $2,785,000 $3.175,000 6 $2,625,600 $3,118,500 $3,400,300 7 $2,785,000 $3,295,900 $3,715,800 8 $3,055,300 $3,368,700 $3,900,000 9 $3,907,500 $4.810,800 $4,402.500 10 $5,335,000 $7,995,000 $8,900,000 Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 10%. should be calculated first: ERR %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 15%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 20%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: William K. Carter

14th edition

759338094, 978-0759338098

Students also viewed these Accounting questions