Answered step by step
Verified Expert Solution
Question
1 Approved Answer
begin{tabular}{ccccc} Year & begin{tabular}{c} Robotic Assembler Operating Income end{tabular} & begin{tabular}{c} Robotic Assembler Net Cash Flow end{tabular} & begin{tabular}{c} Warehouse Operating
\begin{tabular}{ccccc} Year & \begin{tabular}{c} Robotic Assembler \\ Operating Income \end{tabular} & \begin{tabular}{c} Robotic Assembler \\ Net Cash Flow \end{tabular} & \begin{tabular}{c} Warehouse \\ Operating \\ Income \end{tabular} & \begin{tabular}{c} Warehouse \\ Net Cash Flow \end{tabular} \\ \hline 1 & $48,300 & $158,000 & $101,000 & $253,000 \\ 2 & 48,300 & 158,000 & 77,000 & 213,000 \\ 3 & 48,300 & 158,000 & 39,000 & 150,000 \\ 4 & 48,300 & 158,000 & 17,000 & 103,000 \\ 5 & 48,300 & 158,000 & 7,500 & 71,000 \\ \cline { 2 - 5 } Total & $241,500 & $790,000 & $241,500 & $790,000 \\ \cline { 2 - 5 } & & & & \end{tabular} analysis. Present Value of $1 at Compound Interest \begin{tabular}{cccccc} \hline Year & 6% & 10% & 12% & 15% & 20% \\ \hline 1 & 0.943 & 0.909 & 0.893 & 0.870 & 0.833 \\ 2 & 0.890 & 0.826 & 0.797 & 0.756 & 0.694 \\ 3 & 0.840 & 0.751 & 0.712 & 0.658 & 0.579 \\ 4 & 0.792 & 0.683 & 0.636 & 0.572 & 0.482 \\ 5 & 0.747 & 0.621 & 0.567 & 0.497 & 0.402 \\ 6 & 0.705 & 0.564 & 0.507 & 0.432 & 0.335 \\ 7 & 0.665 & 0.513 & 0.452 & 0.376 & 0.279 \\ 8 & 0.627 & 0.467 & 0.404 & 0.327 & 0.233 \\ 9 & 0.592 & 0.424 & 0.361 & 0.284 & 0.194 \\ 10 & 0.558 & 0.386 & 0.322 & 0.247 & 0.162 \end{tabular} Required: Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Net present value method, present value index, and analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. 3. The does the minimum rate of return standard. X has the largest present value index. Although , as revealed by the present value indexes. The present value index for the has the largest net present value, it returns less present value per dollar invested than is less than 1 , indicating that it does not meet the
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started