Brief Exercise G-9 Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What is the present value of $32,900 due 13 periods from now, discounted at 12 % 7 (Round answer to 2 decimal places, e.g. 25.25.) Present value (b) What is the present value of $32,900 to be received at the end of each of 10 periods. discounted at 6%7 ( Round answer to 2 decimal places, eg. 25.25.) Present value Brief Exercise G-10 Cullumber Company is considering an investment that will return a lump sum of $942,200, 8 years from now. click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Cullumber Company pay for this investment to earn an 7% return? (Round answer to 2 decimal places, e.g. 25 Lincoln Company should pay Brief Exercise G-12 Wildhorse Co. is considering investing in an annuity contract that will return $31,260 annually at the end of each year for 14 years. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Wildhorse Co. pay for this investment if it earns an 6% return? (Round answer to 2 decimal places, e.g. 25.25.) Wildhorse Co. should pay Exercise 24-2 Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $22.440. Each project will last for 3 years and preduce the following net annual cash flows. BB Year AA CC $7.140 $10.200 $13.260 1 9.180 10,200 12.240 12,240 10,200 11.220 $36.720 Total $28.560 $30,600 The equipment's salvage value is zero, and Doug uses straight-ine depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug's required rate of return is 12 % . click here to vi (a) Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) AA years BB years CC years Which is the most desirable project? The most desirable project based on payback period is Which is the most desirable project? The most desirable project based on payback period is Which is the least desirable project? The least desirable project based on payback period is () Compute the net present value of each project. (Enter negative amounts using either a negative sign prece For calculation purposes, use 5 decimal places as displayed in the factor table provided.) AA Which is the most desirable project based on net present value? The most desirable project based on net present value is Which is the least desirable project based on net present value? The least desirable project based on net present value is BACK CALCULATOR PULL SCREN PRINTER YERsON Exercise 24 4 BAK Corp. is considering purchasing one of two new diagnostic machines. Ether machine would make it possible for the company to bid on jobs that it currently isn't equipped to de. Estimates regarding each machine are provideed bel Machine A Machine B $187,000 Original cost $76,600 Estimated lide 8 years 8 years Savage value Estimated annual cash inflows Estimated annual cash outfo $40,400 $20.400 $5.190 s10.130 click here to viex PV table Calculate the net present vale and profitability index of each machine. Assume a 9% discount rate. ( the net presevit value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45), Re answer for present velue to 0 decimal places eg. 125 and profitabiity index to 2 decimal pleces, eg. 10.5o For calculation purposes use 5 decimal places as displayed in the factor table provided.) Machine Machine A Net present viaue Proftsblity inde $76,600 $187,000 Original cost Estimated life 8 years 8 years Salvage value 0 $20,400 Estimated annual cash inflows $40,400 $10,130 $5,190 Estimated annual cash outflows Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use es answer for present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes Machine B Machine A Net present value Profitability index Which machine should be purchased? should be purchased
