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Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in

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Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000 The equipment will have an Initial cost of $400,000 and have a 5 year life. The salvage value of the equipment is estimated to be $75.000. if the hurdle rate is 15%, what is the approximate net present value ignore income taxes, Future Value of 1. Present Valve of , Buture Yolue Annuity of 51. Present Volue Annuity of 51.) (Une appropriate factor from the PV tables. Round your final answer to the nearest dollar amount) Mutiple Choice Potive $75,000 Poste $400,000 Negative $27490 Zere Dyfon Corp, in considering the purchase of a new piece of equipment. The cost saving to the equipment would result in an annual increase in cash flow of $100.000 The equipment will have an In tal cost of $400,000 and have a 5-year life. The salvage value of the equipment is estimated to be $75,000. If the hurdle rate is what is the internal rate of return?ture Value of $1. Present Value of 51. Future Value Annulty of St. Present Value Annuity of S1) (Use appropriate factor from the PV tables. Round your finalengwer to the nearest dollar amount.) Multiple Choice Bewind Between 1 and Brown and on Between onde Frank Inc. is trying to decide whether to lease or purchase a piece of equipment needed for the next ten years. The equipment would cost 549,000 to purchase and maintenance costs would be $5.300 per year har ten years. Frank estimatot it could sell the equipment for $27,000. Frankloned the equiomert, would pay a sot annual fee that would include maintenance costs Frank has determined after a net present value analysis that at its hurdle rate of it would be better off by $43.900 if it buys the equipment. What would the approximate annual cost bei Frank were to lease the equipment? Evture Value of St Present Value of $1. Future Value Annuity of S1, Present Value Annuity of Sl) (Use appropriate factor from the PV tables. Do not round intermediate calculations. Round your final answer to the nearest hundred.) Mimi Chance O SIR DOO O SHOCO 57250 O $10.000 Carmen, Inc. is considering three different independent investment opportunities. The present value of future cash flows, initial investment, net present value and profitability index for each of the projects are as follows Present value of future cash flows Initial investment Net present value Profitability Index Project A Project 8 Project C $300,000 $250,000 $275,000 150,000 105,000 140,000 $150,000 $145,000 $135,088 2.00 2.38 1.96 In what order should Carmen prioritize inwestment in the projects? Multiple Choice OBAC OU.CA ACB You invest $10,540 21 on ennully contact that ears torent, compounded only you to receive annual payments for the next ten years How much wil each of the payments ? PureViet Present Valueet 51. Future Value Annuity of 5). Presente Annuity of 13 e appropriate factor from the publes. Round your final wer to the nearest dollar amount) Mute Chee 395 SLSON $960 31054 You will need at lemt 55,000 in four years and your friend says she can ether on you $5,000 at once four years from now or she can deposit $1,450 in your savings account at the end of each year for the next four years. Your savings account earns interest, compounded annually. Which option would be worn more to you four years from now, and how much more? Buture Velet 1. stue of Sture Value Annuity of S1, Present Value Annuity of 51) Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount) the cross we bewow $734 more on the 1.800 in town The 500 m oven witte won 8547 more van tre anni doposts O The 1.100 in four years wild one than the deposits The men cuposts will be war $542 motan the $5.800 in four years

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