C New Tab M Gmail Maps News Translate YouTube h Hulu | Watch N M myMU Account 6 HubSpot Academy a Prime Video - Am... Chapter #14 - Homework i Saved Help Save & Exit Su Check my wo The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1.25 1 $ 76, 000 $ 5, 000 2 $ 3, 000 points $ 10, 000 3 $ 18, 000 4 $ 19 , 000 $ 22, 000 eBook $ 20, 000 $ 18, 000 Hint $ 16, 000 $ 15, 000 Print $ 15 , 000 References Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period 6.0 years Required 1 Required 2 > Mc Prev 1 of 4 Next > MacBook AirChapter #14 - Homework i Saved Help Save 2 The management of Kunkel Company is considering the purchase of a $28,000 machine that would reduce operating costs by $7,000 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's required rate of return is 13%. 1.25 Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. points Required: Skipped 1. Determine the net present value of the investment in the machine. 2. What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? eBook Complete this question by entering your answers in the tabs below. Hint Print Required 1 Required 2 References Determine the net present value of the investment in the machine. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount. Use the appropriate table to determine the discount factor(s).) Net present value Required 1 Required 2 > Mc graw MacBook Airt Academy a Prime Video - Am.. Chapter #14 - Homework i Saved Help Save 2 The management of Kunkel Company is considering the purchase of a $28,000 machine that would reduce operating costs by $7,000 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's required rate of return is 13%. 1.25 Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using table. points Required: Skipped 1. Determine the net present value of the investment in the machine. 2. What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? eBook Complete this question by entering your answers in the tabs below. Hint Print Required 1 Required 2 References What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? (Any cash outflows should be indicated by a minus sign.) Total difference in undiscounted cash inflows and outflows Mc Graw HillChapter #14 - Homework Saved Help Save 3 Information on four investment proposals is given below: Investment Proposal 1.25 A B C D points Investment required $ (390, 000) $ (30, 000) $ (40, 000) $ (600, 000) Present value of cash inflows 551 , 000 41, 000 64 , 100 800, 000 Net present value $ 161, 000 Skipped $ 11,000 $ 24, 100 $ 200,000 Life of the project 5 years years 6 years 6 years Required: eBook 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Hint Print Investment Profitability Rank References Proposal Index Preference A B C D Mc Graw HillmyMU Account o HubSpot Academy a Prime Video - Am. Chapter #14 - Homework i Saved Help Save 4 The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $60,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $20,000. The new machine 1.25 would have a useful life of 10 years with no salvage value. points Required: Skipped 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? eBook 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Hint Print 1. Depreciation expense 2. Incremental net operating income References 3. Initial investment 4. Simple rate of return % Mc Gra MacBook Air