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Can You please help me with question c. and question e3. Answer each independent question. {a} through {e}, below. a. Project A costs $5,500 and
Can You please help me with question c. and question e3.
Answer each independent question. {a} through {e}, below. a. Project A costs $5,500 and will generate annual after-tax net cash inflows of$1,850 for 5 years. What is the payback period forthis investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $5,500 and will generate aftertax cash inows of$550 in year 1, $1,250 in year 2, $2100 in year 3, $2,550 in year 4, and $2,100 in year 5. What is the payback period {in years) forthis investment assuming that the cash inflows occur evenly throughout the year? [Round your answer to 2 decimal places.) c. Project C costs $5,500 and will generate net cash inflows of $2,500 before taxes for 5 years. The firm uses straig htline depreciation with no salvage value and is subject to a 20%tax rate. What is the payback period underthe assumption that all cash inows occur evenly throughout the year? [Round your answer to 2 decimal places.) d. Project D costs $5,500 and will generate sales of$4,100 each year for 5 years. The cash expenditures will be $1,550 per year. The firm uses straightline depreciation with an estimated salvage value of $550 and has a tax rate of 20%. (1) What is the accounting (book) rate of return based on the original investment? (Round your answer to 2 decimal places.) (2} What is the book rate of return based on the average book value? {Round your answer to Zdecimal places.) Use the builtin NPV function in Excel to calculate the amounts for projects a through d. (Round your answers to the nearest whole dollar amount.) e1. What is the NPV of project A? Assume that the firm requires a minimum aftertax return of?% on investment. e2. What is the NPV of project B? Assume that the rm requires a minimum aftertax return of ?% on investment. e3. What is the NPV ofproject C? Assume that the firm requires a minimum after-tax return of?% on investment. e4. What is the NPV of project D? Assume thatthe firm requires a minimum aftertax return of?% on investment. 0 Answer is complete but not entirely correct. a. Payback period 2.9? a years b. Payback period 3.63 a years c. Payback period 2.00 a years d1. Book rate of return 22.69 a 91': d2. Book rate of return 41.28 a 2'11\": 31. NW of ProjectA $ 2,035 0 e2. NW of Project a 3; 1,2630 e3. NW of Project :3 $ 4,?50 6 e4. NW of Project D at 4.0630Step by Step Solution
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