Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please help with homework I am lost The management of Revco Products is exploring four different investment opportunities. Information on the four projects

can you please help with homework I am lost image text in transcribed
image text in transcribed
The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Numbe $(450,000) $(540,000) $(390,000) ( 0,000) Westent required Present value of cash inflorata discount rate Net present value Life of the project Internal rate of return $ 54,275 ,775 6 years 715,947 $ 175,947 12 years $ 416,1e2 26,102 5 years 3 99,753 $ 59,353 3 years Because the company's required rate of return is 8 a 8% discount rate has been used in the present value computations above Limited funds are available for investment, so the company can't accept all of the available projects Required: 1. Compute the project profitability index for each investment project 2. Rank the four projects according to preference in terms of net present value, project profitability index and internal rate of return Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the project profitability Index for each Investment project. Round your s to decal places.) $(450,000) $(540,000) $(390,000) $(340,000) Investment required Present value of cash inflows at a 83 discount rate Net present value Life of the project Internal rate of return 549.225 99,775 $ 399,353 715.947 $175,947 12 years 5 416,102 26,102 5 years Because the company's required rate of return is 8% a 8% discount rate has been used in the present value computations above Limited funds are available for investment, so the company can't accept all of the available projects Required: 1. Compute the project profitability Index for each investment project 2. Rank the four projects according to preference, in terms of net present value. project profitability index and internal rate of return Complete this question by entering your answers in the tabs below. Required 1 Required Rank the four projects according to preference, in terms of not present value, project profitably Index and internal rate of Net Present Value Project Profitability Internal Rate of Retum First preference Second preference Third preference Fourth preference here to search

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information System

Authors: James A. Hall

7th Edition

978-1439078570, 1439078572

More Books

Students also viewed these Accounting questions

Question

4-56. Our computers are serviced by the Santee Company.

Answered: 1 week ago

Question

4-57. The employees were represented by Janet Hogan.

Answered: 1 week ago