Chapter 25 - Homework Se Help Save & Exit Submit Check my work 1 GS 25-1 Payback period LO P1 125 DO Park Co. is considering an investment that requires immediate payment of $34,500 and provides expected cash inflows of $14.400 annually for four years. What is the investment's payback period? Choose Numerator Payback Period Choose Denominator - Payback Period Payback period Chapter 25 - Homework Seved Help Save & Exit Submit Check my work 2 125 pro Required information Use the following information for the Quick Study below. (The following information applies to the questions displayed below! Park Co. is considering an investment that requires immediate payment of $21.555 and provides expected cash inflows of $6,800 annually for four years. Park Co. requires a return on its investments OS 25-3 Internal rate of return LO P4 1. What is the internal rate of return? PV SLEV. 1. EVA 51 and EVA 31 (Use appropriate factors from the tables provided. Round your present value factor to 4 decimals) 3 Part 1 of 2 Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below) Project A requires a $290,000 initial investment for new machinery with a five-year life and a salvage value of $43,500 The company uses straight-line depreciation Project A is expected to yield annual net income of $23,900 per year for the next five years 125 points coce GS 25-5 Payback period LO P1 Compute Project As payback period Choose Numerator: Payback Period Choose Denominator: - Payback Period Payback period 4 Part 2 of 2 Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Project A requires a $290,000 initial investment for new machinery with a five-year life and a salvage value of $43,500 The company uses straight-line depreciation Project A is expected to yield annual net income of $23,900 per year for the next five years 1.25 ports w Hint QS 25-6 Accounting rate of return LO P2 Compute Project A's accounting rate of return. Choose Numerator: Accounting Rate of Return Choose Denominator Accounting Rate of Return Accounting rate of return 5 125 points Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below) Peng Company is considering an investment expected to generate an average net income after taxes of $2,400 for three years. The investment costs $49,500 and has an estimated $10.200 salvage value. Mine QS 25-8 Net present value LO P3 Assume Peng requires a 5% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation (PV of $1. EV of $1. PVA of $1 and EVA [ 51 (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value
