Discount Rate No. of Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.961 0.942 0.924 0.906 0.9615 0.9246 0.8890 0.8548 0.8219 0.9434 0.8900 0.8396 0.7921 0.7473 0.9259 0.8573 0.7938 0.7350 0.6806 0.9091 0.8264 0.7513 0.6830 0.6209 0.8929 0.7972 0.7118 0.6355 0.5674 0.8772 0.7695 0.6750 0.5921 0.5194 0.8621 0.7432 0.6407 0.5523 0.4761 0.8475 0.7182 0.6086 0.5158 0.4371 0.8333 0.6944 0.5787 0.4823 0.4019 0.888 0.871 0.853 0.837 0.820 0.7903 0.7599 0.7307 0.7026 0.6756 0.7050 0.6651 0.6274 0.5919 0.5584 0.6302 0.5835 0.5403 0.5002 0.4632 0.5645 0.5132 0.4665 0.4241 0.3855 0.5066 0.4523 0.4039 0.3606 0.3220 0.4556 0.3996 0.3506 0.3075 0.2697 0.4104 0.3538 0.3050 0.2630 0.2267 0.3704 0.3139 0.2660 0.2255 0.1911 0.1619 0.1372 0.1163 0.0985 0.0835 0.3349 0.2791 0.2326 0.1938 0.1615 0.1346 0.1122 0.0935 0.0779 0.0649 0.804 0.788 0.773 0.758 0.743 0.6496 0.6246 0.6006 0.5775 0.5553 0.5268 0.4970 0.4688 0.4423 0.4173 0.4289 0.3971 0.3677 0.3405 0.3152 0.3505 0.3186 0.2897 0.2633 0.2394 0.2875 0.2567 0.2292 0.2046 0.1827 0.2366 0.2076 0.1821 0.1597 0.1401 0.1954 0.1685 0.1452 0.1252 0.1079 Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) C. Initial investment Amount of net cash return $(60,000) UAWNPOU $(55,000) 11,000 11,000 11,000 11,000 11,000 11,000 $ 2,377 1.04 $(120,000) 38,400 38,400 38,400 38,400 38,400 24,000 24,000 24,000 14,400 ? $(120,000) 12,000 24,000 36,000 48,000 60,000 $(240,000) 72,000 72,000 36,000 36,000 36,000 36,000 $ 7,065 6-10 Per year NPV (14% discount rate) Present value ratio $ $ ? ? Vhich projects would you recommend for investment if the cost of capital is 14% and --1. $120,000 is available for investment? Multiple Choice Project A Project B Project C Project D Project E The following information applies to the questions displayed below. The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Year(s) $(60,000) Initial investment Amount of net cash return UAWNO $(55,000) 11,000 11,000 11,000 11,000 11,000 11,000 $ 2,377 1.04 Project $(120,000) 38,400 38,400 38,400 38,400 38,400 24,000 24,000 24,000 14,400 $(120,000) 12,000 24,000 36,000 48,000 60,000 $(240,000) 72,000 72,000 36,000 36,000 36,000 36,000 $ 7,065 6-10 Per year NPV (14% discount rate) Present value ratio $ ? ? --2. $366,000 is available for investment? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Project A ? Project B Project C 2 Project D 2 Project E The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $(60,000) Initial investment Amount of net cash return HNMtu $(55,000) 11,000 11,000 11,000 11,000 11,000 11,000 $ 2,377_ 1.04 24,000 24,000 24,000 14,400 ?_ $(120,000) 38,400 38,400 38,400 38, 400 38,400 $(120,000) 12,000 24,000 36,000 48,000 60,000 $(240,000) 72,000 72,000 36,000 36,000 36,000 36,000 $ 7,065 6-10 Per year NPV (14% discount rate) Present value ratio $ $ ? C-3. $610,000 is available for investment? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Project A Project B Project C Project D Project E