Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E12-27A (similar to) Use the NPV method to determine whether Kyler Products should invest in the following projects: Project A costs $285,000 and offers eight

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

E12-27A (similar to) Use the NPV method to determine whether Kyler Products should invest in the following projects: Project A costs $285,000 and offers eight annual net cash inflows of $64,000. Kyler Products requires an annual return of 16% on projects like A. Project B costs $395,000 and offers nine annual net cash inflows of $74,000. Kyler Products demands an annual return of 10% on investments of this nature. (Click the icon to view the present value annuity table.) Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) 2 (Click the icon to view the future value table.) Requirement What is the NPV of each project? What is the maximum acceptable price to pay for each project? Calculate the NPV of each project. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV of Project A is $ Present Value of Annuity of $1 Periode 195 3% 4% 89% 12% 5% 0.952 8% 0.926 1.783 10% 0.909 1.736 2487 3.170 14% 10% 0.877 0.862 1.605 2.322 2.246 29142798 19% 0.847 1.566 1.690 20% 0.833 1.528 2.106 2.589 2402 3.037 2.690 838 888 333 888 988 38228 8000 OO NOS a888 389 15.372 19.600 32.835 27.355 23.115 19.793 17.159 15.046 13.765 11.925 9.427 9.779 Present Value of $1 Periods 18% 18% 88 20% 0.833 0.694 0.579 0.482 DOOR loooooOOOOOOOOOOOOO 63 33 888 689 OOOOOOOOOOOOOoo Do JOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOO 8888888888888888 6600 0.112 0.116 0.093 0.078 0.084 0.065 0.037 0.026 0.0160.010 0.007 0.004 0.001 0.001 588 0.672 0.453 0.307 0.012 0.003 0.208 0.097 0.046 0.022 0.0110.005 1% 1.000 4% 1.000 12% 1.000 2 120 3374 3.030 4060 5.101 6.152 7214 8.286 9.369 10.462 11.567 12.683 13.809 14947 16.097 22.019 28.243 34.785 48.886 2% 1.000 2.020 3.060 4.122 5.204 6.308 7434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24 297 32030 40.568 60.402 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.005 95 026 Future Value of Annuity of $1 5% 6% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442 593 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32393 37.280 72.052 133 334 241 333 767.091 149% 1896 1896 2056 1.000 1.000 1.000 1.000 2140 2160 2.180 2.200 3.440 3.506 3572 3.640 4921 5.066 5.215 5.368 6.610 6.877 7.154 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34 931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312 | 790 948 1,181.882 1,342 0252,360.7574,163.2137.343.858 Future Value of $1 Periods T 19% 12% 1.120 14% 1.140 1% 1.010 1.020 1.030 1.041 2% 1.020 1040 1.061 1.082 1.104 5% 1.050 1.103 1.158 1.216 1276 8% 1.060 1.124 1.191 1.262 1.338 10% 1.100 1.210 1.331 1.454 1.611 1294 1.300 18% 1.160 1.346 1.561 1.811 2.100 1405 1.180 1.392 1.643 1.939 2.288 1.482 1.689 1.574 1.762 1.051 1.419 1.062 1.072 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1267 1.305 1.344 1.384 1.426 1.469 1.772 1.949 2435 1504 1.126 1.149 1.172 1.195 1.219 1083 2144 1.594 1.689 VA 4% 1.040 1082 1.125 1.170 1.217 1265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2. 191 2.666 3.243 1.094 1.105 1.116 2.358 1.791 9% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2159 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 1.340 1407 1.477 1.551 1629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7040 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 1.243 1.268 1.294 1.319 1.346 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 1.974 2211 2.476 2.773 3.106 3479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 1138 2.853 3.138 3.452 3.797 4.177 1513 1.898 2012 2.133 2.261 2.397 3.207 4202 5.743 10.286 1.149 1.161 3.803 4411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 1.558 1.806 2.094 2.427 3.262 1.220 1.486 1.641 1.811 2208 6.727 10.835 17 449 49.250 27.393 62.669 143.371 750.378 1.348 1.489

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

Students also viewed these Accounting questions

Question

What reporting process does Fatima needs to consider

Answered: 1 week ago