Exercise 12-1 Payback Method (L012-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment 1 $53,000 12 $ 3,800 3 4 5 6 7 8 9 10 Cash Inflow $ 3,000 5.6,000 $14,000 $15,000 $18,000 516,000 $14,000 $12,000 $11,000 $11,000 Required: 1. Determine the payback period of the investment 2. Would the payback period be affected if the cash Inflow in the last year were several times as targe? Complete this question by entering your answers in the tabs below. Required 1 Required Determine the payback period of the investment. (Round your answer to 1 decimal place. Payback period years Exercise 12.1 Payback Method (LO12-1) The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows Year Investment 1 $53,000 2 $ 3.600 3 5 6 Cash Inflow $ 3.600 $5,000 514.00 $15,000 $18,000 516,000 514.000 $12.000 $11,000 $11,000 8 9 10 Required: 1 Determine the payback period of the investment 2. Would the payback period be affected if the cash inflow in the last year were several times as largo? Complete this question by entering your answers in the tabs below. Required Required Would the payback period be affected in the cash Intlow in the last year were several times as laror? OY No Exercise 12-14 Comparison of Projects Using Net Present Value (LO12-2] Labeau Products, Ltd. of Perth, Australia, has $15,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest Invest in in Project Project Investment required $ 15,000 $15,000 Annual cash inflows 55,000 Single cash inflow at the end of 6 years $36,000 Life of the project 6 years 6 years ok 1 The company's discount rate is 16% Click here to view Exhibit 12B1 and Exhibit 128-2, to determine the appropriate discount factor(s) using tables, Required: 1. Compute the net present value of Project X 2. Compute the net present value of Project Y, 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required) Compute the net present value of Project X. (Negative amount should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present VB.30 Exercise 12-14 Comparison of Projects Using Net Present Value [LO12-2] Labeau Products, Ltd., of Perth, Australia, has $15,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest Invest in in Project Project Investment required $ 15,000 $15,000 Annual cash inflows $ 5,000 Single cash inflow at the end of 6 years $ 35,000 Life of the project 6 years 6 years The company's discount rate is 16% Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Required 1 Reiluired 2 Required 3 Compute the net present value of Project Y. (Negative amount should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net presenti Required Required 3 > Exercise 12-14 Comparison of Projects Using Net Present Value (L012-2] Labeau Products, Ltd. of Perth, Australia, has $15,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest Invest in Project Project Investment required $15,000 $15,000 Annual cash inflows $ 5,000 Single cash inflow at the end of 6 years $36,000 Life of the project 6 years 6 years in The company's discount rate is 15% Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factoris) using tables Required: 1. Compute the net present value of Project X 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which project would you recommend the company accept? Project X Project Required 2
