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Exercise 13-1 Payback Method [LO13-1] The management of Unter Corporation, an architectural design firm, Is consldering an Investment with the following cash flow: Year Investment
Exercise 13-1 Payback Method [LO13-1] The management of Unter Corporation, an architectural design firm, Is consldering an Investment with the following cash flow: Year Investment Cash Inflow $57,000 $ 7,900 3,000 $ 6,000 $12,000 $13,000 $16,000 $14,000 $12,000 $10,000 $ 9,900 $ 9,000 4 10 Requirec 1. Determine the payback period of the Investment. 2. Would the payback perlod be affected if the cash inflow In the last year were several times as large? Complete this question by entering your answers in the tabs below Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years Required 1 Required 2 > Exercise 13-1 Payback Method [LO13-1] The management of Unter Corporation, an archltectural design firm, is consldering an Investment with the following cash flows: Year Investment Cash Inflow $3,000 6,000 $12,900 $13,900 $16,000 $14,900 $12,000 $10,000 $ 9,000 $9,000 $57,000 $ 7,900 4 19 Requirec 1. Determine the payback perlod of the Investment. 2. Would the payback perlod be affected if the cash Inflow In the last year were several times as large? Complete this question by entering your answers in the tabs below Required 1Required 2 Would the payback period be affected if the cash inflow in the last year were several times as large? OYes ONo K Required 1 Required2 Exercise 13-2 Net Present Value Analysis [LO13-2] The management of Kunkel Company is considering the purchase of a $30,000 machine that would reduce operating costs by $6,500 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's required rate of return is 12%. Click here to view Exhlibit 138-1 and Exhlbit 13B-2, to determine the approprlate discount factor(s) using table. Required 1. Determine the net present value of the Investment In the machlne 2. What is the difference between the total, undiscounted cash Inflows and cash outflows over the entire life of the machine? Complete this question by entering your answers in the tabs below Required 1 Required 2 Determine the net present value of the investment in the machine. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount. Use the appropriate table to determine the discount factor(s). Net present value Required 1 Required 2> Exercise 13-2 Net Present Value Analysis [LO13-2] The management of Kunkel Company is consldering the purchase of a $30,000 machine that would reduce operating costs by $6,500 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's required rate of return is 12%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the approprlate discount factor(s) using table. Required 1. Determine the net present value of the Investment In the machine. 2. What is the difference between the total, undiscounted cash Inflows and cash outflows over the entlre life of the machlne? Complete this question by entering your answers in the tabs below Required 1 Required 2 What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine? (Any cash outflows should be indicated by a minus sign.) Total difference in undiscounted cash inflows and outflows Required 1 Required2
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