Heame Company has a number of potential capital imvestments, Becouse these projects vary in nature, intial investmont, and tirne Note: Use sppropriate factoris) from the tables provided. Project : Retooling Manufacturing Facility This project would require an initist investment of $4,970,000. It would generate $973,000 in additional net cash flow osch yont The new machinery has a useful ife of eight voars and a salvage value of $1,920,000 Project 2: Purchase Patent for New Product The potent would cost $3,820,000, which would be fuly amortized over five years. Production of this product would generate $706,700 additional annual net income for Heame. Project 3: Purchase a New Fleet of Dellvery Trucks Heame could purchase 25 new delivery trucks at a cost of $160,600 each. The foet would have a vioful ilfe of 10 years, and ench trock would have a salvage value of \$6.200. Purehasing the fleet would allow Hearne to expand ins customer ternicory, resulting in $239.000 of additional net income per yeat: Aequired: 1. Determine each projects accounting rate of return. 2. Determine esch projects payback poriod. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and peioritize the projects for Heorne. Complete this question by entering your answern in the tabs below. Determine each projects sccountiog rate of retum, Fote: Reund your answers to 2 obcimal paces: Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine each project's accounting rate of return. Note: Round your answers to 2 decimal places. 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine each project's payback period. Note: Round your answers to 2 decimal places. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Heame. Complete this question by entering your answers in the tabs below. Using a discount rate of 10 percent, calculate the net present value of each project. Note: Negative amount should be indicated by a minus sign. Round your intermediate calculations to 4 decimal places and freal answers to 2 decimal places. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine the profitability index of each project and prioritize the profects for Hearne. Note: Round your intermedlate calculations to 2 decimal places. Round your final answers to 4 decimal places
