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I need help on my Accounting Assignment. Please see the attached file for the chapter and problem questions.

Thank you and looking forward for your response.

CHAPTER 8 ACC 206 EXERCISE 1 Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar: a. A single cash inflow of $12,100 in 5 years, discounted at a 12% rate of return. Note: Enter rate and use a column with zero amount for years 1-4 and 12000 entered in year 5 b. c. An annual receipt of $16,100 over the next 12 years, discounted at a 14% rate of return. A single receipt of $15,100 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rateof return. d. An annual receipt of $8,000 for 3 years followed by a single receipt of $10,000 at the end of Year 4. The company has a 16% rate of return. EXERCISE 3 Straightforward net present value calculations Contempo Inc. is considering the acquisition of some new labor-saving equipment. Management estimates that the equipment will cost$42,000 and will produce the following savings in cash ope rating costs during the next 5 years: Year 1, $16,000; Year 2, $13,000; Year 3,$10,000; Year 4, $1 0,000; and Year 5, $6,000. The company uses the net present value method to analyze investment s and desires a minimumrate of return of 12%. a. Compute the net present value of the proposed investment. Ignore income taxes and roun d to the nearest dollar. b. Considering the time value of money , should Contempo acquire the new equipment? Wh y? PROBLEM 3 Straightforward net present value and payback computations The Calgary Eskimos play in the Canadian Hockey League. Although the Eskimos will soon be moving to a modern arena, management isstudying the possibility of expanding the team's presen t facility to accommodate increased crowds. A $2.4 million expansion is planned that has a $200,000 residual value and will be depreciated by the straight-line method over four seaso ns. Information about the expansion follows: Number of seats Class 1 seats Occupancy rate Ticket price 2,500 80% $6 Class 2 seats 2,000 60 4 The team will play 52 home games each season. Total added operating costs per game (ushers, cl eanup, and depreciation) are expected toaverage $11,800. All such costs, except depreciation, req uire cash outlays. Instructions a. By using the net present value method and a 16% desired rate of return, determine whether the expansion should be undertaken. Revenue per year class 1 Revenue per year class 2 Total revenue Total yearly expenses Cash flow year 1 (inflows-expenses) Cash flow year 2 Cash flow year 3 Cash flow year 4 Net present value (NPV) Present value of residual: Year 1 Year 2 Year 3 Year 4 NPV Total present value calculation: NPV cash inflow NPV of residual: Cost of Arena Total NPV b. In addition to the cash flows presented here, what other cash flows might change if the Eskimos add on to the arena? PROBLEM 4 Equipment replacement decision Columbia Enterprises is studying the replacement of some equipment that originally cost $74,000. The equipment is expected to provide 6more years of service if $8,700 of major re pairs are performed in 2 years. Annual cash operating costs total $27,400. Columbia can sell thee quipment now for $36,000; the estimated residual value in 6 years is $5,000. New equipment is available that will reduce annual cash operating costs to $21,350. The equipm ent costs $103,000, has a service life of 6years, and has an estimated residual value of $13,000. Company sales will total $430,000 per year with either the existing or the newequipment. Columbia has a minimum desired return of 12% and depreciates all equipment by the straightline method. Instructions a. By using the net present value method, determine whether Columbia should keep its pres ent equipment or acquire the new equipment.Round all calculations to the nearest dollar, and i gnore income taxes. Keep equipment: Year 1 cost Year 2 cost Year 3 cost Year 5 cost Year 6 cost NPV of cost Note: Disregard the sale amount that will be used if we buy new equipment. Instead treat the residual value as the final cash inflow Buy Equipment: Year 1 cost Year 2 cost Year 3 cost Year 5 cost Year 6 cost NPV of cost Add: purchase amount Add: sale amount NPV of costs Note: The yearly costs are added and are negative cash flow. The cost of the new machine is also negative and the sale of the equipment is positive. Both the purchase and sale are treated as cash flows as of today. b. Columbia's management believes that the time value of money should be considered in al l long-term decisions. Briefly discuss therationale that underlies management's belief. (NOTE: INDICATE YOUR SOLUTION)