Hello,
I need help with figuring out the tables for Required A and Required B
Dwight Donovan, the president of Rundle Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life ofthree years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $101,000 and for Project B are $40,000. The annual expected cash inflows are $39,901 for Project A and $17,229 for Project B. Both investments are expected to provide cash ow benets for the next three years. Rundle Enterprises' desired rate of return is 6 percent {PV of $1 and PVA of $1] {Use appropriate fector(s} from the tables provided.) Required a. Compute the net present value of each project Which project should be adopted based on the net present value approach? b. Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of eadt project. Which project should be adopted based on the net present value approadt? (Round your final answers to 2 decimal places.) Project A Project B Which project should be adopted? Required B ) Dwight Donovan, the president of Rundle Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $101,000 and for Project B are $40,000. The annual expected cash inflows are $39,901 for Project A and $17,229 for Project B. Both investments are expected to provide cash ow benets for the next three years. Rundle Enterprises' desired rate of return is 6 percent (PV of $1 and PVA of $1] (Use appropriate fector(s} from the tables provided.) Required a. Compute the net present value of each project. Which project should be adopted based on the net present value approach? b. Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Complete this quaitiun by entering your answers in the tabs below. Required A Required B Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approad'l? Project A Project B Which project should be adopted?
