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help meee .8 Each of the following scenarios is independent. Assume that all cash fows are after-ax cash fows. a. Cobre Company is considering the

help meee .8
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Each of the following scenarios is independent. Assume that all cash fows are after-ax cash fows. a. Cobre Company is considering the purchase of new equipment that will speed up the process for extracting copper. The equipment will cost $4,600,000 and have a life of 5 years with no expected salveoe value. The avmaried cash fows associated with the project are as follows: b. cmury mansen is considering investing in one of the following two projects. Either project will require an investment of $75,000. The expected cash revenues minus cash expenses for the two groiects follow. Assume each project is depreciable. c. Suppose that a project has an ARR of 30% (based on inicial investment) and that the average net inceme of the project is 5220,000 . d. Suppose that a project has an ARR of 50% and that the investment is $225,000. Requiredz 1. Compute the ARR on the new equipment that Cobre Company is considering. Round your answer to one decimal place. c. Supbose that a project hes en ARR of 30% (based on initial investment) and that the average net income of the project is $220,000 d. Suppose that a project has an ARR of 505 and that the investment is $225,000. Required: 1. Compute the ARR on the new equipment that Cobre Company is considering. Round your answer to one decimal place. 2. Conceptual Connection: Which project should Emily Honsen choose based on the ApR? Notice that the payback period is the same for both investments (thus equally preferred). Untike the payback period, explain why ARA correctly signais that one project should be preferred over the other. Based on the ARR, Emily Hansen chosen 3. How much did the company in Scenario c invest in the project? Round your answer to the nearest whole dollar. 4. What is the average net income eamed by the project in Scenario d

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