Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help with this please! Cost $400,000 Life = 3 years Residual = $0 Present Value of $1 at Compound Interest Periods 4.0% 4.50% 5.0% 5.50%
Help with this please!
Cost $400,000 Life = 3 years Residual = $0 Present Value of $1 at Compound Interest Periods 4.0% 4.50% 5.0% 5.50% 6.0% 6.50% 7.0% 7.50% 8.0% 1 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 2 0.92456 0.91573 0.90703 0.89845 0.90703 0.89845 0.89000 0.88166 0.87344 0.86533 0.85734 3 0.88900 0.87630 0.86384 0.86384 0.85161 0.83962 0.83962 0.82785 0.81630 0.80496 0.80496 0.79383 4 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.74880 0.73503 5 5 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.69656 0.68058 6 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 0.64796 0.63017 7 0.75992 0.73483 0.71068 0.68744 0.71068 0.68744 0.66506 0.64351 0.62275 0.62275 0.60275 0.60275 0.58349 8 0.73069 0.70319 0.67684 0.65160 0.65160 0.62741 0.60423 0.58201 0.56070 0.54027 9 0.70259 0.67290 0.64461 0.61763 0.59190 0.56735 0.54393 0.52158 0.50025 10 0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.48519 0.46319 Year Accounting Income Cash Flow 1 $29,067 $162,400 2 $19,787 $153,120 3 $15,147 $148,480 Total $64,001 $464,000 Complete the table below to calculate NPV and determine if the analysis indicates that the project should be accepted or rejected. Present Value of an Annuity of $1 at Compound Interest Periods 4.0% 4.50% 5.0% 5.50% 6.0% 6.50% 7.0% 7.50% 8.0% 1 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 2 1.88609 1.87267 1.85941 1.84632 1.83339 1.82063 1.80802 1.79557 1.78326 3. 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 2.60053 2.57710 4 4 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.38721 3.34933 3.31213 5 4.45182 4.38998 4.32948 4.27028 4.21236 4.15568 4.10020 4.04588 4.04588 3.99271 6 524214 5.15787 5.07569 4.99553 4.91732 4.84101 4.76654 4.69385 462288 - 7 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929 5.29660 5.20637 8 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 5.85730 5.74664 9 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 6.37889 6.24689 10 8.11090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 6.86408 6.71008 The Desired RATE OF RETURN IS 8.0% Use the Present Value tables and forecast information provided above. Make sure you complete ALL drop-downs. Round numbers to the nearest dollar Year PV Factor Present Value 1 1 S 0.92593 2 $ 3 S Total s Less: enter as negative s NPV s Accept or Reject Project Internal Rate of Return (IRR) isStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started