I need a help in Financial accounting questions.(3)

1.

A company has $40,000 available to invest in either Project D or Project E. The company's required rate of return (discount rate) is 10%. The following data are available on these projects:

	Project D	Project E
Investment required	$ 40,000	$ 40,000
Annual cash inflows	$ 10,000	0
Single cash inflow at the end of 5 years	0	$ 65,000
Life of the project	5 years	5 years

What is the net present value of Project E? (Select the answer that is closest to your calculations.)

$ 15,000

$ 0

$ 365

$ (365)

16.

value: 3.50 points

A company has $40,000 available to invest in either Project D or Project E. The company's required rate of return (discount rate) is 10%. The following data are available on these projects:

	Project D	Project E
Investment required	$ 40,000	$ 40,000
Annual cash inflows	$ 10,000	0
Single cash inflow at the end of 5 years	0	$ 65,000
Life of the project	5 years	5 years

What is the net present value of Project D? (Select the answer that is closest to your calculations.)

$ 2,090

$ 10,000

$ (2,090)

$ 30,000

17.

value: 3.50 points

The following information pertains to a proposed investment:

18.

value: 3.50 points

A company is considering the purchase of a machine for $15,000 that would reduce operating costs by $5,000 per year for 10 years. The machine will have no scrap value (residual value) at the end of its 10-year useful life. The company's required rate of return is 11%.

What is the net present value of the investment in the machine? (Select the answer that is closest to your calculations.)

	$29,448
	$14,445
	$35,000
	$18,450

Discount rate	9%
Life of the project	6 years
Initial investment cost	$60,561
Annual cost savings	13,500
Salvage value	2,700

What is the net present value of the proposed investment? (Select the answer that is closest to your calculations.)

$60,561.

$1,609.

?$1,609.

$0.

18.

value: 3.50 points

A company is considering the purchase of a machine for $15,000 that would reduce operating costs by $5,000 per year for 10 years. The machine will have no scrap value (residual value) at the end of its 10-year useful life. The company's required rate of return is 11%.

What is the net present value of the investment in the machine? (Select the answer that is closest to your calculations.)

	$29,448
	$14,445
	$35,000
	$18,450

19.

value: 3.50 points

A company has $30,000 available to invest in either Project J or Project K. The company's required rate of return (discount rate) is 15%. The following data are available on these projects:

	Project J	Project K
Investment required	$ 30,000	$ 30,000
Annual cash inflows	$ 10,000	0
Single cash inflow at the end of 7 years	0	$ 80,000
Life of the project	7 years	7 years

What is the net present value of Project J? (Select the answer that is closest to your calculations.)

	$ 10,500
	$ 602
	$ 40,000
	$ 11,600