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I need help with these 2 questions. Problem 14-17 (Algo) Net Present Value Analysis; Internal Rate of Return; Simple Rate of Return [LO14-2, LO14-3, LO14-6]

I need help with these 2 questions.

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Problem 14-17 (Algo) Net Present Value Analysis; Internal Rate of Return; Simple Rate of Return [LO14-2, LO14-3, LO14-6] Exercise 14-13 (Algo) Payback Period and Simple Rate of Return Computations [LO14-1, LO14-6] investment (ROD) which hack sion's return on A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in one of require a $5,510,000 Investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate Is its plants in Japan. Relevant data relating to the equipment follow: 19%. The project would provide net operating income each year for five years as follows: Purchase cost of the equipment $ 412, 500 sales 2 , 280 , 808 savings that will be artable expenses Anprovided by the equipment Life of the equipment $ 75 , 000 2 , 780 , 800 10 years Fixed expenses: Advertising, salaries, and other fixed out-of -pocket costs Required: eferences $ 850, 00 Depreciation 1a. Compute the payback period for the equipment. Total fixed expenses 1, 952, 080 ck period of four years or less, would the equipment be purchased? 1b. If the company realstate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. Net operating income 2b Would the equipment be purchased if the company's required rate of return Is 12%? Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. required. Complete this question by entering your answers in the tabs below. . What is the project's net present value? 2 What is the project's internal rate of return to the nearest whole percent? would the company want Casey to pursue this investment opportunity ? Req 1A Req 1B Req 2 A Req 2B 4-b. Would Casey be Inclined to pursue this investment opportunity? Compute the payback period for the equipment. (Round your answer to 1 decimal place.) Complete this question by entering your answers in the tabs below. Years Req 1 Req 2 Req 3 Req 4A Req 4B Req 1B > What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Req 2 > Reg 1 Req 2 Req 3 Reg 4A leq 4B Req 1A Req 1B Req 2A Req 2 What is the project's internal rate of return? (Round your answer to the nearest whole percentage, i.e. 0.123 should be considered as 12%.) If the company requires a payback period of four years or less, would the equipment be purchased? OYes NO Req 1 Req 2 Req 3 Req 4A Req 4B What is the project's simple rate of return? (Round your answer to 1 decimal place.) Simple rate of return Req 1A Req 1B Req 2A Req 2B Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's usefu life. (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Simple Rate of Retur % Req 1B Req 2B > Req 1 Req 2 Reg 3 Req 4A Req 4B Would the company want Casey to pursue this investment opportunity? Yes NO Req 1A Req 1B Req 2A Req 2E Would Casey be inclined to pursue this investment opportunity? Would the equipment be purchased if the company's required rate of return is 12%? OYes ONO Yes No

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