I need serious Graduate Managerial Accounting Help! Please review highlighted Chap 8 exercises 8 & 11

Managerial Accounting for Managers, Fourth Edition -----+- Capital Budgeting Decisions Required: What dollar value per year would these intangible benefits have to have to make the equipment an acceptable investment? EXERCISE 8-5 Preference Ranking [LO 8-5] Information on four investment proposals is given below: 126,000 138,000 105,000 Net present value $ 36,000 $ 38,000 $ 35,000 Life of the project 5 years 7 years 6 years Present value of cash inflows ....... . 6 years Required: l. Compute the project profitability index for each investment proposal. 2. Rank the proposals in terms of preference. EXERCISE 8-6 Simple Rate of Return Method [LO 8-6] The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $120,000. The machine would replace an old piece of equipment that costs $30,000 per year to operate. The new machine would cost $12,000 per year to operate. The old machine cun-ently in use could be sold now for a scrap value of $40,000. The new machine would have a useful life of l 0 years with no salvage value. Required: Compute the simple rate ofreturn on the new automated bottling machine. EXERCISE 8-7 Net Present Value Analysis of Two Alternatives [LO 8-2] Perit Industries has $100,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: $100,000 Working capital Investment required .................... . Annual cash inflows . , ................................ . $21,000 $16,000 Salvage value of equipment in six years ................. . $8,000 $0 Life of the project 6 years ............................. . The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 143. Required: Which investment alternative (if either) would you recommend that the company accept? Show all computations using the net present value format. Prepare separate computations for each project. EXERCISE 8-8 Payback Period and Simple Rate of Return [LO 8-1, LO 8-6] Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimates that annual revenues and expenses associated with the games would be as follows: ~ 361 361 I I ! 362 -------1------------- 362 BA510 Chapter 8 $200,000 Revenues ................................ . Less operating expenses: Commissions to amusement houses ....... . $100,000 Insurance .............................. . 7,000 Depreciation ............................ . 35,000 Maintenance ........................... . 18,000 160,000 $ 40,000 Net operating income ...................... . Required: 1. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? 2. Compute the simple rate of return promised by the games. If the company requires a simple rate of return of at least 12%, will the games be purchased? EXERCISE 8-9 Net Present Value Analysis and Simple Rate of Return [LO 8-2, LO 8-6] Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,000,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 15%. The project would provide net operating income each year for five years as follows: $2,500,000 Sales ................................ . Variable expenses ..................... . Contribution margin ................... . Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs ................ . $600,000 Depreciation ........................ . 600,000 Total fixed expenses . : ................. . Net operating income .................. . Required: 1. Compute the project's net present value. 2. Compute the project's simple rate of return. 3. Would the company want Derrick to pursue this investment opportunity? Would Derrick be inclined to pursue this investment opportunity? Explain. EXERCISE 8-10 Basic Net Present Value Analysis [LO 8-2] Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14% on all of her investments. She is not sure whether the Malti Company stock provided a 14% return and would like some help with the necessary computations. Required: Using the net present value method, determine whether or not the Mal ti Company stock provided a 14% return. Round all computations to the nearest whole dollar. EXERCISE 8-11 Preference Ranking of Investment Projects [LO 8-5] Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows