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I would appreciate your help, thank you! FIUVIEN IL-13 USEVI PIUNTIL HUE LLUIZ] You are asked to evaluate the following two projects for the Norton

I would appreciate your help, thank you!
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FIUVIEN IL-13 USEVI PIUNTIL HUE LLUIZ] You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 11 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Project X (Videotapes Project Y (Slow-Motion of the Weather Report) Replays of Commercials) ($12,000 Investment) ($32,000 Investment) Year Cash Flow Year Cash Plow 1 $ 6,000 $ 16,000 4,000 2 9,000 3 5,000 3 10,000 4,600 12,000 1 2 a. Calculate the profitability Index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.) es Profitability index b. Calculate the profitability Index for project Y. (Do not round Intermediate calculations and round your answer to 2 decimal places.) Profitability Index King's Department Store is contemplating the purchase of a new machine at a cost of $24,712. The machine will provide $4,300 per year in cash flow for eight years, King's has a cost of capital of 10 percent. Use Aprendix D for an approximate answer but calculate your final answer using the financial calculator method a. What is the internal rate of return? (Do not round intermediate calculations, Enter your answer as a percent rounded to 2 decimal places.) Internal rate of retum % b. Should the project be undertaken? Oyes no Saved Help The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 10 percent. It will only invest $66,400 this year. It has determined the internal rate of return for each of the following projects. Project A 33 c D E F G Project Sito $11,600 16,600 26,600 11,600 11,600 21,600 16,600 Internal Rate of Return 220 16 18 20 11 13 21 a. Pick out the projects that the firm should accept (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Project B 2 Project 2 Project D Project G Project A Project E Project b. If Projects A and G are mutually exclusive, which projects would you accept in spending the $66,400? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) 2 Project A Project E 2 Project D 2 Project F 2 Project 2 Project G > Project B Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment Project H represents an investment in a hydraulic lift. Keller wishes to use a net present value profile in comparing the projects. The investment and cash flow patterns are as follows: Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Project 2 (54,000 Investment) Year Cash Flow 1 $12,000 2 16,000 3 26,000 4 33,000 Project 1 ($48,000 Investment) Year Cash Flow 1 $24,000 2 17,000 3 18,000 a. Determine the net present value of the projects based on a zero percent discount rate Net Present Value Project E Project H b. Determine the net present value of the projects based on a discount rate of 11 percent. (Do not round intermediate calculations and round your answers to 2 decimal places.) Net Present Value Project E Project H Project E Project H ped OL b. Determine the net present value of the projects based on a discount rate of 11 percent. (Do not round intermediate calculatie and round your answers to 2 decimal places.) ht Net Present Value nces Project E Project H c. If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 11 percent? Project E Project H Both Hand E

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