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if you could please fill in the answers in the same table format of the questions. D 2 D 3 Bookmarks My Subscriptions. Y G
if you could please fill in the answers in the same table format of the questions.
D 2 D 3 Bookmarks My Subscriptions. Y G Goo lew Tab M Accounting My Nevada Hearne Company has a number of potential capital investments Because these projects vary in nature, Project 1: Retooling Manufacturing Facility This project would require an initial investment of $5,800 ,000 It would generate $1,036,000 in Project 2: Purchase Patent for New Product The patent would cost $4,065,000, which would be fully amortized over five years Production of this product wouid generate $894 300 additional annual Project 3: Purchase a New Fleet of Delivery Trucks Heame coukd purchase 25 new delivery trucks at a cost of S210,000 each. The fleet would have a useful iniial investment, and tme horizon, management s finding it doficut to compare them Assume straight ine depreciation method is used additional net cash flow each year The new machinery has a useful life of eight years net income for Heame resulting in $1,155,000 of additional net income per year lite of 10 years, and each truck would have a salvage value of $6,900 Purchasing the fet would alow Hearne to expand ts customer tentory Required 1. Determine each project's accounting rate of returm (Round your answers to 2 decimal places.) of R Project 1 Project 2 Project 3 2 Determine each project's payback perod (Round your answers to 2 decimal places) Project 1 Project 2 Project 3 Years ears 1 ) (Use appropriate factoris) from the tables provided. Round your 3. Using a discount rate of 10 percent calculate the net present value of each intermediate calculations to 4 decimal places and final answers to 2 decimal places.) 6:06 PM 11/11/2012Step by Step Solution
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