Jordan Modems, Inc. (JMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table, JMI has established a desired rate of return of 16 percent for these investment opportunities. Ignore Income Taxes. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) JFZ Note #1: PV of $1 denotes the factor table for single cash flows. PVA of $1 denotes the factor table for multiple, equal cash flows (.e. an annuity). Both Tables are posted in Modules. JFZ Note #2: Our Excel "Internal Rate of Return Calculator" (RR Calculator). posted on our class website in Modules, can be a great approach to confirming your answer! Opportunity Investment term 4 years 5 years 3 years 5 years Expected cash inflow $ 5,700 $ 7,100 $ 8,000 $ 3,300 $15,200 $21.300 $18,000 $10.900 Cost of investment Required a. Compute the net present value of each Investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example, b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator, Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. (Negative amounts should indicated by minus sign Round "Present value factor" to 6 decimal places. Round "Present value of cash flows and Net present value to 2 decimal places.) B D S 7,100 $ 3,300 8,000 $ Opportunity Cash Inflow Times present value factor Present value of cash flows Minus cost of investment Net present value $ 5,700 $ 2.798181 15,949.63 (15,200.00) 749.63 (21,300.00) (18,000.00) (10,900.00) $ Required A Required B > Jordan Modems, Inc. (JMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. JM has established a desired rate of return of 16 percent for these investment opportunities. Ignore Income Taxes. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) JFZ Note #1: PV of $1 denotes the factor table for single cash flows. PVA of $1 denotes the factor table for multiple, equal cash flows (e. an annuity). Both Tables are posted in Modules. FZ Note #2: Our Excel internal Rate of Return Calculator" (IRR Calculator), posted on our class website in Modules, can be a great approach to confirming your answer! Opportunity 4 years 5 years 3 years 5 years Expected cash inflow $ 5,700 $ 7,100 $ 8,000 $ 3,300 Cost of investment $15,200 521,300 $10,900 B D Investment term $18,000 Required a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator, Complete this question by entering your answers in the tabs below. Required A Required B Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator, (Negative amounts should indicated by minus sign. Round your answers to 2 decimal places.) Show less A B D Opportunity Net present value Internal rate of retum $ 749.83 18.45% % % %
