Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Labeau Products, Ltd. of Perth, Australia, has $25,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Labeau Products, Ltd. of Perth, Australia, has $25,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project Invest in Invest in Project X Project $ 25,000 $ 25,000 $ 8,000 $ 60,000 6 years 6 years The company's discount rate is 18% Click here to view Exhibit 128.1 and Exhibit 120.2. to determine the appropriate discount factor(s) using tables Required: 1. Compute the net present value of Project 2. Compute the net present value of Project Y 3. Which project would you recommend the company accept? DOT 201 Part of the 18 M 9 6 OL Pad 101 Is 12% 12 sex 151 75 0962 0.952 0943 0.935 0.926 0917 0.909 0901 0893 088 0877 08700862 0.855 08470840 09 0826 0820080 OBS 0800 2 0925 0907 090 0873 085708420826 0812 0797 073 0769 0756 0743 0731 07180206 0694 068 0672 0661 0650 0640 3 0.889 0854 0340 0816 07 072 0751 0731 0712 0693 0675 0658 0641 0624 0609 0583 057 0564 0551 0537 054 0512 4 0855 0821 0 792 0763 0735 0708 063 0659 0536 061) 0592 0572 0552 0534 0560499 042 046704510437 0423 0410 5 0822 0784 077 0713 0681 0650 0621 0593 0567 0543 059 0497 0475 0456 0437 0419 0402 0.386 0.3700355 0341 0228 079007060705 0666 0630 0596 0564 0535 0507 0.480 0456 0432 04100390 0.370 0352 0335 0.319 0300 0280 0275 0252 7 07500711 0665 0623 0583 0547 0513 0482 0452 0425 0000 0376 0354 0333 0314 0295 029 0263 0719 0235 om 0210 0731 0677 0627 0582 0540 0502 0 467 0434 0.404 0376 0351 0327 0305 028 0 266 0249 0232 07180.704 019 01790168 070306150592 0544 0.500 0.450 0424 0391 0361 0333 0.308 0284 0263 023 0225 0209 014 OTRO 01570955 014 0134 0.676 064 0558 0508 0:463 0422 0.386 0.352 0.322 0295 0270 0247 0.227 0208 0191 0176 09620149 0137 0126 0116 0107 0650 055 0527 0475 0429 038 0350 0.317 0287 0261 0232 021501950178 0162 080135013 012 01000094 0085 12 0625 0557 0497 0444 0.397 0.356 0.319 0286 0257 0231 0208 0187 0168 0152 0137 0124 0112 0102 0092 003 0076 0069 0601 0530 0409 0415 0368 0.326 0.290 0258 0229 0.204 12 0163 0450100116 09040093 0084 0075 006 0061 006 0577 0.505 0442 0388 0.340 0299 0.263 0222 0205 0381 010 0101250m 009 008 007 0069 0002 0055 0049 004 15 0555 0681 0.417 0362 0.3 0275 0.239 0209 0983 0360 0510 0123 0108 009 0084 0074 0065 0057 0051 0045 0000 0035 0534 045# 0394 039 0292 0252.07 01880163 0941 0123 0907 003 001 con 0002 0054 0047 0042 000 002 0028 05 0436 037 0.317 0270 0231 0198 0170 060125 OO 0093 000 0069 00600052 0045 009 0034 0030 0.025 0.02 18 049404160350 026 0250 0212 010 0153 01001100 00 00 0059 005 004 000 000 002 0024 000 19 0475 0.396 0.33 027 0232 0194 0164 0138 0160098 008 0020 0000 0051 000 0000 0027 002) 0020 000 000 20 044 0 1 0 12 0 2 0 2 012H 4 0 0 0 0 0 0 0 0 0 0 0 1 0 4 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21 0039 0.359 0294 0242 0199 0164 0050112 0.003 0077 0064 0.053 00 00 0031 0026 0022 000 001500100110000 22 0422 0.342 027 0226 0184 01500123 01 OO 006 00 00 00 00 0026 0022 0000150010011 000 000 21 0406 0.326 0262 021101700138 01120091 0074 0060 0049 000 000 0027 0022 00 0095 000 000 000 0002 0.005 20 02000247 0197 01580126 0102 002 0000 0053 003 00 00 002 0019 0015 000 0000 000 000 0000 0005 25 0.375 0795 0233 01840146 0116 0092 007 0059 000 000 0000 0024 0020 0016 000 000 000 000 000 000 0004 25 1036 026 0220 0172 01350106 0084 0006 0053 0042 003 0026 0021 000 004 con 000 000 0005 0005 004 0003 22 0347 026 0207 0161 0125 009 0076 0060 002 0037 00 00 00 00 Con 0009 000 000 0005 0000 0003 002 28 030255 07960150 0116 00900069 0054 0042 003 0026 0020 004 0012 000 000 000 0005 0004 0003 0002 0.002 2 0.321 020 010141 0.007 OOR2 0063 000 001 0029 0022 00 00 00 00 000 000 000 000 000 0002 000 03 023101740131 0099 00750057 004 0033 0026 00200015 0012 000 000 0005 0000 0000 0000 0002 0002 0001 200.142 0097 02 000000002 0015 0011 000 0005 000 000 000 000 000 000 000 000 0000 0000 0000 09 - EXHIBIT 1202 Present Value of an Annuity of St in Arrears: WEZ Periods as 5% 7 93 1 2013 21% 1 09520952 0943 09350926 0907 099 0901 0893 0885 0877 08700862 0855 0847 08400833 0826 0820 ORU 0805 0800 2 1886 1859 1833 1808 1783 1759 1735 170 1690 1668 1647 1626 1605 15851566 1547 1528 1509 1492141414571440 2775 2723 2573 2524 2577 2531 2487 240 2402 2361 2322 2283 2246 2210 2124 2025 2074 2002 2011 1981 1952 4 3630 3.546 34653387 3312 3.240 3.170 3102 3037 2976 2914 2855 2798 273 2690 2639 2589 2500 2494 243 244 2302 5 4452 4329 4212 4100 3993 3890 37913696 3605 3517 3433 3352 3274 3199 3127 3058 2991 2926 284 2803 265 269 6 5.242 5075 4917 4757 4623 4 485 4355 42214111 3998 369 3784 3685 3589 3.498 3410 3326 325 33673092 1020 2051 7 6002 5786 5582 53895206 5033 4868 4712 4564 4423 428 4150 4039 3922 3812 370636053508 316 317 3242 36 6733 5.463 5210 5971 5741 5535 575 51 968 479 4639 44R) 43444207 4078 3954 337 3726 3619 357814211129 9 7435 7108 6 802 6515 6247 5995 579 5537 5328 512 49.46 4772 4607 4451 4303 413 4031390537853673356 1453 90 8 7722 7350 1024 6710 6,418554559 5650 5426 526 509 48314659 4494 43394924054 1923 179916223571 11 75030577 7.499 7189 6805 6495 5207 5938 5675453 5234 5020 4835 4655 446 427 417 40353902776 365 938583 384 7943 7516 7161 6.814 6492 6194 597 5660 5421 5197 498 479 4611 46942784127 385 3851 1725 9999 57 358 7904 747 73 6750 54246122 584255253425118 4910 475 4533432 420114051927 563 9899995 8765 824778673676582 6 628 6302 6002 5724 55 5229 5008 402 4611 402 426541992 14 11718 ORD 9702 559 806176067191 61662 6 SM 5.575 5324 5092764675461945) 200359 11652 WIR 06 94 HS 83724 719 69765000 6.265 595655 405 5.24981056 41524590 216112410477 9763 9122 8544 30227549712067296047 57495475 5222 4.0 4775 4576 431 421940502 60X200 27201 702 72000 75.18 55773 som 412 449 420 2016 3366040 8305 79 76 5550 SMY 555356704804610425477912 13.0024214701049 912857 2025 525 5929 52 553 51014370 4657446042194956 2 UM 11 00 407 79 06531256655548914675 476 47 41 451 200 201 202 727645717060056965410 599 400 401970 MS1122 SORUM 700454524 24 15200 M2 355455240120 25 1522165759140772806097 55.605594721 412 475 5975 611575200450 33059237 7700551552154545190 0416769025224970209571572 51 40361051055257 30 1200220001550290 SL ML Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of Project x. (Negative amount should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value Raid 2 Required 1 Required 2 Required 3 Compute the net present value of Project Y. (Negative amount should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount Net present value De Required 3 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and managerial accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st edition

111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114

Students also viewed these Accounting questions