LO2,8 ( M12-15. NPV and IRR: Equal Annual Net Cash Inflows Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of S30,723, has predicted cash inflows of $5,000 per year for 10 years, and has no salvage value. Required a. Using a discount rate of 8%, determine the net present value of the investment proposal. b. Determine the proposal's intemal rate of return. (Refer to Appendix 12B if you use the table approach.) c. What discount rate would produce a net present value of zero? P12-28. Home Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present LO2, 3, Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal Initial investment. $100,000 $100,000 $100,000 Cash flow from operations Year 1.. 60,000 25,000 110,000 Year 2 40,000 40,000 Year 3 35,000 70,000 Disinvestment Lito (years) 3 years 3 years 1 year 0 Required a. Rank these investment proposals using the payback period, the accounting rate of return on initial investment and the net present value criteria. Assume that the organization's cost of capital is 12% and that all investments are in depreciable assets. Round calculations to four decimal places. b. Explain the difference in rankings. Which investment would you recommend? Complete the following questions out of the textbook and upload answers here (Excel file, word doc or picture of handwritten work) M12-15a (only complete part a...calculate NPV and explain accept/reject) E12-20a (only complete part a....calculate NPV and explain accept/reject) P12-28....Use the information provided for these 3 projects to complete the following: 1- calculate the NPV of each individual proposal (A-C) 2- calculate the Pl of each individual proposal (A- C) 3- Determine which proposal is best and explain your answer P12-28. Home Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present LO2, 3, Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal Initial investment. $100,000 $100,000 $100,000 Cash flow from operations Year 1.. 60,000 25,000 110,000 Year 2 40,000 40,000 Year 3 35,000 70,000 Disinvestment Lito (years) 3 years 3 years 1 year 0 Required a. Rank these investment proposals using the payback period, the accounting rate of return on initial investment and the net present value criteria. Assume that the organization's cost of capital is 12% and that all investments are in depreciable assets. Round calculations to four decimal places. b. Explain the difference in rankings. Which investment would you recommend? LO2,8 E12-20. NPV and IRR: Unequal Annual Net Cash Inflows Goodrich Petroleum Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has Corporation (GDP) the following predicted cash flows: Initial investment.. $(160,000) Operation MBO Year 1 42,000 Year 2 95,000 Year 3 65,000 Salvage 0 w M12-15a (only complete part a...calculate NPV and explain accept/reject) E12-20a (only complete part a....calculate NPV and explain accept/reject) P12-28....Use the information provided for these 3 projects to complete the following: 1- calculate the NPV of each individual proposal (A-C) 2- calculate the Pl of each individual proposal (A- C) 3- Determine which proposal is best and explain your answer Puy LO2, 8 Hormowany MBC a discount rate of 16% M12-15. NPV and IRR: Equal Annual Net Cash Inflows Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of $30,723. has predicted cash inflows of $5.000 per year for 10 years, and has no salvage value. Required a. Using a discount rate of 8%, determine the net present value of the investment proposal. b. Determine the proposal's intemal rate of return. (Refer to Appendix 12B if you use the table approach.) c. What discount rate would produce a net present value of zero? M12-16. NPV and IRR: Equal Annual Net Cash Inflows Assume Spotify is evaluating a capital expenditure proposal that requires an initial investment of LO2,8 Spotify Technology LO2,8 E12-20. NPV and IRR: Unequal Annual Net Cash Inflows Goodrich Petroleum Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has Corporation the following predicted cash flows: (GDP) Initial investment S(160,000) Operation MBC Year 1 42.000 Year 2 95,000 Year 3 65.000 Salvage.. 0 P12-28. Home Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present LO2, 3, Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal Initial investment. $100,000 $100,000 $100,000 Cash flow from operations Year 1.. 60,000 25,000 110,000 Year 2 40,000 40,000 Year 3 35,000 70,000 Disinvestment Lito (years) 3 years 3 years 1 year 0 Required a. Rank these investment proposals using the payback period, the accounting rate of return on initial investment and the net present value criteria. Assume that the organization's cost of capital is 12% and that all investments are in depreciable assets. Round calculations to four decimal places. b. Explain the difference in rankings. Which investment would you recommend
