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Mac Company is considering investing in two different projects, Stout and Boise. The company requests our help analyzing accounting data to ensure it makes
Mac Company is considering investing in two different projects, Stout and Boise. The company requests our help analyzing accounting data to ensure it makes the right investment decision. The Tableau Dashboard is provided for our analysis. The company requires a 12% return on its investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial Investment per Project Stout Stout Initial Investment: $24,000 Boise Mac Company is considering investing in two different projects, Stout and Boise. The company requests our help analyzing accounting data to ensure it makes the right investment decision. The Tableau Dashboard is provided for our analysis. The company requires a 12% return on its investments. (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial Investment per Project Boise Stout Boise Initial Investment: $30,000 Stout Net Cash Flows per Project $8,000 Year 1 $4,000 Boise $8,000 Year 2 $9,000 $8,000 Year 3 $8,000 Year 4 $8,000 $20,000 $15,000 $10,000 $5,000 Net Cash Flows (Stout) Year 5 $13,000 $20,000 $18,000 $0 $0 $5,000 $10,000 $15,000 $20,000 Net Cash Flows (Boise) 1. Compute the net present value of each project. 2. Based on net present values, which project(s) should the company invest in? 3. Compute the profitability index for each project. If the company can select only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of each project. Stout Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Boise Year 1 Year 21 Year 3 Year 4 Year 5 Totals Initial investment Net present value Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows $ 0 $ 0 $ 0 $ 0 $ 0 $ Required 1 Required 2 > 1. Compute the net present value of each project. 2. Based on net present values, which project(s) should the company invest in? 3. Compute the profitability index for each project. If the company can select only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Based on net present values, which project(s) should the company invest in? Based on net present values, which project(s) should the company invest in? < Required 1 Required 3 > 1. Compute the net present value of each project. 2. Based on net present values, which project(s) should the company invest in? 3. Compute the profitability index for each project. If the company can select only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the profitability index for each project. If the company can select only one project, which should it choose on the basis of profitability index? Profitability Index Numerator: Denominator: Profitability index Stout Boise If the company can choose only one project, which should it choose? 0 0 < Required 2 Required 3>
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