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Mand Ya The most of the g Present Vahio.of $1.tabs Present Velen af Annuity at $1 table Euture Value of $1 table Exture Value of

Mand Ya The most of the g Present Vahio.of $1.tabs Present Velen af Annuity at $1 table Euture Value of $1 table Exture Value of Annuity of $1 table Read the requirements Requirement 1. Calculate the net present value of this equipment. (Use factors to three decimal places, XXXXX, and round all currency calculations to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value) The net present value of this equipment is Requirement 2. Calculate the accrual accounting rate of return (MARR) based on net initial investment for this equipment (Round interim calculations to the nearest whole dolar Round the rate to tem declinal places Xxx The accrual accounting cate of return based on net initial investment for thisquipment Requirement 3. Should Eva accept the project W Eva accept the project if her bonus depends on achieving an accrual accounting rate of turn of 14%? How can this conflict be resolved? the 14% threshold above which Eva as a bonus Era the required 14% rate of t Eve accept the project if she is being evaluated based on the accrual accounting rate of retum because the project project if she wants to act in the femi's best interest because the NPV implying that, based on the cash flows generated the project The actual accounting rate of retum based on not al investment for this epipement is Regiment 3. Should Eve accapt the project? Ws Eva accept the project if her bonus dipends in achieving an anal ang ate fun of 1% at be accept the project if she is being evaluated based on the anal accounting rate of retum, because the project Exa project if she wants to act in the Sims best interest because the NPV Exwvill long project to avoid a poor at based on the state her part To the confer the be Eva Ichta, a manager for the Stone Mandaching Company has the opportunity to pad the p 15,000 and will be depreciated using rghted The machinery i 14% on in Eva as anal nit cash operating sang nt Stune's fac val at the of years The h this gipient of $130 000 and working capital at the begiving of the to Ent Vale at $1 Valheet of East Area Tumitest Eva Ichton, a manager for the Stone Manufacturing Company, has the opportunity to upgrad $495,000 and will be depreciated using the straight-line method. The machinery is expected 14% on investments. Eva estimates annual net cash operating savings for this equipment of end Stone's tax rate is 30% Present Value of $1.table Present Value of Annuity of $1 table Future Value of $1 table Read the requirements Requirement 1. Calculate the net present value of this equipment. (Use factors to three decim net present value) The net present value of this equipment is Requirement 2. Calculate the accrual accounting rate of return (AARR) based on net initial inves The accrual accounting rate of return based on net initial investment for this equipment is Requirement 3. Should Eva accept the project? Will Eva accept the project if her bonus depends Eva accept the project if she is being evaluated based on the accrual accounting rate of project if she wants to act in the firm's best interest because the NPV is Type here to search 2 0 3 4 O implying that, 7 LLI E D X C R LL T V G Q A Z W S Final Exam he Stone Mandfacturing Company, has the opportunity to upgrade the equipment in the Midwest division by replacing eciated using the straight line method. The machinery is expected to have a useful tile of 9 years and no residual valu stimates annual net cash operating savings for this equipment of $130,000 before taxes and an investment in working Present Value of Annuity of $1 sable Estee Vale of 1 table Extern Value of Act of 1 the net present value of this equipment (Use factors to three decimal places XXXXX, and round all currency calcitliche the accrual accounting rate of retum (AARR) based on net initial investment for this equipment (Round terin calculati rule of return based on net initial if this Era i accept the project? W Eva accept the project if her bonus depends on achieving an accrual accounting rate of m he project if she is being evaluated based on the accrual accounting rate of retum because the project ad in the Sm's best interest because the NPV ere to search 4 40 implying that, based on the cash flows generated the project 4 hp 144 9 0 E R T D F G H K C V B N M ortunity to upgrade the equipment in the Midwest division by replacing and upgrading some of its machinery. The cost- nery is expected to have a useful Be of 9 years and no residual value at the end of the 9 years. The firm requires a mi this equipment of $130,000 before taxes and an investment in working capital at the beginning of the project of $5,000 Value of $1.table Exture Value of Acnulty.of $1.table factors to three decimal placem, X.XOOX, and round all currency calculations to the nearest whole dollar Use a minus sign c based on net initial investment for this equipment (Round interim calculations to the nearest whole dofler Round the rate this equipment is roject if her bonus depends on achieving an accrual accounting rate of return of 14%7 How can this conflict be resolved? accal accounting rate of return, because the project the 34% threshold above which Eva eams a bonus t the fimis required 14% rate aft h implying that, based on the cash flows generated, the project Time Remain F 6 7 8 6 O 79 Partly sunny Y 0 P C 1 H K L > N M ctr est division by replacing and upgrading some of its machinery. The cost of the upgraded machinery will be irs and no residual value at the end of the 9 years. The firm requires a minimum after tax rate of return of an investment in working capital at the beginning of the project of $5,000 that will be returned at the project's $1.table ound all currency calculations to the nearest whole dollar. Use a minus sign or parentheses for a negative ment (Round interim calculations to the nearest whole dolar. Round the rate to two decimal places, XXX%) accual accounting rate of return of 14%? How can this conflict be resolved? the project The 14% threshold above which Eva sams a bonus. Eva accapt the sh flows generated, the project the 's required 14% rate of retum hp 7 L P ctri L Time Remaining: 01 03.12 Next 1039 AM D 79F Partly sunny . 7 8 9 T 27 40 P pouse 7 shift 9 S 24

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