Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need #3 Payback, Accounting late of Return, Net Present Value Internal Rate of Retur Pillow the format shown in Ehibit 12.1 and 1262 you complete

image text in transcribed
need #3
image text in transcribed
Payback, Accounting late of Return, Net Present Value Internal Rate of Retur Pillow the format shown in Ehibit 12.1 and 1262 you complete the went below Hayock Company wants to buy a numerically controlled (NG) machine to be producing machine parts for manufacturers of tractors. The styrer 14,000. The part wit years with no expected salge value. The spected attentax cashed with the project Year Cash Expenses 3.360.000 1 Cash Revenues 5510,000 500,000 510,000 $10,000 St0,000 300.000 000 300.000 1. Compute the back period for the Cound you to the decimal 2.56 years 2. Compute the Comments Rond the percentages on decimal dasan strat ne depreciation 19.1 3. Come the best ex. maroquired rate of retomo o present al cabos and your tower to the nearest donc 234,000 X 4. Compute the investments ERR Between 30 Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 123.1 and Exhibit 128.2 as you complete the requirements below. Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $384,000. The Nc equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $510,000 $360,000 2 360,000 $10,000 510,000 3 360,000 4 510,000 510,000 360,000 360,000 5 Required: 1. Compute the payback period for the NC equipment Round your answer to two decimal places ya 2. Compute the NC avlaments ARK round the percentage to one decimal place. Assume straight line depreciation 3. Compute the investment's NPV, assuming a required rate o return of 10% Round presentar calculations and your final answer to the nearest dollar, 4. Compute the investment's ERR

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

Funding And Financing Transport Infrastructure

Authors: Athena Roumboutsos, Hans Voordijk, Aristeidis Pantelias

1st Edition

0367735792, 9780367735791

More Books

Students also viewed these Accounting questions