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Posted on Sep 12, 2024

Net Present Value 2.402 3.037 A project has estimated annual net cash flows of $8,750 for nine years and is estimated to cost $50,000. Assume

Net Present Value 2.402 3.037 A project has estimated annual net cash flows of $8,750 for nine years and is estimated to cost $50,000. Assume a minimum acceptable rate of return of 12%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.9090.893 0.870 0.833 1.833 1.736 1.690 1926 1.528 2.673 2.487 2.283 2.106 3.465 3.170 2.855 4.212 3.791 3.353 4.355 3.785 5.582 4.868 4.160 6.210 5.335 4.968 3.83 6.802 5.759 5.328 4.772 4.031 10 7 .360 6.145 5.650 5.019 4.192 Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value. Net present value of the project (round to the nearest dollar) $ Present value index (rounded to two decimal places) 4.917 UCFederated Ide TUCF N orte CengageNOWV216 X C mere Rate Of Re C Net Present Connect - Class: B. WebCOMM 2.0 MyLab Math Per Netflix Hulu eBook Show Me How Calculator Internal Rate of Return A project is estimated to cost $175,904 and provide annual net cash flows of $42,000 for five Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.9090 .893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2,855 2.589 4.212 3.791 3.605 3.352 4.917 4.355 3.326 7 5.582 4.868 4,564 4.160 3.60 6.210 5.335 4.968 4.487 6.802 5.759 5.328 107.360 6.145 5.650 5.0194.192 Determine the internal rate of retu Annuity of $1 at Compound Interest table shown 2.991 Previous ry Bookmarks People Tab Window Help 9 1 % . a Sun May 3 8:27:29 PM C CanongeNOW2 C X Connect - Class: B. WebCOM 2.0 Mylab Mathi Per North HAU eBook Show Me How Calculator Net Present Value-Unequal Lives Project 1 requires an original investment of $67,00. The project will yield cash flows of $11,000 per year for 10 years, Project 2 has a calculated at present value of $14,000 over a eight-year life. Project I could be sold at the end of eight years for a price of $52,000 204 0.833 0.52 Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 0.943 0.909 0.893 0.870 0.890 0.826 0.797 0.756 0.840 0.751 0.712 0.658 0.792 0.683 0.572 0.747 0.621 0.567 0.497 6 0.705 0.564 0.507 0.432 0.665 0.513 0.452 0.376 0.627 0.467 0.404 0.327 0.361 0.284 0.558 0.386 0.322 0.247 0.636 0.592 0.424 Present Value of an Annuity of $1 at Compound Interest Year 69 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 Previous 2 more Check My Work uses remaining. View History Bookmarks People Tab Window Help 994% Sun May 3 8 27 42 PM . a CengageNOWV216 X Cimernal Rate O C Presentace + genow.com 2 Connect - Class: B. Web.COMW2.0 PMyLab Math Pear. N ectix H eBook Show Me How Calculator 10 0.558 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.352 2.991 4,917 4.355 4.111 3.784 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 107.360 6.145 5.650 5.019 4.192 a. Determine the net present value of Project 1 over a eight-year life with residual value, assuming a minimum rate of return of 10%. If required, round to the nearest dollar b. Which project provides the greatest net present value? Previous Check My Work 2 more Check My Work uses remaining Emall rructor Sive and East Submit Assignment for Grading