Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NLTE 75% 3:55 PM coursehero.com/qa/atta + 10 .. . GWH Publications Inc. is considering two new magazine products. The estimated net cash flows from each

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
NLTE 75% 3:55 PM coursehero.com/qa/atta + 10 .. . GWH Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Year Primitive Camping Lakeside Fishing $164,000 $138,000 135,000 161,000 W N 116,000 111/000 105,000 77,000 33,000 66,000 Tota $553,000 $553,000 Present Value of $1 at Compound Interest Year 10% 12% 150%% 20% 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0:756 0.694 13 0.840 0.751 0.712 0.658 0.5,79 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0:507 0.432 0.335 7 0.665 0.513 0:452 0.376 10 279 X +OO .. NGLTE 75% 3:56 PM coursehero.com/qa/attz + 10 .. . 8 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Each product requires an investment of $299,000. A rate of 10% has been selected for the net present value analysis. Required: la. Compute the cash payback period for each project. Cash Payback Period Primitive Camping 2 years Lakeside Fishing 2 years 1b. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sign to indicate a negative net present value. Primitive Camping Lakeside Fishing Present value of net cash flow total Amount to be invested Net present value $ X +

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

The Structure Of Functions

Authors: Hans Triebel

1st Edition

3034805691, 9783034805698

More Books

Students also viewed these Mathematics questions