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Perez Modems, Inc. (PMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the

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Perez Modems, Inc. (PMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. PMI has established a desired rate of return of 20 percent for these investment opportunities. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Opportunity A C 5 years $4,600 $13,800 5 years $ 6,200 4 years $ 4,100 3 years $ 6,800 $14,400 Investment term Expected cash inflow Cost of investment $11,000 $20,400 Required a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each investment opportunity and record your answers in the following table.The results for Investment Opportunity A have been recorded in the table as an example. (Negative amounts should indicated by minus sign Round "Present value factor" to 6 decimal places. Round "Present value of cash flows and Net present value" to 2 decimal places.) Opportunity A D Cash inflow 6,200 4,100 4,600 S 6,800 Times present value factor 2.588735 Present value of cash flows 10,613.81 (13,800.00) (20,400.00) Minus cost of investment (11,000.00) (14,400.00) (386.19) Net present value Perez Modems, Inc. (PMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. PMI has established a desired rate of return of 20 percent for these investment opportunities. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Opportunity C 5 years 4 years 5 years 3 years Investment term $ 4,100 $11,000 $ 4,600 Expected cash inflow $6,800 $14,400 $6,200 $20,400 Cost of investment $13,800 Required a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator Complete this question by entering your answers in the tabs below. Required B Required A Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator. (Negative amounts should indicated by minus sign. Round your answers to 2 decimal places.) Show lessA Opportunity A B Net present value S (386.19) 18.14% Internal rate of return % Required A Required B

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