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Please answer asap. 31. Tressor Company is considering a Eryear project, The company plans to invest $90'OUO how, and it forecasLs cash ows for each
Please answer asap.
31.
Tressor Company is considering a Eryear project, The company plans to invest $90'OUO how, and it forecasLs cash ows for each year of $27,000, The company requires that investments yield a discount rate of at least 14% Selected factors for a present Value of an annuity of 35] for ve years are Shown below Interest Present value 0+ an annuity of $1 factor rate {or yeah 5 19% 3 . 7968 12% 3 . 6648 14% 3 . 4331 Calculate the internal rate of return to determine whether l1 should accept this project Multiple Choice The project should be rejected because rtwrll not earn exactly 14% The project will earn more than 12% but less than 14% At a hurdle rate M1453, the projectshould he rejected The project should be accepted because ltwlll earn more than 'li. The project should be rejected because rtwrll earn less than 14%. 0000 The project should be accepted because ltwlll earn more than 10% \fPoe Company is tonsldering the purchase at new equipment CDE1ll'ig $80,500 The prujected net (ash flows are $35,500 fur the first two years and $30,500 for years three and fdur, The revenue IS td he received at the end at each year The machine has a useful life of4 years and no salvage Value Pee requires a 109:: return on its investments The present value ufan annuity of $1 and present value Dian annuity nf$1fnr different periods is presented below Cnmpute the net present value of the machine [rounded to the nearest whole dollar). Present Value of $1 at Present Value 01' an Periods 18% Annuity of $1 at 19% 1 9.9391 3.9691 2 9.8264 1.7355 3 9.7514 2.4869 4 9.6836 3.1699 Multiple Choice $5,301, 324.859 M16316]. $16.8i6, $45,301], 00000 \fA company is considering the purchase ofa new piece of equipment for $91,000. It is expected to produce the following net cash ows. The payback period is: Year' 1 Year' 2 Year' 3 Year' 4 Year' 5 Net cash ows 3 36,533 3. 36,533 3 18,563 3 12,533 5 6,563 Multiple Choice 249 years. 298 yea r5. 332 ye rs. 3.44 ye ars. 4.44 ye Ears. OOOOOStep by Step Solution
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