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please answer my questions. Instructions Lovecraft Inc. is considering three different investment proposals. They will invest cash from their accululated free cash flow and thus,
please answer my questions.
Instructions Lovecraft Inc. is considering three different investment proposals. They will invest cash from their accululated free cash flow and thus, will not need to borrow. Lovecraft's hurdle rate for investments is 125 Calculate the payback period, ARR, NPV, and IRR for each of the proposals. Proposal 1 Malaysia call center Cost 10,000,000.00 Estimated useful life 20 years Estimated annual cash flow 1,200,000.00 Estimated annual net income 1,000,000.00 Estimated salvage value 200,000.00 Proposal 2: Mexico maquilladora Cost 10,000,000.00 Estimated useful life 18 years Estimated annual cash flow 1.500,000.00 Estimated annual net income 1,350,000.00 Estimated salvage value 500,000.00 Proposal 3: Acquisition of a competitor's potent Cost 10,000,000.00 Estimated useful life 15 years Estimated annual cash flow 1,600,000.00 Estimated annual net income 1,500,000.00 Estimated salvage value 15 Homeworks ca Com w Prop Mai Cast of Cab co Cost Per 15 Multi - WWW ir 311 Home poca Milo C C Puch Homewaris Malawi IM Instructions Lovecraft Inc. is considering three different investment proposals. They will invest cash from their accululated free cash flow and thus, will not need to borrow. Lovecraft's hurdle rate for investments is 125 Calculate the payback period, ARR, NPV, and IRR for each of the proposals. Proposal 1 Malaysia call center Cost 10,000,000.00 Estimated useful life 20 years Estimated annual cash flow 1,200,000.00 Estimated annual net income 1,000,000.00 Estimated salvage value 200,000.00 Proposal 2: Mexico maquilladora Cost 10,000,000.00 Estimated useful life 18 years Estimated annual cash flow 1.500,000.00 Estimated annual net income 1,350,000.00 Estimated salvage value 500,000.00 Proposal 3: Acquisition of a competitor's potent Cost 10,000,000.00 Estimated useful life 15 years Estimated annual cash flow 1,600,000.00 Estimated annual net income 1,500,000.00 Estimated salvage value 15 Homeworks ca Com w Prop Mai Cast of Cab co Cost Per 15 Multi - WWW ir 311 Home poca Milo C C Puch Homewaris Malawi IM Step by Step Solution
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