Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the blank ones or the ones with an X And then help with this one too please Average Rate of Return Method, Net

Please answer the blank ones or the ones with an X

image text in transcribedimage text in transcribed

And then help with this one too please

image text in transcribed

Average Rate of Return Method, Net Present Value Method, and Analysis for a service company Present Value of $1 at Compound Interest Required: 1a. Compute the average rate of retum for each investment. If required, round your answer to one decimal place. Average Rate of Return 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments. The front-end loader has a net present value because cash flows occur in time compared to the greenhouse. Thus, if only one of the two projects can be accepted, the would be the more attractive. AmounttobeinvestedAnnualnetcashflows:Year1Year2Year3MaintenanceEquipment$8,000,0004,000,0003,500,0002,500,000RampFacilitics$20,000,00012,000,00010,000,0009,000,000ComputerNetwork$9,000,0006,000,0005,000,0004,000,000 \begin{tabular}{cccccc} \multicolumn{5}{c}{ Present Value of $1 at Compound Interest } \\ Year & 0% & 10% & 12% & 15% & 20% \\ \hline 1 & 0.943 & 0.909 & 0.893 & 0.870 & 0.833 \\ 2 & 0.890 & 0.826 & 0.797 & 0.756 & 0.694 \\ 3 & 0.840 & 0.751 & 0.712 & 0.658 & 0.579 \\ 4 & 0.792 & 0.653 & 0.636 & 0.572 & 0.422 \\ 5 & 0.747 & 0.621 & 0.567 & 0.497 & 0.402 \\ 5 & 0.705 & 0.564 & 0.507 & 0.432 & 0.335 \\ 7 & 0.665 & 0.513 & 0.452 & 0.376 & 0.279 \\ 8 & 0.627 & 0.467 & 0.404 & 0.327 & 0.233 \\ 9 & 0.592 & 0.424 & 0.361 & 0.284 & 0.194 \\ 10 & 0.558 & 0.386 & 0.322 & 0.247 & 0.162 \end{tabular} Required: to the nearest dollar

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

Environmental Health And Safety Audits A Compendium Of Thoughts And Trends

Authors: Lawrence B. Cahill

2nd Edition

1598889737, 978-1598889734

More Books

Students also viewed these Accounting questions