Question
Please answer them correctly. Here are short 3 problems. Please solve all 3 problems. I would really appreciate your effort. Thanks. 1). Sandhill Communication Corp.
Please answer them correctly. Here are short 3 problems. Please solve all 3 problems. I would really appreciate your effort. Thanks.
1). Sandhill Communication Corp. is investing $8,373,700 in new technologies. The companys management expects significant benefits in the first three years after installation (as can be seen by the following cash flows), and smaller constant benefits in each of the next four years.
Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values youve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)
Year | ||||||||
1 | 2 | 3 | 4-7 | |||||
Cash Flows | $2,020,000 | $4,090,000 | $2,972,100 | $1,033,500 |
What is the discounted payback period for the project assuming a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 15.25. If discounted payback period exceeds life of the project, enter 0 for the answer.)
The discounted payback period for the project is _______years. |
2). Management of Cullumber, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $166,023,819. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table.
Years | Cash Flow | |
14 | $20,855,000 | |
57 | 75,950,000 | |
810 | 94,550,000 |
What is the IRR of this project? (Round answer to 2 decimal places, e.g. 15.25%.)
The IRR of this project is _______% |
3). Ivanhoe Specialties just purchased inventory-management computer software at a cost of $1,449,950. Cost savings from the investment over the next six years will produce the following cash flow stream: $199,340, $304,240, $348,600, $524,250, $734,320, and $484,740. What is the payback period on this investment? (Round answer to 2 decimal places,e.g. 15.25.)
Payback Period is _______?
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