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please correct my wrong answers in red, thanks Billy Brown, owner of Billy's Ice Cream On-the-Go, Is Investigating purchasing a new delivery van that would

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Billy Brown, owner of Billy's Ice Cream On-the-Go, Is Investigating purchasing a new delivery van that would contain a custom-built refrigeration unt. The van would cost $90,000, have an eight-year useful life, and generate cost savings of $15,000 per year compared to the van currently being used. Also, Billy estimates the new van would result in the sale of 2,000 more litres of Ice cream each year, which has a contribution margin of $1 per litre. (Ignore Income taxes.) Required: 1. What would be the total annual cash inflows associated with the new van for capital budgeting purposes? Answer is complete but not entirely correct. $ 24,300 bollow 2. Calculate the IRR promised by the new van. (Hint Use Microsoft Excel to calculate the discount factors) (Do not round Intermediate calculations and round your final answer to one decimal place.) Answer is complete and correct. Internatrate of 10.21% 3. Assume that in addition to the cash flows described above, the van will have a $10,000 salvage value at the end of eight years. Calculate the IRR. (Hint Use Microsoft Excel to calculate the discount factors)) (Do not round intermediate calculations and round your final answer to one decimal place.) Answer is complete but not entirely correct. Internal rate of 17.5% Jannsen Limited is contemplating Investing in solar panels to reduce its need to purchase electricity from its local hydro company. The panels are estimated to cost $2.000.000 and will have a 15-year useful life with no salvage value. The electricity cost savings are expected to be about $200,000 per year. Management expects there will be some intangible benefits arising from purchasing the solar panels such as increased goodwill among its younger customers who are, on average, environmentally conscious. This could lead to increased repeat business with these customers in the future Jannsen uses a discount rate of 10% when evaluating capital expenditures Required: 1. Calculate the net present value of the investment in solar panels. (Hint Use Microsoft Excel to calculate the discount factor(s)) (Do not round Intermediate calculations and round your final answer to the nearest dollar amount. Negative amount should be indicated by a minus sign.) Answer is complete and correct. Not present Value $ (478,764) 2. Approximately what would the Intangible benefits need to be each year to make it worthwhile to invest in the solar panels? (Round your answer to the nearest thousand of dollars.) Answer is complete but not entirely correct. Intangible benefits IS 563

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