Please find questions below, and please answer them as best you can.
Problem 10.14 Champlain Corp. management is investigating two computer systems. The Alpha 3300 costs $2,341,225 and will generate cost savings of $1,009,125 in each of the next ve years. The Beta 2100 system costs $2,012,500 and will produce cost savings of $343,250 in the rst three years and then $2 million for the next two years. If the company's discount rate for similar projects is 14- percent: What is the NW for the two systems? (Enter negative amounts using negative sign, e.g. 45.25. Do not round discount factors. Round other intermediate caicuiaons and nai answer to 0 decimai planes, e.g. L525.) l'liP'ur of Alpha system $ l'ilP'ur of Beta system $ which one should be chosen based on the NW? Champlain should chose the :3 system. Problem 10. 18 Creative Solutions, Inc., has just invested $4,191,200 in new equipment. The rm uses a payback period criteria of not accepting anyr project that taka more than Four years to recover its cosm. Management anticipates cash ows of $801,300, $162,400, $019,600, $1,699,000, $2,080,900, and $2,064,000 over the next six years. {Round answer to 2 decimal graces, 2.9. 15.25.) What is the payback perlod of this Investment? Payback period l5 years. Should Creative Solutions, Inc. go ahead with this project? The rm :3 the project. Problem 10.21 Nugent Communlcatjon Corp. is investing $9,514,210\") In new technologies. The company's management expects slgnicant benets in the first three years after installation (as can be seen by the followlng cash flows}, and smaller constant benets in each of the next four years. Year 1 2 3 4-? Gash Flow. $2,104,000 $4,838,000 $2,?68,100 $1,057,500 What is the discounted payback period for the project assuming a dlscount rate of 10 percent? (Round answer to 2 decimal places, e.g. 15.25. Do not round discount teeters. If discounted payback period exceeds life of the project, enter 0 for the answer.) The discounted payback period for the project ls years. Problem 10.22 Morningslde Bakeries recently purchased equipment at a cost of $621,500. Management expects the equipment to generate cash flows of $265,250 In each of the next four years. The cast of capital Is 14 percent. What Is the MIRR for this project? (Round answer to 1 decimal places, 2.9. 15.2%.] m :% Problem 10.23 Management of Sycamore Home Furnishings is considering acquirlng a newI machine that can create customized window treatments. The equipment will cost $266,550 and will generate cash ows of $70,?50 over each of the next slx years. If the cast of capital is 15 percent, what is the MIRR on thls project? (Do not mend intermediate caicuiations. Round answer to 2 decimal pieces, e.g. 15.25%.) HIRR 9i: Problem 10.24 Management of Great Fllghts, Inc., an avlation firm, is considerlng purchasing three aircraft for a total cost of $16?,362,039. The companyr would lease the alrcra to an airline. Cash ows from the proposed leases are shown in the following table. 1-4 $22,335,000 5-? 30,050,000 3-10 01,140,000 what is the IRR of this project? (Round Intermediate calculations to a decimal places, e.g. 1,251 and nal answer to 2 decimal places, 15.9. 15.25%.) The 1mm, prawns : as Problem 10.23 Compute the IRR for the following project cash ows: a. An initial outlay of $2,323,028 Followed by annual cash flows of $539,290 for the next eight years. (Round Intermediate calculations to D declmal places, e.g. 1,251 and final answer to 2 declmal places, e.g. 15.25%.) mammals: q... II. An initial investment of $23,340 followed by annual cash flows of $2,870 For the next ve years. (Round lntermedlate calculaons to D declmal places, e.g. 1,251 and nal answer to 2 declmal places, e.g. 15.25%.) New\" :9\" 1:. An initial outlay of $12,932 followed by annual cash flows of $2,230 for the next seven years. {Round lntermedlale calculatlons to E declmal places, e.g. 1,251 and nal answer to 2 declmal' places, e.g. 15.25%.) New\" :*
