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Please Help Answer these Finance Questions As Soon As Possible Problem 2 Problem 3 Problem 4 4 of 6 (3 complete) HW Score: 12.86%, 1.8

Please Help Answer these Finance Questions As Soon As Possible

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Problem 2

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Problem 3

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Problem 4

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4 of 6 (3 complete) HW Score: 12.86%, 1.8 of 14 pts Score: 0 of 3 pts P11-22 (similar to) Question Help (Payback and discounted payback period calculations) The Bar-None Manufacturing Co. manufactures fence panels used in cattle feed lots throughout the Midwest. Bar-None's management is considering three investment projects for next year but doesn't want to make any investment that requires more than three years to recover the firm's initial investment. The cash flows for the three projects (Project A, Project B, and Project C) are as follows: a. Given Bar-None's three-year payback period, which of the projects will qualify for acceptance? b. Rank the three projects using their payback period. Which project looks the best using this criterion? Do you agree with this ranking? Why or why not? c. If Bar-None uses a discount rate of 10.8 percent to analyze projects, what is the discounted payback period for each of the three projects? If the firm still maintains its three-year payback policy for the discounted payback, which projects should the firm undertake? a. Given the cash flow information in the table, the payback period of Project Ais years. (Round to two decimal places.) Data Table Year Project A $(1,050) 530 250 190 80 450 Project B $(9,800) 5,500 2,000 2,000 2,000 2,000 Project C $(5,300) 1,200 1,200 3,500 3,500 3,500 Print Done Dox and then click Check Answer. HW Score: 12.86%, 1.8 of 14 pts Score: 0 of 1 pt 3 of 6 (3 complete) X P11-20 (similar to) (Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Question Help Year ON Project Cash Flow (millions) $(160) 100 72 100 102 If the project's appropriate discount rate is 12 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) (Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $110,000 and will generate net cash inflows of $16,000 per year for 11 years. a. What is the project's NPV using a discount rate of 8 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 13 percent? Should the project be accepted? Why or why not? c. What is this project's internal rate of return? Should the project be accepted? Why or why not? a. If the discount rate is 8 percent, then the project's NPV is $ . (Round to the nearest dollar.) P11-4 (similar to) A Question Help O (Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two alternative configurations for the firm's new plasma cutter shop. The two alternatives, denoted A and B below, will perform the same task, but alternative A will cost $95,000 to purchase, while alternative B will cost only $55,000. Moreover, the two alternatives will have very different cash flows and useful lives. The after-tax costs for the two projects are as follows: a. Calculate each project's EAC, given a discount rate of 8 percent. b. Which of the alternatives do you think Barry should select? Why? a. Alternative A's EAC at a discount rate of 8% is $ I. (Round to the nearest cent.) Cost 0 Data Table Year Alternative A Alternative B $(55,000) (8,000) (8,000) (8,000) $(95,000) (18,000) (18,000) (18,000) (18,000) (18,000) (18,000) (18,000) Print Done 4 of 6 (3 complete) HW Score: 12.86%, 1.8 of 14 pts Score: 0 of 3 pts P11-22 (similar to) Question Help (Payback and discounted payback period calculations) The Bar-None Manufacturing Co. manufactures fence panels used in cattle feed lots throughout the Midwest. Bar-None's management is considering three investment projects for next year but doesn't want to make any investment that requires more than three years to recover the firm's initial investment. The cash flows for the three projects (Project A, Project B, and Project C) are as follows: a. Given Bar-None's three-year payback period, which of the projects will qualify for acceptance? b. Rank the three projects using their payback period. Which project looks the best using this criterion? Do you agree with this ranking? Why or why not? c. If Bar-None uses a discount rate of 10.8 percent to analyze projects, what is the discounted payback period for each of the three projects? If the firm still maintains its three-year payback policy for the discounted payback, which projects should the firm undertake? a. Given the cash flow information in the table, the payback period of Project Ais years. (Round to two decimal places.) Data Table Year Project A $(1,050) 530 250 190 80 450 Project B $(9,800) 5,500 2,000 2,000 2,000 2,000 Project C $(5,300) 1,200 1,200 3,500 3,500 3,500 Print Done Dox and then click Check Answer. HW Score: 12.86%, 1.8 of 14 pts Score: 0 of 1 pt 3 of 6 (3 complete) X P11-20 (similar to) (Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Question Help Year ON Project Cash Flow (millions) $(160) 100 72 100 102 If the project's appropriate discount rate is 12 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) (Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $110,000 and will generate net cash inflows of $16,000 per year for 11 years. a. What is the project's NPV using a discount rate of 8 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 13 percent? Should the project be accepted? Why or why not? c. What is this project's internal rate of return? Should the project be accepted? Why or why not? a. If the discount rate is 8 percent, then the project's NPV is $ . (Round to the nearest dollar.) P11-4 (similar to) A Question Help O (Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two alternative configurations for the firm's new plasma cutter shop. The two alternatives, denoted A and B below, will perform the same task, but alternative A will cost $95,000 to purchase, while alternative B will cost only $55,000. Moreover, the two alternatives will have very different cash flows and useful lives. The after-tax costs for the two projects are as follows: a. Calculate each project's EAC, given a discount rate of 8 percent. b. Which of the alternatives do you think Barry should select? Why? a. Alternative A's EAC at a discount rate of 8% is $ I. (Round to the nearest cent.) Cost 0 Data Table Year Alternative A Alternative B $(55,000) (8,000) (8,000) (8,000) $(95,000) (18,000) (18,000) (18,000) (18,000) (18,000) (18,000) (18,000) Print Done

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