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please help me fill out a-d with this problem, thank you! Ursus, Incorporated, is considering a project that would have a five-year life and would
please help me fill out a-d with this problem, thank you!
Ursus, Incorporated, is considering a project that would have a five-year life and would require a $2400,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore Income taxes Sales $ 3,500,000 Variable expenses 2,100, Contribution margin 1,400,000 Fixed expenses Fixed out-of-pocket cash expenses $ 600,eee Depreciation 480, Bee 1,060, Bee Net operating income $ 320, eee Click here to view Exhibit 148.1 and Exhibit 143-2. to determine the appropriate discount factor(s) using the tables provided All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 14% Required: a compute the project's net present value (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b.Compute the project's internal rate of return (Round your final answer to the nearest whole percent.) c. Compute the project's payback period (Round your answer to 2 decimal place.) d. Compute the project's simple rate of return (Round your final answer to the nearest whole percent.) a. Net present value b Internal rate of retum c Payback period d Simple rate of rotum yours Step by Step Solution
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