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Please help me fill this chart out, I have been using the correct formulas but keep getting the numbers incorrect therfore my problem incorrect. Ursus,
Please help me fill this chart out, I have been using the correct formulas but keep getting the numbers incorrect therfore my problem incorrect.
Ursus, Incorporated, is considering a project that would have a five-year life and would require a $2,400,000 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 2,1ee, eee Contribution margin 1,400,000 Fixed expenses: Fixed out-of-pocket cash expenses $ 600,eee Depreciation 480,000 1, e80,000 Net operating income $ 320,000 Click here to view Exhibit 143-1 and Exhibit 148-2, 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 149 Required: * 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.) 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 Internal rate of retum cPayback period d Simple rate of return yoors Step by Step Solution
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