Please help me with B, D-1, and E. All the information is there, these are screenshots of the problem posted online. Thank you.
The EVA for part B is also NOT 4857 for year 1, and 3672 for year 2. For D-1 PV of EVA is also NOT 3054. Lastly, the EVA for part E is also NOT 3080 for year 1, and 308 for year 2.
Ohio Building Products (OBP) is considering the launch of a new product which would require an initial investment in equipment of $30,800 (no investment in working capital is required). The forecast profits from the product are as follows: Net revenues Depreciation Pretax profit Tax at 35% Net profit Year 1 $23,337 13,860 9,477 1,990 $7,487 Year 2 $22,152 16,940 5,212 1,095 $4,117 No cash flows are forecast after year 2, and the equipment will have no salvage value. The cost of capital is 10%. a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg a Reqb Req di Req d2 Reqe U-1 !- II- .-.--:--LI- MINU - ..-- a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg a Reqb Req d1 Req d2 Rege What is the project's NPV? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Project's NPV $ 4,201 Req a Reqb > a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Rega Reqb Req di Req d2 Rege Calculate the expected EVA and the return on investment in each of years 1 and 2. (Do not round intermediate calculations. Enter your ROI as a percent and round all answers to the nearest whole number.) Year 1 Year 2 EVA $ 4,407 X $ 2.132 x ROI 10 % 10 % a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg a Reqb Req di Reg d2 Rege Calculate the present value of the economic value added. (Do not round intermediate calculations. Round your answer to the nearest whole number) PV of EVA 4,863 X ( Reqb Req d2 > a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reqa Reqb Req di Req d2 Reqe What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? (Do not round intermediate calculations. Enter your ROI as a percent and round all answers to the nearest whole number.) Year 1 Year 2 EVA $ 2,080 x $ 1,310 X ROI 10 % 10% a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Rega Reqb Req di Req d2 Rege Calculate the expected EVA and the return on investment in each of years 1 and 2. (Do not round intermediate calculations. Enter your ROI as a percent and round all answers to the nearest whole number.) Year 1 Year 2 EVA $ 4,407 X $ 2.132 x ROI 10 % 10 % a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg a Reqb Req di Reg d2 Rege Calculate the present value of the economic value added. (Do not round intermediate calculations. Round your answer to the nearest whole number) PV of EVA 4,863 X ( Reqb Req d2 > a. What is the project's NPV? b. Calculate the expected EVA and the return on investment in each of years 1 and 2. d-1. Calculate the present value of the economic value added. d-2. How does the PV of EVA compare to the project NPV? e. What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reqa Reqb Req di Req d2 Reqe What would be the EVA and return on investment if OBP chooses instead to depreciate the investment straight line? (Do not round intermediate calculations. Enter your ROI as a percent and round all answers to the nearest whole number.) Year 1 Year 2 EVA $ 2,080 x $ 1,310 X ROI 10 % 10%
