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please help solve Read Publishing is considering the purchase of a used printing press costing $84,200. The printing press would generate a net cash inflow

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  1. Read Publishing is considering the purchase of a used printing press costing $84,200. The printing press would generate a net cash inflow of $37,422 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows:

Cost of Capital

Period

8%

10%

12%

14%

16%

2

1.78

1.74

1.69

1.65

1.61

3

2.58

2.49

2.40

2.32

2.25

4

3.31

3.17

3.04

2.91

2.80

The investment?s net present value is:

  1. $ 5,480
  2. $ 19,200
  3. $ 76,800
  4. $ 8,981

  1. Read Publishing is considering the purchase of a used printing press costing $84,200. The printing press would generate a net cash inflow of $37,422 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows:

Cost of Capital

Period

8%

10%

12%

14%

16%

2

1.78

1.74

1.69

1.65

1.61

3

2.58

2.49

2.40

2.32

2.25

4

3.31

3.17

3.04

2.91

2.80

The investments internal rate of return (rounded to the nearest percent) is:

  1. 10%
  2. 16%
  3. 14%
  4. 12%
  5. Urbana Corporation is considering the purchase of a new machine costing $75,000. The machine would generate net cash inflows of $24,214 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Urbana?s cost of capital is 12 percent. Urbana uses straight-line depreciation. The investment?s accounting rate of return (rounded to three decimal points) on initial investment is:
  6. 12.285 percent
  7. 10.270 percent
  8. 30.545 percent
  9. 81.613 percent
  10. The investment?s payback period in years (rounded to two decimal points) is:
  11. 3.30
  12. 3.10
  13. 4.00
  14. 9.48
image text in transcribed 1. Read Publishing is considering the purchase of a used printing press costing $84,200. The printing press would generate a net cash inflow of $37,422 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows: Cost of Capital Period 8% 10% 12% 14% 16% 2 1.78 1.74 1.69 1.65 1.61 3 2.58 2.49 2.40 2.32 2.25 4 3.31 3.17 3.04 2.91 2.80 The investment's net present value is: A. B. C. D. $ 5,480 $ 19,200 $ 76,800 $ 8,981 2. Read Publishing is considering the purchase of a used printing press costing $84,200. The printing press would generate a net cash inflow of $37,422 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows: Cost of Capital Period 8% 10% 12% 14% 16% 2 1.78 1.74 1.69 1.65 1.61 3 2.58 2.49 2.40 2.32 2.25 4 3.31 3.17 3.04 2.91 2.80 The investments internal rate of return (rounded to the nearest percent) is: A. B. C. D. 10% 16% 14% 12% 3. Urbana Corporation is considering the purchase of a new machine costing $75,000. The machine would generate net cash inflows of $24,214 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Urbana's cost of capital is 12 percent. Urbana uses straight-line depreciation. The investment's accounting rate of return (rounded to three decimal points) on initial investment is: A. B. C. D. 12.285 percent 10.270 percent 30.545 percent 81.613 percent

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