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Please, I need help answering and solving questions 22-25 (showing the work). Thank you! 22. Consider a project that has an initial outlay of $1100.
Please, I need help answering and solving questions 22-25 (showing the work). Thank you!
22. Consider a project that has an initial outlay of $1100. The firm's cost of capital is 9%. The expected cash flows are: Year 1-$550 Year 2-$610 Year 3-$470 What is the net present value and payback period for the project? A) $241.06; 2.16 years B) $180.00; 2.48 years C) $391.06; 1.60 Years $280.94: 1.90 years 7 23. The Dammon Corp. has the following investment opportunities: Machine B $22.500) Inflows Machine C $35.500) Inflows year 1 S-0- year 2 30,000 year 3 5,000 year 4 20,000 Machine A s10.000) Inflows year 1 $6,000 year 2 3,000 year 3 3,000 year 4 -0- year 1 $12,000 7,500 year 2 year 3 1,500 year 4 1,500 Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose? AMachine A B Machine B C) Machine C D) Machine A&B 24. Martin Corporation currently sells widgets at a price of $11.00 per unit. Its variable cost is $6.50 per unit while fixed costs are $400,000. At what quantity sold will the firm breakeven? A) 44,444 units B 55,555 units C88,888 units D) 99,999 units 400 000 Cn-6.50)0 25. Cash flows that could be realized from the best alternative use of an owned asset are called A) incremental costs B) lost resale opportunities Copportunity costs D) sunk costsStep by Step Solution
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