please put in the same form as the pictures thank you.
Project 2: The same furniture maker has another opportunity presented to expand their current factory space to increase production and ultimately be able to reach new markets with their expanded manufacturing capacity. The company has determined the following information and assumptions for this new expansion idea: 1) The capital investment for this project will cost the company $500,000 Depreciation will be calculated over a 5 year life with no salvage value. 2) The projected annual net income for each of the five years are as follows: Year 1: Year 2: Year 3: Year 4: Year 5: Total 45,000 52,000 56,000 61,000 63,000 277,000 Instructions: Using the template below, a) compute the annual rate of getum b) prepare a table of the net annual cash flow and cumulative net cash flow c) compute the payback period, d) compute the NPV using the determined 14% discount sate. Should the proposable be accepted using this discount rotel e) compare the results from Part 1 to determine which project is more appealing Compute the payback period (Again, refer to M13 Discussion Problem!) Compute the NPV using the discount rate of 14% and the NPV Excel formula. You should list out your inputs in the provided spaces. Present value of cash inflows: Cashflow Present Value $145,000.00 $ 127,194.00 152000.00 116964.00 156000.00 105300.00 161000.00 95328.10 163000.00 84662.20 $ 529,448.00 1 Present value of cash outflows: 500,000 Net present value 29.448 Is this proposal acceptable using this discount rate? Respond Yes or No. Yes 2 Compare results from Project 2 above to those of Project 1 by marking an "X" in the box of the Project that is more appealing for each item below. Note: for the NPV comparison, use the results from Project 1 using the 14% discount rate, letter Annual Rate of Return Net Present Value Cash Payback Project 1 Project 2 1.5 1.5 1.5 Based on the above, which project should the companys No Enter Project 1 or 2 Project 2: The same furniture maker has another opportunity presented to expand their current factory space to increase production and ultimately be able to reach new markets with their expanded manufacturing capacity. The company has determined the following information and assumptions for this new expansion idea: 1) The capital investment for this project will cost the company $500,000 Depreciation will be calculated over a 5 year life with no salvage value. 2) The projected annual net income for each of the five years are as follows: Year 1: Year 2: Year 3: Year 4: Year 5: Total 45,000 52,000 56,000 61,000 63,000 277,000 Instructions: Using the template below, a) compute the annual rate of getum b) prepare a table of the net annual cash flow and cumulative net cash flow c) compute the payback period, d) compute the NPV using the determined 14% discount sate. Should the proposable be accepted using this discount rotel e) compare the results from Part 1 to determine which project is more appealing Compute the payback period (Again, refer to M13 Discussion Problem!) Compute the NPV using the discount rate of 14% and the NPV Excel formula. You should list out your inputs in the provided spaces. Present value of cash inflows: Cashflow Present Value $145,000.00 $ 127,194.00 152000.00 116964.00 156000.00 105300.00 161000.00 95328.10 163000.00 84662.20 $ 529,448.00 1 Present value of cash outflows: 500,000 Net present value 29.448 Is this proposal acceptable using this discount rate? Respond Yes or No. Yes 2 Compare results from Project 2 above to those of Project 1 by marking an "X" in the box of the Project that is more appealing for each item below. Note: for the NPV comparison, use the results from Project 1 using the 14% discount rate, letter Annual Rate of Return Net Present Value Cash Payback Project 1 Project 2 1.5 1.5 1.5 Based on the above, which project should the companys No Enter Project 1 or 2
