Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve it ryt i m sharing my factor table too Ivanhoe Company is considering a long-term investment project called ZIP. ZIP will require an

image text in transcribed

image text in transcribed

please solve it ryt i m sharing my factor table too

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Ivanhoe Company is considering a long-term investment project called ZIP. ZIP will require an investment of $134,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $80,800, and annual cash outflows would increase by $39,000. In addition, the company's required rate of return is 10% : Click here to view the factor table. (a) Calculate the net present value on this project. (If the answer is negative, use either a negative sign preceding the number eg. 5,275 or parentheses e.g. (5,275). For calculation purposes, use 5 decimal places a. displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Net present value $ Identify whether the project should be accepted or rejected. Identiry wnetner tne project snoula de acceptea or rejectea. The project should be (b) Calculate the internal rate of return on this project. (Round answer to 1 decimal place, e.g. 5.2\%) Internal rate of return Identify whether the project should be accepted or rejected. TABLE 1 Future Value of 1 (Future Value of a Single Sum) FVFn,i=(I+i)n (n) Present Value of 1 (Present Value of a Single Sum) PVFn,i=(1+i)n1=(1+i)n Future Value of an Ordinary Annuity of 1 FVFOAn,i=i(1+i)n1 Present Value of an Ordinary Annuity of 1 PVFOAn,i=i1(1+i)n1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Estimating

Authors: Rodney D. Stewart

2nd Edition

0471857076, 978-0471857075

More Books

Students also viewed these Accounting questions

Question

Preminet Preminet

Answered: 1 week ago

Question

Is there any dispute that this is the cause?

Answered: 1 week ago