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Please take your time to answer this correctly. This is my last question for this period and I've posted this question twice and received the
Please take your time to answer this correctly. This is my last question for this period and I've posted this question twice and received the wrong answers.
Vernon Modems, Inc. (VMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. VMI has established a desired rate of return of 14 percent for these investment opportunities. (PV of $1 and PVA of S1) (Use approprlate factor(s) from the tables provided.) Opportunity Investment term Expected cash inflow Cost of investment 4 years 5 years years 5 years $3,000 7,100 7,400 3,000 $8,000 $21,300 $17,200 $10,300 Requlred a) Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example b) Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator Compute the net present value of each investment opportunity and record your answers in the following table.The results for Investment Opportunity A have been recorded in the table as an example. (Negative amounts should indicated by minus sign. Round "Present value factor" to 6 decimal places. Round "Present value of cash flows and Net present value" to 2 decimal places.) 3,000 $ 7,400 Cash inflow Times present value factor Present value of cash flows Minus cost of investment Net present value 7,100S 3,000 2.913712 8.741.14 (8,000.00)21,300.0017,200.00)(10,300.00) 741.14 Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator. (Negative amounts should indicated by minus sign. Round your answers to 2 decimal places.) Show lessA Net present value Intemal rate of return S 741.14 18.45%Step by Step Solution
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