Problems) of the Week SP 11 Serial Problem Business Solutions (Algo) LO P1, P2, P4 Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $344.160 and to have a six-year life and no salvage value. The equipment is expected to generate income of $14,239 and net cash flow of 576,720 in each year of Its six-year ife. Santana requires an 10% return on all investments. (PV of $1. FV of $1. PVA of S1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round Intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-o. Compute the payback period for this equipment 1-b. Compute the net present value for this equipment 1-c. Compute Internal rate of return for this equipment 2. ir Santana requires investments to have payback perlods of four years or less, should she invest in this equipment? 3. If Santana requires Investments to have at least an 10% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Reg LA Reg 18 Rad 10 Rag 2 and Compute the net present value for this equipment (Negative values must be entered as a negative number) PVA of $1, and FVA of $(Use appropriate factor(s) from the tables provided.) (Negative net present values should be Indicated with a minus sign. Do not round Intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment 1-b. Compute the net present value for this equipment. 1-c. Compute Internal rate of return for this equipment. 2. ir Santana requires Investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires Investments to have at least an 10% Internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 10 Req 2 and 3 Compute the payback period for this equipment. Numerator Initial investment 5 Payback Period Denominator Annual net cash flow $ Payback period 4.40 years 344.100 70.720 Reg 13 > DOCK period for this equipment. 1-b. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment. 2. If Santana requires Investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires Investments to have at least an 10% Internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 Reg 2 and 3 Compute the net present value for this equipment. (Negative values must be entered as a negative number.) Net Cash Flows 70.720 Present Value of Annuity at 10% Present Value of Net Cash Flows $ Years 1-0 initial investment Net present value Required: 1-0. Compute the payback period for this equipment 1-5. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment. 2. 1 Santana requires Investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires Investments to have at least an 10% Internal rate of return, should she Invest in this equipment? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 2 and 3 Compute internal rate of return for this equipment. Present Value Factor Numerator Denominator Present Value Factor 0 Periods ) Internal Rate of Return Reg 18 Req 2 and 3) ayUack periods of four years or less, should she invest in this equipment? 3. If Santana requires Investments to have at least an 10% Internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 Reg 1C Reg 2 and 3 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? 2. Santana requires investments to have payback periods of four years or less should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return should she invest in this equipment?
