QS 11-24 (Algo) Break-even time LO A1 A $100,000 initial investment will generate the following present values of net cash flows. What is the breakeven time for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Round "Break even time" answer to 1 decimal place.) Year Initial investment 1. 2. 3. 4. 5. Cumulative Present Value of Present Value of Net Cash Flows Net Cash Flows $ (153,300) $ (153,300) 48,182 (105,118) 43,799 (61,319) 34,883 (26,436) 36,199 9,763 32,908 42,671 Break-even time years Exercise 11-4 (Algo) Payback period, unequal cash flows, and depreciation adjustment LO P1 A machine can be purchased for $90,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $18,000. Year 1 Year 2 Year 3 Year 4 Year 5 Income $6,000 $15,000 $36,000 $22,500 $60,000 Compute the machine's payback period. (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Cumulative Net Cash Net Cash Flow Flow $ (90,000) $ (90,000) $ Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 6,000 15,000 36,000 22,500 60,000 Payback period = Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $235,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 $71,000 Year 2 $50,000 Year 3 $79,000 Net cash flows Year 4 $157,000 Year 5 $44,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $235,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $71,000 Year 2 $50,000 Year 3 $79,000 Year 4 $157,000 Year 5 $44,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Complete this question by entering your answers in the tabs below. Required A Required B Should Gomez accept the investment? Should Gomez accept the investment? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the break-even time for this investment. (Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place.) Year Table factor Present Value of Cash Flows Cash inflow (outflow) (251,000) Cumulative Present Value of Cash Flows $ Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Break-even time = Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the net present value for this investment. Net present value
