Required information {The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $ (25,000) Initial investment Amount of net cash return $(25,000) 5,000 5,000 5,000 5,000 5,000 5,000 $ 1,081 10,000 10,000 10,000 6,000 ? $ (50,000) 16,000 16,000 16,000 16,000 16,000 0 $ ? $ (50,000) 5,000 10,000 15,000 20,000 25,000 $ (100,000) 30,000 30,000 15,000 15,000 15,000 15,000 $ 2,942 6-10 0 Per year NPV (14% discount rate) Present value ratio $ $ 7 1.04 Required: a. Calculate the net present value of projects B, C, and D, using 14% as the cost of capital for Scott Inc. (Negative amounts should be indicated by a minus sign.) Project Net Present Value Required information [The following information applies to the questions displayed below.) The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $ (25,000) Initial investment Amount of net cash return UWNHO $(25,000) 5,000 5,000 5,000 5,000 $(50,000) 16,000 16,000 16,000 16,000 16,000 $(50,000) 5,000 10,000 15,000 20,000 25,000 0 ? $(100,000) 30,000 30,000 15,000 15,000 15,000 15,000 $ 2,942 5,000 10,000 10,000 10,000 6,000 ? ? 6-10 Per year NPV (14% discount rate) Present value ratio 5,000 1,081 1.04 $ $ b. Calculate the present value ratio for projects B, C, D, and E. (Round your answers to 2 decimal places.) Project Present Value Ratio Required information [The following information applies to the questions displayed below. The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $(25,000) Initial investment Amount of net cash return OWNPO $(25,000) 5,000 5,000 5,000 5,000 5,000 5,000 $ 1,081 1.04 $(50,000) 16,000 16,000 16,000 16,000 16,000 D $(50,000) 5,000 10,000 15,000 20,000 25,000 10,000 10,000 10,000 6,000 ? ? $(100,000) 30,000 30,000 15,000 15,000 15,000 15,000 $ 2,942 Per year NPV (14% discount rate) Present value ratio $ $ ? $ ? c-2. $150,000 is available for investment? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Project A Project B Project C Project D Project E Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) $ (25,000) Initial investment Amount of net cash return A $(25,000) 5,000 5,000 5,000 5,000 5,000 5,000 $ 1,081 1.04 $(50,000) 16,000 16,000 16,000 16,000 16,000 10,000 10,000 10,000 6,000 ?_ ? D $(50,000) 5,000 10,000 15,000 20,000 25,000 0 ?_ $(100,000) 30,000 30,000 15,000 15,000 15,000 15,000 $ 2,942 6-10 Per year NPV (14% discount rate) Present value ratio $ $ c-3. $250,000 is available for investment? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 7 Project A 7 Project B Project C 7 Project D Project E
