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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.

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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) $ (75,000) Initial investment Amount of net cash return mtin $ (68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 36,000 36,000 36,000 21,000 $ (154,000) 57,000 57,000 57,000 57,000 57,000 $ (172,000) 17,200 34,400 51,600 68,800 86,000 $ (344,000) 105,000 105,000 60,000 60,000 60,000 60,000 $ 6,856 Per year NPV (14% discount rate) Present value ratio $ 1.1 ? ? 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. Do not round intermediate calculations.) 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) $ (75,000) Initial investment Amount of net cash return mtin $ (68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 36,000 36,000 36,000 21,000 $ (154,000) 57,000 57,000 57,000 57,000 57,000 $ (172,000) 17,200 34,400 51,600 68,800 86,000 $ (344,000) 105,000 105,000 60,000 60,000 60,000 60,000 $ 6,856 Per year NPV (14% discount rate) Present value ratio > b. Calculate the present value ratio for projects B, C, D, and E. (Do not round intermediate calculations. 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) $ (75,000) Initial investment Amount of net cash return $ (68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 $ (154,000) 57,000 57,000 57,000 57,000 57,000 $ (172,000) 17,200 34,400 51,600 68,800 86,000 $ (344,000) 105,000 105,000 60,000 60,000 60,000 60,000 6,856 6-10 36,000 36,000 36,000 21,000 ? ? Per year NPV (14% discount rate) Present value ratio $ c-2. $521,000 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) $ (75,000) Initial investment Amount of net cash return $ (68,000) 16,000 16,000 16,000 16,000 16,000 16,000 $ 6,538 1.1 36,000 36,000 36,000 21,000 $ (154,000) 57,000 57,000 57,000 57,000 57,000 $ (172,000) 17,200 34,400 51,600 68,800 86,000 $ (344,000) 105,000 105,000 60,000 60,000 60,000 60,000 $ 6,856 6-10 Per year NPV (14% discount rate) Present value ratio $ ? C-3. $852,000 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.) 2 Project A 2 Project B 7 Project C 2 Project D Project E

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