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Requirements - X 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What
Requirements - X 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? 3. What is the profitability index of each project? Round to two decimal places Print Done a Reference - X Present Value of $1 Periods 4% 0.962 0.925 0.889 0.855 0.822 0.790 5% 0.952 0.907 0.864 0.823 0.784 6% 7% 0.9430.935 0.890 0.873 0.840 0.816 0.792 0.763 0.747 15% 0.870 0.756 0.658 0.572 0.497 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 20% 0.833 0.694 0.579 0.482 0.402 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.851 0.452 868 0.703 0.386 0.227 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.863 0.888 0.837 0.871 0.813 0.853 0.789 0.837 0.766 0.820 0.744 0.804 0.788 0.773 0.681 0.758 0.661 0.743 0.642 0.728 0.623 0.714 0.605 0.700 0.587 0.686 0.673 0.554 0.660 0.538 0.647 0.522 0.634 0.507 0.622 0.492 0.610 0.478 0.701 8% 9% 10% 12% 14% 0.9260.917 0.909 0.893 0.877 0.857 0.842 0.826 0.797 0.769 0.7940.772 0.751 0.712 0.675 0.735 0.708 0.683 0.636 0.592 0.681 0.650 0.621 0.567 0.519 0.596 0.564 0.507 0.456 0.547 0.513 0.400 0.502 0.457 0.404 0.351 0.460 0.424 0.361 0.308 0.422 0.322 0.270 0.388 0 287 0.237 0.356 0.257 0.326 0.290 0.229 0.299 0.205 0.275 0.239 0.140 0.252 0.218 0.163 0.123 0.231 0.1980.146 0.108 0.212 0.180 0.130 0.095 0.194 0.164 0.116 0.083 0.215 0.178 0.149 0.104 0.073 0.1990.1640.135 0.093 0.064 0.184 0.150 0.123 0.083 0.056 0.1700.138 0.112 0.074 0.049 0.158 0.126 0.102 0.066 0.043 0.146 0.116 0.092 0.0590.038 0112 0.263 0.183 0.135 0.093 0.078 0.065 0.054 0.045 0.038 0.853 0.534 0.513 0.494 0.339 0.317 295 0.570 0.475 0.844 0.836 0.828 0.820 0.811 0.803 0.795 0.788 0.780 0.456 0.377 0.439 0.359 0.422 0.342 0.4060.326 0.390 0.310 0.375 0.295 0.3120.258 0.294 0.242 0.278 0.226 0.262 0.211 0.247 0.197 0.233 0.184 0.061 0.051 0.053 0.044 0.046 0.038 0.040 0.033 0.035 0.028 0.030 0.024 0.031 0.022 0.025 0.018 0.022 0.015 0.019 0.013 0.0160.010 25 Print Done 0 Reference - X Present Value of Ordinary Annuity of $1 1.Ep | 1 1. 2 . 4. 3. 3. 74 ** 20 | 8.111 | 3 5% | a | T | M | 0 | 10 | 12 | 14 | 15 | 16 | 18 AD | . | 0.971 0.962 0.92 | 0.43 | 0.35 | 0 92 | 0.917 | 0.00 | 0.293 | 0.87 | 0.30 | 0.2 bA .83 17] 1.42 1.39 | 1.33 | 1.218 | 1.7 | 1.79 | 1.36 | 1.90 1 547 | 1.62 1566 1. 2.73 | 2.24 | 2.5T | 2.531 | 2.437 | 2.402 13 | 23 2.246 2:174 21 3.838 3.4 | 3.37 3.312 | 1.240 | 3.17 | 3.13) | 2014 2 2.798 2.90 2.589 | 4.713 4.212 | 4.100 | 39 | 3.390 | 3.791 | 3.5 | 3.433 3.352 3.127 2 991 5.735 4.62 4.48 6.728 5.339 5.033 4.558 .52 6.210 5.971 5.747 5.35 8.. 8.162 6.802 6.15 6 247 5.99 5.75g 5 822 9 471 3.83 8.30 | 7.124 5.710 | 6.418 6.145 10.34 | 9.787 | .253 | | 8.70 1.487 | T.499 1.33 | 6.8 112 10.57 9.94 .3 .334 | T.943 1.5 | 1.161 12.134 11.348 | 10.35 | g 9 9.324 8.53 8.358 f 904 48-7 13.004 | 12106| 11.22 | 10.63 9.39 9.295 | 8.745 8 244 | .78 5.008. 4.11 13. | 12.34 || 11.38 | 11.118 | 10.3 9.T12 | .108 | 8.59 | 8.01 4.675 14.713 15 578 || 12.1] 11.2 10.83 | 10.13 | 9:447 | 8.351 | 8.313 5.954 5.162 14.202 13.15 | 12.168 11 274 10.47] .73 | 0.12 | 8.544 4.77 16.33 14.902 13.754 | 12.9) 11. | 10.32 | 10. | .3T2 | 8.76 4 $12 15.678 | 3.134 12.08 11.158 | 10.336 | .604 | 8.950 16.351 14.871 13.590 | | 12 462 11.470 | 10.94 | 9.218 | 9.129 18.85 | 17.011| 15.415 | 14.029 | 12 321 | 11.74 | 10.36 | 10.01 | 9.292 | 3.4 | 1.2 6.587 6.312 .973 5.34 | 4.391 19. | 11.58 ] 15.3r | 4.451 | 13. | 12.042| 11.01 | 10.211 | 9,442 | 3.2 | 1.45 743 6.352 6.011 | 5.410 | 4 909 20.4 | 18.202| 16.14 | 14. | 13.48 | 12.30 | 11.22 | 10.3 | 9.58 | 3.83 | 1.18 | 6.72 6.39 6.244 .432 | 492 21 243 | 18.914 | 16.35 | 1.247 | 13.7 | 12. 11.49 | 10.529 | 9.70 | 3.935 | 1.4 | | BS .434 | 6.073 | 5.451 | 4937 22 02 | 19. 17.413 | 15.6.22 | 14.0 | 12.78| 11.4 | 10.75 | 9.3Z3 | 9.01 | 1.843 | 5.8T3 | 6.44 | 6.097 | 1.47 | 4,943 6. OAT 23 1 22 14,314 | 4. Print Done Use the NPV method to determine whether Stenback Products should invest in the following projects Project A: Costs S285.000 and offers seven annual net cash inflows of $53,000. Stenback Products requires an annual return of 14% on investments of this nature. Project B: Costs S400.000 and offers 9 annual net cash inflows of $76.000. Stenback Products demands an annual return of 12% on investments of this nature. Click the icon to view Present Value of $1 table.) Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, XXOOX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Inflow Annuity PV Factor (i=14%, n=7) Present Value Years 1-7 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B. Project B: Present Net Cash Inflow Annuity PV Factor (i=12%, n=9) Years Value 1-9 Present value of annuity Investment Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Requirement 3. What is the profitability index of each project? (Round to two decimal places, X.XX.) Select the formula, then enter the amounts to calculate the profitability index of each project. = Profitability Index Project A Project B Choose from any list or enter any number in the input fields and then continue to the next
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