SP 24 Serial Problem Business Solutions (Static) 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 $300,000 and to have a six-year life and no salvage value. The equipment is expected to generate income of $12,939 and net cash flow of $62,939 in each year of its six-year life. Santana requires an 8% return on all investments. CV of $1. FV of S1, PVA of $1, and EVA of S1 (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 1-5. 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 8% 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 10 Heq 2 anda Compute the payback period for this equipment. Pay Per Numerat Denominator Cont of vivement Payback period Reg 165 SP 24 Serial Problem Business Solutions (Static) 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 $300,000 and to have a six-year life and no salvage value. The equipment is expected to generate income of $12,939 and net cash flow of $62,939 in each year of its six year life. Santana requires an 8% return on all investments. (PV of $1. FV of $1. PVA of $1, and FVA 0f $9 (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. 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 8% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Ite 1 Reg 10 Req1C Reg 2 and 3 Compute the net present value for this equipment Cash Flow Select Chart Annual cash flow Net Cash Rows Present Value of Annuity Present Value of Net Cash Flows Met present value SP 24 Serial Problem Business Solutions (Static) LO P1, P2, P4 sk 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 $300,000 and to have a six-year life and no salvage value. The equipment is expected to generate income of $12,939 and net cash flow of $62,939 in each year of its sbx.year life. Santana requires an 8% return on all investments (PV of $1. FV of $1. PVA of S1, and FVA of S1 (Use appropriate factor(s) from the tables provided.) (Negative net present values should be Indiented with a minus sign. Do not round Intermediate calculations. Round your present value factor to 4 declmols and final answers to the nearest whole number.) Required: 10. 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, 2.1 Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. Santana requires investments to have at least on 8% internal rate of retum, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Req IA Reg 16 Req IC Reg 2 and a Compute internal rate of return for this equipment, Numerator Present Value Factor Denominator Present Vale Factor 0 Intemal Role of Return SP 24 Serial Problem Business Solutions (Static) 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 fumiture line. The equipment is expected to cost $300,000 and to have a six year life and no salvage value. The equipment is expected to generate income of $12,939 and net cash flow of $62,939 in each year of its six-year life. Santana requires an 8% return on all investments. (PV or $1. FV of $1. PVA of $1, and FVA of S1) (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. 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 on 8% Internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Reg LA Reg 10 RIC Req 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 8% internal rate of return, should she invest in this equipment? 21 Santana requires nivements to have payback periods of four years or less should the invest in this equipment? 3. If Santana requires investments to have at least an intemal rate of retum, should she invest in this equipment?
