Stout: Initial Investment: $24,000 Boise: Initial Investment: $30,000

Ch 11 Tableau-3 A Saved Help Save & Exit Submit Check my work Mac Co. is considering investing in two different projects, Stout and Boise. The company requests our help analyzing accounting data to ensure it makes the right investment decision. The Tableau Dashboard is provided for our analysis. The company 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.) points Initial Investment per Project eBook Print References Stout Boise Ch 11 Tableau-3 A Saved Help Save & Exit Submit Check my work Expected Net Cash Flows per Project Stout Boise points $8,000 $4,000 eBook Print $8,000 $9,000 References $8,000 Year 3 $13,000 $8,000 Year 4 $20,000 Ch 11 Tableau-3 Saved Help Save & Exit Submit Check my work $8,000 Year 5 $18,000 points $0 $0 $20,000 $15,000 $10,000 $5,000 Expected Net Cash Flows (Stout) $5,000 $10,000 $15,000 $20,000 Expected Net Cash Flows (Boise) eBook tableau Print References 1. Compute the net present value of each project. 2. Based on net present values, which project(s) should the company invest in? 3. Assuming the company must choose one project only, compute the profitability index to determine the best project to invest in Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of each project. Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Ch 11 Tableau-3 A Saved Help Save & Exit Submit Check my work Required 1 Required 2 Required 3 Compute the net present value of each project. points Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows eBook Print Stout Year 1 Year 2 Year 3 Year 4 References Year 5 Totals Amount invested Net present value Boise Year 1 Year 2 Year 3 Year 4 Year 5 Ch 11 Tableau-3 A Saved Help Save & Exit Submit Check my work 2. Based on net present values, which project(s) should the company invest in? 3. Assuming the company must choose one project only, compute the profitability index to determine the best project to invest in. values whicle orice coro e outlet compute the profit Complete this question by entering your answers in the tabs below. 15 points Required 1 Required 2 Required 3 eBook --------- Based on net present values, which project(s) should the company invest in? Print References Based on net present values, which project(s) should the company invest in? Ch 11 Tableau-3 i Saved Help Save & Exit Submit Check my work 2. Based on net present values, which project(s) should the company Invest In? 3. Assuming the company must choose one project only, compute the profitability index to determine the best project to invest in. Complete this question by entering your answers in the tabs below. points Required 1 Required 2 Required 3 eBook Print Assuming the company must choose one project only, compute the profitability index to determine the best project to invest in. References Profitability Index Choose Numerator: 1 Choose Denominator: = Profitability Index Profitability index Stout Boise If the company can choose only one project, which should it choose? TABLE B.1 Present Value of 1 p=1/(1 + i)" Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 0.9901 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8613 0.8528 0.8444 0.8360 0.8277 0.8195 0.7798 0.7419 0.7059 0.6717 0.9804 0.9612 0.9423 0.9238 0.9057 0.8880 0.8706 0.8535 0.8368 0.8203 0.8043 0.7885 0.7730 0.7579 0.7430 0.7284 0.7142 0.7002 0.6864 0.6730 0.6095 0.5521 0.5000 0.4529 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 .6611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3554 0.3066 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 0.3083 0.2534 0.2083 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.2953 0.2314 0.1813 0.1420 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0.3714 0.3503 0.3305 0.3118 0.2330 0.1741 0.1301 0.0972 0.9346 0.9259 0.8734 0.8573 0.8163 0.7938 0.7629 0.7350 0.7130 0.6806 0.6663 0.6302 0.6227 0.5835 0.5820 0.5403 0.5439 0.5002 0.5083 0.4632 0.4751 0.4289 0.4440 0.3971 0.4150 0.3677 0.38780.3405 0.3624 0.3152 0.3387 0.2919 0.3166 0.2703 0.2959 0.2502 0.2765 0.2317 0.2584 0.2145 0.1842 0.1460 0.1314 0.0994 0.0937 0.0676 0.0668 0.0460 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 0.4224 0.3875 0.3555 0.3262 0.2992 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 0.1160 0.0754 0.0490 0.0318 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 0.0923 0.0573 0.0356 0.0221 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0588 0.0334 0.0189 0.0107 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 0.1069 0.0929 0.0808 0.0703 0.0611 0.0304 0.0151 0.0075 0.0037 0 *Used to compute the present value of a known future amount. For example: How much would you need to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from today 2 Using the factors of n= 12 and i=5% (12 semiannual periods and a semiannual rate of 5%), the factor is 0.5568. You would need to invest $2,784 today (55.000 x 0.5568). TABLE B.2 Future Value of 1 f=(1 + i)" Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1.0000 1.0100 1.0201 1.0303 1.0406 1.0510 1.0615 1.0721 MDOGO WAWNO 1.0829 1.0937 1.1046 1.1157 1.1268 1.1381 1.1495 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 1.2824 1.3478 1.4166 1.4889 1.0000 1.0200 1.0404 1.0612 1.0824 1.1041 1.1262 1.1487 1.1717 1.1951 1.2190 1.2434 1.2682 1.2936 1.3195 1.3459 1.3728 1.4002 1.4282 1.4568 1.4859 1.6406 1.8114 1.9999 2.2080 1.0000 1.0000 1.03001.0400 1.06091.0816 1.0927 1.1249 1.1255 1.1699 1.1593 1.2167 1.1941 1.2653 1.2299 1.3159 1.2668 1.3686 1.3048 1.4233 1.3439 1.4802 1.3842 1.5395 1.4258 1.6010 1.4685 1.6651 1.5126 1.7317 1.5580 1.8009 1.6047 1.8730 1.6528 1.9479 1.7024 2.0258 1.7535 2.1068 1.8061 2.1911 2.0938 2.6658 2.4273 2.8139 3.9461 3.2620 4.8010 1.0000 1.0500 1.1025 1.1576 1.2155 1.2763 1.3401 1.4071 1.4775 1.5513 1.6289 1.7103 1.7959 1.8856 1.9799 2.0789 2.1829 2.2920 2.4066 2.5270 2.6533 3.3864 4.3219 5.5160 7.0400 1.0000 1.0600 1.1236 1.1910 1.2625 1.3382 1.4185 1.5036 1.5938 1.6895 1.7908 1.8983 2.0122 2.1329 2.2609 2.3966 2.5404 2.6928 2.8543 3.0256 3.2071 4.2919 5.7435 7.6861 10.2857 1.0000 1.0700 1.1449 1.2250 1.3108 1.4026 1.5007 1.6058 1.7182 1.8385 1.9672 2.1049 2.2522 2.4098 2.5785 2.7590 2.9522 3.1588 3.3799 3.6165 3.8697 5.4274 7.6123 10.6766 14.9745 1.0000 1.0000 1.0800 1.0900 1.1664 1.1881 1.2597 1.2950 1.3605 1.4116 1.4693 1.5386 1.5869 1.6771 1.7138 1.8280 1.8509 1.9926 1.9990 2.1719 2.1589 2.3674 2.3316 2.5804 2.5182 2.8127 2.7196 3.0658 2.9372 3.3417 3.1722 3.6425 3.4259 3.9703 3.7000 4.3276 3.9960 4.7171 4.3157 5.1417 4.6610 5.6044 6.8485 8.6231 10.0627 13.2677 14.7853 20.4140 21.724531.4094 1.0000 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 10.8347 17.4494 28.1024 45.2593 1.0000 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 17.0001 29.9599 52.7996 93.0510 1.0000 1.1500 1.3225 1.5209 1.7490 2.0114 2.3131 2.6600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 9.3576 10.7613 12.3755 14.2318 16.3665 32.9190 66.2118 133.1755 267.8635 3.2434 40 *Used to compute the future value of a known present amount. For example: What is the accumulated value of $3,000 invested today at 8% compounded quarterly for 5 years? Using the factors of n = 20 and i = 2% (20 quarterly periods and a quarterly interest rate of 2), the factor is 1.4859. The accumulated value is $4,457.70 ($3,000 x 1.4859). TABLE B.3: Present Value of an Annuity of 1 Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1- 0 Borges SUMO DO DOWN 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 22.0232 25.8077 29.4086 32.8347 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.5753 11.3484 12.1062 12.8493 13.5777 14.2919 14.9920 15.6785 16.3514 19.5235 22.3965 24.9986 27.3555 0.9709 0.9615 1.9135 1.8861 2.8286 2.7751 3.7171 3.6299 4.5797 4.4518 5.4172 5.2421 6.2303 6.0021 7.0197 6.7327 7.7861 7.4353 8.5302 8.1109 9.2526 8.7605 9.9540 9.3851 10.6350 9.9856 11.2961 10.5631 11.9379 11.1184 12.5611 11.6523 13.1661 12.1657 13.7535 12.6593 14.3238 13.1339 14.8775 17.4131 15.6221 19.6004 17.2920 21.4872 18.6646 23.114819.7928 0.9524 0.9434 0 .9346 1.8594 1.8334 1.8080 2.7232 2.6730 2.6243 3.5460 3.4651 3.3872 4.3295 4.2124 4.1002 5.0757 4.9173 4.7665 5.7864 5.5824 5.3893 6.4632 6.2098 5 .9713 7.1078 6.8017 6.5152 7.7217 7.3601 7.0236 8.3064 7.8869 7.4987 8 .8633 8.3838 7.9427 9.3936 8.8527 8.3577 9.8986 9.2950 8.7455 10.3797 9.7122 9.1079 10.8378 10.1059 9.4466 11.2741 10.4773 9.7632 11.6896 10.8276 10.0591 12.0853 11.1581 10.3356 12.4622 11.4699 10.5940 14.093912.7834 11.6536 15.3725 13.7648 12.4090 16.3742 14.4982 12.9477 17.1591 15.046313.3317 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11.6546 11.9246 0.9174 0.9091 0.8929 0.8696 1.7591 1.7355 1.6901 1.6257 2.5313 2.4869 2.4018 2.2832 3.2397 3.1699 3.0373 2.8550 3.8897 3.7908 3.6048 3.3522 4.4859 4.3553 4.1114 3.7845 5.0330 4.8684 4.5638 4.1604 5.5348 5.3349 4.9676 4.4873 5.9952 5.7590 5.3282 4.7716 6.4177 6.1446 5.6502 5.0188 6.8052 6.4951 5.9377 5.2337 7.16076.8137 6.1944 5.4206 7.4869 7.1034 6.4235 5.5831 7.7862 7.3667 6.62825.7245 8.0607 7.6061 6.81095.8474 8.3126 7.8237 6.9740 5.9542 8.5436 8.0216 7.1196 6.0472 8.7556 8.2014 7.2497 6.1280 8.9501 8.36497.3658 6.1982 9.1285 8.5136 7.4694 6.2593 9.8226 9.0770 7.8431 6.4641 10.27379.4269 8.0552 6.5660 10.5668 9.6442 8.1755 6.6166 10.7574 9.7791 8.2438 6.6418 *Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual interest rate of 9%? For (n = 10,i = 9%), the PV factor is 6.4177. $2,000 per year for 10 years is the equivalent of $12,835 today ($2,000 X 6.4177). f=[(1 + i)" - 1]/i TABLE B.4 Future Value of an Annuity of 1 Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 8 1.0000 2.0100 3.0301 4.0604 5.1010 6.1520 7.2135 8.2857 9.3685 10.4622 11.5668 12.6825 13.8093 14.9474 16.0969 17.2579 18.4304 19.6147 20.8109 22.0190 28.2432 34.7849 41.6603 48.8864 1.0000 2.0200 3.0604 4.1216 5.2040 6.3081 7.4343 8.5830 9.7546 10.9497 12.1687 13.4121 14.6803 15.9739 17.2934 18.6393 20.0121 21.4123 22.8406 24.2974 32.0303 40.5681 49.9945 60.4020 1.0000 1.0000 1.0000 1.0000 2.0300 2.0400 2.0500 2.0600 3.0909 3.1216 3.1525 3.1836 4.1836 4.2465 4.3101 4.3746 5.3091 5.4163 5.5256 5.6371 6.4684 6.6330 6.8019 6 .9753 7.6625 7.8983 8.1420 8.3938 .8923 9.2142 9.5491 9.8975 10.1591 10.5828 11.0266 11.4913 11.4639 12.0061 12.5779 13.1808 12.8078 13.4864 14.2068 14.9716 14.1920 15.0258 15.9171 16.8699 15.6178 16.6268 17.7130 18.8821 17.0863 18.2919 19.5986 21.0151 18.5989 20.0236 21.5786 23.2760 20.1569 21.8245 23.6575 25.6725 21.7616 23.697525.8404 28.2129 23.4144 25.6454 28.1324 30.9057 25.116927.6712 30.5390 33.7600 26.8704 29.7781 33.0660 36.7856 36.4593 41.6459 47.7271 54.8645 47.5754 56.084966.4388 79.0582 60.4621 73.6522 90.3203 111.4348 75.4013 95.0255 120.7998 154.7620 1.0000 1.0000 2.0700 2 .0800 3.2149 3.2464 4.4399 4.5061 5.7507 5.8666 7.1533 7.3359 8.6540 8.9228 10.2598 10.6366 11.9780 12.4876 13.8164 14.4866 15.7836 16.6455 17.8885 18.9771 20.1406 21.4953 22.5505 24.2149 25.1290 27.1521 27.8881 30.3243 30.8402 33.7502 33.9990 37.4502 37.3790 41.4463 40.9955 45.7620 63.2490 73.1059 94.4608 113.2832 138.2369172.3168 199.6351 259.0565 1.0000 1.0000 2.0900 2.1000 3.2781 3.3100 4.5731 4.6410 5.9847 6.1051 7.5233 7.7156 9.2004 9.4872 11.0285 11.4359 13.0210 13.5795 15.1929 15.9374 17.5603 18.5312 20.1407 21.3843 22.9534 24.5227 26.0192 27.9750 29.360931.7725 33.0034 35.9497 36.9737 40.5447 41.3013 45.5992 46.0185 51.1591 51.1601 57.2750 84.700998.3471 136.3075 164.4940 215.7108 271.0244 337.8824 442.5926 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.0890 12.2997 14.7757 17.5487 20.6546 24.1331 28.0291 32.3926 37.2797 42.7533 48.8837 55.7497 63.4397 72.0524 133.3339 241.3327 431.6635 767.0914 1.0000 2.1500 3.4725 4.9934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 24.3493 29.0017 34.3519 40.5047 47.5804 55.7175 65.0751 75.8364 88.2118 102.4436 212.7930 434.7451 881.1702 1.779.0903 19 20 40 "Used to calculate the future value of a series of equal payments made at the end of each period. For example: What is the future value of $4,000 per year for 6 years assuming an annual interest rate of 8%? For (n=6, i = 8%), the FV factor is 7.3359. $4,000 per year for 6 years accumulates to $29,343.60 ($4,000 x 7.3359)