Take me to the text Assuming the interest rate is 7%, what is the present value of a $1,900 payment you will receive in: Do not enter dollar signs or commas in the input boxes. Use the PV tables in the appendix at the end of the book. Round all answers to the nearest whole number. a) 4 years? $1450 b) 9 years? $ c) 10 years? $ Check Take me to the text Use the information in the table to calculate the present value of the annuity: Annual Payment $47500 Discount Rate 6% Number of Years 8 Do not enter dollar signs or commas in the input boxes. Use the PV tables in the appendix of the textbook. Round your answer to the nearest whole number. Present Value: $ Check Take me to the text The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-8,900 1 $4,900 2 $8,300 Do not enter dollar signs or commas in the input boxes. Use the negative sign where appropriate. Round the factor to 4 decimal places and the NPV to the nearest whole number. Assume the required rate of return is 7%. Determine the net present value of this asset. Year Net Cash Flow Factor Net Present Value $-8,900 1 $ -8900 0 1 2 Total $4,900 .9346 $8,300 .8734 Check EA Take me to the text The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-191,000 1 $66,000 2 $66,000 3 $66,000 4 $66,000 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Calculate the cash payback period using the formula method. Payback:| Check years Take me to the text Joanna is the manager of a marketing department, and is considering a project that will cost $976,000 to implement. The project will last three years until it would be shut down and the project will have a residual value of $0. The incremental operating income is shown below. Year Incremental Operating Income 1 2 3 $69,000 $56,000 $38,000 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Calculate the ARR for the project. ARR:|| Check % Take me to the text Richard Ramirez is considering investing in either ABC or ZYX. Both investments ABC and ZYX cost $15,000. In order to make the purchase, Richard Ramirez needs to obtain a loan from the bank at an interest rate of 7%. The bank is only willing to offer Richard Ramirez $15,000. The following table outlines the expected net cash flows from each investment. Year ABC ZYX 1 $600 $11,800 2 $1,200 $4,700 $3,400 $3,500 4 $7,600 $1,300 5 $9,100 $600 Total $21,900 $21,900 Based on the NPV method, which investment should Richard Ramirez purchase? Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative NPV. Use the PV tables in the appendix of the textbook. Round your answers to the nearest whole number. NPV of Investment ABC: $ NPV of Investment ZXY: $ Better Investment: Check Take me to the text The Harmony Corporation is considering replacing the old binding equipment with a new one at a cost of $303,000. With the new equipment, the company expects to save $31,000 in maintenance costs per year, all cash savings. These savings in maintenance costs represent both an increase in cash flow and an increase in incremental operating income. The new binding equipment has an estimated useful life of 9 years with no salvage value. The company's required rate of return is 9%. The old binding equipment has no salvage value. Do not enter dollar signs or commas in the input boxes. Use the present value tables found in the textbook appendix. Use the negative sign for negative values. Round all answers to 2 decimal places. a) Assume the company wants to recover their initial investment on the new equipment in nine years. Based on the payback method, should Harmony Savage purchase the new equipment? Cash Payback Period: years Should Harmony purchase the new equipment?: b) If the ARR method is used, should Harmony Savage purchase the new equipment? ARR: % Should Harmony purchase the new equipment?: c) If the NPV technique was used, should Harmony Savage purchase the new equipment? Round your answer to the nearest whole number. NPV: $ Should Harmony purchase the new equipment?: Check