TB Problem Qu. 5 Ursus, Incorporated, is considering a project that would have a eight year life and would require a $2.904.000 investment in equipment. At the end of eight years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore income taxes $ 2.500.000 Variable expenses 1.650.000 Contribution margin 950,000 Fixed expenses Fixed out-of-pocket cash expenses $ 290,000 Depreciation 363,000 653,000 Net operating Income $ 297.000 Click here to view Exhibit 120.1 and Exhibit 1282] to determine the appropriate discount factors) using the tables provided. All of the above items, except for depreciation represent cash flows. The company's required rate of return is 11% Required: a. Compute the project's net present value. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Compute the project's internal rate of return (Round your final answer to the nearest whole percent.) c. Compute the project's payback period. (Round your answer to 2 decimal place.) d. Compute the project's simple rate of return (Round your final answer to the nearest whole percent.) % a. Net present value b. Internal rate of return c Payback period d. Simple rate of retum years % 15 44 Next > SEL LAKOSSWO LSO OYO 0367 LOS O ONIO OSZORONTO FOCOLICO 2 PLO WWO 1900 SO PI NUDO LSOO S900 KXHENIT 1201 Present Value of SIT) 54 65 7 N 10 134 14 157 16 17 IN 19 2025225231 246 25 1 06052010913 092 0917 ON HOXOXON0870 0.862 DO O 10826 OR013 TOWO OOOO OOK 0.42 0.826 O12020.787 076 020 743 0731007 0.694 06 0 661 0650 TOVO DOMOROON16 D 0.772 0.751 071 0.1206930767507658901074 0905930519 0564 0551 03240512 4 FORSS 02 0279207 0.75 0.705 061 0659 0616061305920.5720352 0.534 0316 09 042 04670451 DA70423 0410 5 20.784 0.747 0.713 0681 0.621 0.39 050319 049704760.456 0437 04190 402 0316 0370 0335 TO OVER 6 0.7 0.6 0.705060 0.50 0.560 OS 0456 041204110000370 0120335 0.700006650620S 03.07 0.5130482045204250.4000376 03540331040.296 0.279 0263 0.24902350222020 07.10.07 0.027 0.582 0510 O2 046704440404 0376 0351 0327 0305025 0266 0249 02330218 01204 0.191 0.17 0.16 0.700 06-05 0.392 0544000 0.460 0.424 0.391 0.361 0 1 OR 0.28402610 2430 235 0.210.1940.180 0.167 0.155 0144 0.14 TO 0,676 06140.358 0.SON 0. 04220.386 0,352 03220295 0.27002470 222 0.208 0.191 0.176 0162 0.14 0.1370.16 0.116 11 0.65005503270475 0.429 ONS 0.3500317 0270261 0217 0.215 0.195 0.17 0.162 0.14 0.115 0.12301120,103 TIDORES 12 10.62503570-1970444 0397 0.1560190286025702110200 16 0.152 0.137 0.124 0.112 0.102 0092 OOK 0.009 13 0.001 0330 040 0415 0.16 01126 02290 0.25 0.220 0.204 0.182 0.160 0145 0.100.116 0.10460093 084 0075 0035 03770303 04420388 0.140 0.299 OM 0212 0.05 0.18 0.16 0.141 0.125 0.11 0.009 ODS 0.00 02 005590044 13 08559OAN OIVA 01620150275 0.210 2090.0.160.140 0.125 0.10 OONA 0074 0051 005 000 0035 16 0.5140458 0.100.1.19 0.29202520218010610141 0.123 0.107 0.0200540047 0042 0.0360032 17 031304160171 0.312 0.200.231 0.19 0.1700.146 0.125 0.10 0.1993 ODOOTW00521500 OUTOTOVO 0263 IN 0,49404160130 0.296 0.250 0,212 0.100.15001110095 00600051 001400 0032002 002400 19 0.475 0195 0102770.212 0.14 0.1640.138 0.116 009 0.ORG 0.00000600051 00430017 | 0031 0.027 0023 0020 01017 20 04560.377/0.3120.250.2150.1780.149 0.124 0.104 OON7 0.161 0.051 0.04 0037 0.031 0026 0.022019 00160014 GOL 1 0.439 0.359 0.294 0.242 0.199 0.164 0.125 0.112 0,093 007700640053 0044 0037 10031 0026 0022 0.018 0.15 0.0130011 0.43201420.278 0.226 0.1840.15001230.101 0.083 0.068 0056 0046 0.032 0026 0.022 0.018 0015 0.0130011 06 04060.1260.262 0211 0.1700.138 0.112 0.09100740.000 00-19 0.010 0033 0.022 0.022 0.0180015 0.012 ODIO 0.390 0.310 0.2470.197 0.158 0.1260.10200820.06600530013 0035 0.028 0.0230019 0.01500130.0100.00 0.00 0.0060 0375 0.295 0.2330.784 0.146 0.116 0.092 0.074 0.059 0,047 0.038 0.030 0.024 0.0200.0160.013 0010 0.009 0.006 0005 0.361 0.281 0.220 0.172 0.135 0.106 OONA 0.066 0.0530_0420.033 0.026 0.021 0.01710014 10011 0009 0.007 0.006 0.005 0.004 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.0000047 0.037 0.0290.023 0.018 0.014 0.011 0009 0.007 0.006 0.005 00044 0.003 0.333 0.25% 0.1960.150 0.116 0.0690054 0.042 0.033 0.026 0.0200016 0.012 0.00 0.008 0.006 0.005 0.0040003 0.002 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0,022 00170.014 0011 0.008 0.006S 0.0040.003 0.002 0.002 DON 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0,0260.0200015 0.012 0.009 0.007 0.005 0.0040.003 0.003 0.002 06002 LOTO WORYO AKO ONYO NO INOO 100 100 0.00 WTO NEOTO GOTO LOXO TO LEXTO 0 0600 0.893 420 4607 EXHIBIT 122 Pre Value of an Annuity of 51 in Arrearst Periods 64 7 8 94 104 11 125 149 159 17'5 18 204 21 249 25 0962 0952000015 09091701209 ORS OK7700620552470 OXOX60X2001 TOMO RSS 1330 TRNOR 17.51.7361111 16 176 1626 160 155 156 157 152 15142 1414 151 3 2477 27673 237221 27487744427402261 222 223 2246 2210 21174214022012016 0201111.981 1952 16103346 3460 ETT 331220 170 102 3017 2014 2014 255 2.79 25740226192449 250 2.494244 24 212 5 419 42124100 39993 3791 3. 38053317343333523274199 3.1272191 2926226321745 269 6 52423076012 4.767 461 446 413 4111 3 VN 9784 1685 39 3:49 3410 3126 3.2453167 3092 302012951 7 3.786 33259 393065019 NON 4.712 4564 44233 42 416040.29 3922812 3706 360 34163327 32423.361 6.46 6.210 397135747535 535 3.146 4.9684.79946.99 44874044 207 4073 3.954 3117 1726 3619 3512A213120 745 7.TON 6.RO 6.315 3.9955.7595537 53285.1824,946 4.772 4.451 4103 4.163 4031 3305 3.76 3673356646 10 7722736070246.710 6 AIR 6.145 S.NO 5650 SA2 S2105019 484659 4494 4339 4.1924054 3.193.682 3571 11 70 806788774997199 605 6405 6207 5.915687 545115215020 4.2V4656 446 43274177 4035 3231776 36.56 12 9385 8.863 8134 79 73167.161 642 6.10459185766034215.197 498 4.7934611 4410 4274127 395 XST9.72 13 9.969.394 8.8538338 7 74877.00 16.75064246.12232425551425.118 49104.715145894362 4.20 4053 3912379 14 11899 9293 8.745 8.447.786 7167 602 6.6286.102 62 5.725265229 SLOOR 4 M2 4611 4412 420541082962 38 13 R10 TO 9,712 9. 108 8359 80% 76 7191 6811 6462 S247557553245.092 476 4.675 449 4315 4.153 4001 38 16 1652 10 RIN 10.1069447 NS 87247796.97467604 65 595436AOS 5.162 404.710 4516 4.357 4033 39 17 12.165:274 104770.763 9.12285402754912120 6292676047574934755222 4.62 4.7754576 14.391 421914093 IR 13.650.00 10.2 1005091728.756 X 201 77027106,840 6.462 6.123STX155345273 5033 48124644194.243 4 ONO 19 13. 1120 11.158 1033696604 R950 X1657X19216660863506.19857715584533165070 48434635 4442 4097 20 13.50 12.46211470 10 3949.818 9.12983147963 74697025 6.623 6.259159295628 53535.101 4.870 4.657 446042794110 1 14.029 12.62112.764 10.836 1070179.2928.619 8.0757562 7.1026687 631259735.665 534 5.127 491 46754476 4.2924.121 1445113.163 12.042 11.061 10.2019.4428.7728.17676457,170 6.7436359 6.011 5.696 5410 5.149 4.9094.690 4 AKK 4.402 4.130 3 HK57137489 1230311 272 10371/93808.8838.2667718 72230 6.792 6.399 6.0445.7235432 5.1674.925 4.703 4499 4311 4.137 15.247 13.799 12550 11.469 10.529 9.7078.985 84148 7.78472x368356 4346.073 5.746 5451 5.182 4937 4.7134.507 4318 4.14 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.0975.766 5467 5.195 14948 4721 431414.323 4.147 15.983 14.375 13.003 11.826 10.8109.929 9.161 8488 7.896 7.372 6.906 6.491 6.1185.78354805.206 49564.7284.520 4.328 4.15 16.30 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6 514 6.136 5.798 5.492 5.215 4.964 4.734 4.5244.332 4.15 16,663 14.898 13.406 12.137 11.051 10.116 9.3078.602 7.984 7441 6.961 6.534 6.152 5810 5.502 5.2234970 4.739 4.528 4.335 4.1 16.984 15.141 13.591 12.278 11.158 10.1989.370 8.650 8.022 7470 6.983 6.551 6.1665.820 5.510 5.229 49754.743 4.531 4.337 4.1 10:47 8694 8.05574967003 6.5666.1775.8295.517 5.235 4.979 4.7464.5344.339 4
