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The following data pertain to an investment that is being considered by the management of Hanson Company: Discount rate 10% Life of the project 5
The following data pertain to an investment that is being considered by the management of Hanson Company: |
Discount rate | 10% |
Life of the project | 5 years |
Cost of the investment | $22,746 |
Annual cost savings | 6,000 |
Salvage value | 1,200 |
The net present value of the proposed investment is (Round your intermediate calculations to 3-decimals and your present value calculations to the nearest dollar amount.): |
$0.
$22,746.
$745.
$745.
A project with a 8-year life has tangible costs and benefits with a $165,000 negative net present value. The companys discount rate is 9%. The amount of annual cash inflow would have to be provided by the projects intangible benefits in order for the project to be acceptable is (Round your intermediate calculation to 3-decimals and final answer to the nearest dollar amount.):
$29,810.
$32,064.
$165,000.
$194,810.
Hamell Company has gathered the following data on a proposed investment project: |
Discount rate | 10% |
Life of the project | 10 years |
Initial investment | $439,900 |
Annual cash inflows | 83,000 |
Salvage value | 0 |
The payback period for the proposed investment is closest to (Round your answer to 2 decimal places.): |
5.30 years.
0.19 years.
0.99 years.
2.99 years.
Hamell Company has gathered the following data on a proposed investment project: |
Discount rate | 8% |
Life of the project | 8 years |
Initial investment | $420,000 |
Annual cash inflows | 88,200 |
Salvage value | 0 |
Assume that excess of incremental revenues over the incremental expenses (including depreciation) equal the annual cash inflows. The simple rate of return on the proposed investment is closest to: (Round your answer to 1 decimal place.) |
31.0%.
41.0%.
11.0%.
21.0%.
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