The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Investment $ 52,000 $ 6,000 2 3 4 5 Cash Inflow $ 4,000 S 8,000 $ 16,000 $ 17,000 $ 20,000 $ 10,000 $ 16,000 $ 14,000 $ 13,000 $ 13,000 10 Required: 1. Determine the payback period of the investment 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the payback period of the investment. (Round your answer to 1 decimal place) Payback period years Labeau Products. Limited, of Perth, Australia, has $26,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Invest in Project X Project Y Investment required $ 26,000 $ 26,000 Annual cash inflows $ 8,000 Single cash intlow at the end of 6 years $ 50,000 Life of the project 6 years 6 years The company's discount rate is 12% Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of Project X. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value Labeau Products, Limited, of Perth, Australia, has $26,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Tnvest in Invest in Project X Project Inventant equired $ 26,000 $ 26,000 Annual ca in love $ 8,000 Bine cash inflow at the end of 6 years $50,000 Liot the project 6 years 6 years The company's discount rate is 12% Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factors) using tables. Required: 1. Compute the net present value of Project X 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Required 1 Required Reclined Compute the net present value of project Y. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar innt.) Nel presenta Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company en mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area: Coat of equipment and timere $460.000 Working capital regaired $ 160,000 Annual et cash receipt $ 175,000 Cout to contract be roads in year three $ 52,000 Salvage value of equipment in four years 5.77.000 "Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 18%. Click here to view Exhibit.128.1 and Exhibit 128-2. to determine the appropriate discount factors) using tables Required: a What is the net present value of the proposed mining project? . Should the project be accepted? Complete this question by entering your answers in the tabs below. Attre Required Required What is the net present value of the proposed mining project? (Enter negative amount with a minus sign. Round your final Answer to the nearest whole dollar amount)
