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The PV OF $1 for a 20 yr period @ 12% is .1037 The PVA of $1 for 20 is 7.4694 Optivex is coneidering thverting
The PV OF $1 for a 20 yr period @ 12% is .1037
The PVA of $1 for 20 is 7.4694
Optivex is coneidering thverting in an automated manufacturing system. The bystem requies an intial invectmant of 960 million, has a 20-year ite, and will havo zero savage value. If the system is implemented, the company will save $820,000 per year in direct labor costs The company requires a 12% return from its investreents. PV of S1. FV of \$1. PVA of S1. and EVA. of SII (Use approprate factoris) from the tables provided. a. Compute the proposed investments net present value. b. Using the ancwor from part a. Is the investments internal rate of return higher or lower than 1215 ? Hint it is not necescary to compute IRR to antiver this quecvion. Contelete this question by entering your answers in the tabs below. Carrouti the proposed investmert's net present value. Opritux is considening inverting in an automated marufacturing systeen. The system requies an intryi investment of 56.0 milion, has a 20 year iffe, and will have zero salvage vatue. It the systom is implemented, the compary will cave 5820,000 par year in direct labor cots. The compary requires a 125s return from its itvertments, PV of S1. FV of 51, BVA of 51, and AVA of 5.00 (Use opproprite factorto from the tables provided.) a. Compute the proposed invectmernis net present value b. Ving the answer from part a. b the investment's irternal rate of return higher or lower than 128?? Hent it is nos necessary to. compute IRA to answer this quection. Complete this question by entering vour answers in the tabs below. Using the ancver frem part at, is the investment's intecnal rate of recurn higher or lower than 12% ? Fint: is is not nocessary to compute 18f to antwir this question. Optivux is coneldering invecting in an automated manufacturing system. The bystem requies an intial irvegtmont of 5.50 million, has a 20-year life, and will have zero salvage value. If the system is implemented, the company will save $820.000 per year in direct labor coses, The company requires a 12% retum from its investments. (PV of S1. FV of \$3, PVA of S1, and EVA. of \$7) (Ure appropriate factor(c) from the tables provided] a. Compute the proposed tnvestment's net precent value, b. Using the ancwor from part a. Is the investment s internal rate of return higher or lower than 1253 Hint; it is not necessary to compunte IRR to antwer this quection. Conglete this question by entering your answers in the tabs below. Carroute the proposed investmert's net present value. 20 yoar inte, and will have zero salvage vilue. It the systom is implemented, the company will save $820,000 par year in direct abor cotts. The compary requires a 125 return from its invectments. PV of Si. FY of 51, EVA of 51, and EVA of 59 Use approprate factorto frem the tables provided.) a. Compute the proposed invectmernis net present value. b. Ving the answer from part a, ts the inveitment's irternal rate of return higher or lower than 126 ? Hent it is nos necessary to compute tRP to answer this question. Complete this question by entering vour answers in the tabs below. Uhing the ancvier from part a, is the investment's internal rate of resum higher or lever than 12% ? Hint: its is not necassary to compute 18R te andewr this Step by Step Solution
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