The Windmill Company is considering investing in a wind turbine to generate its own power. Any...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66463cc66327c_11066463cc65df2e.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66463cc6a7e40_11066463cc6a0f75.jpg)
Transcribed Image Text:
The Windmill Company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the local utility company. Between cost savings and new revenues, the company expects to generate $1,151,500 per year in net cash inflows from the turbine. The turbine would cost $4.7 million and is expected to have a 10-year useful life with no residual value. Calculate the NPV assuming the company uses a 12% hurdie rate (Round your answer to the nearest whole dollar.) Click the icon to view the present value table) (Click the icon to view the present value of an annuity table) (Click the icon to view the future value of an annuity table) (Click the icon to view the future value table.) The NPV is Present Value of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0,862 0.847 0.833 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.683 0.636 0.592 0.552 0.516 0.482 0.621 0.567 0.519 0.476 0.437 0.402 0.564 0.507 0.456 0.410 0.370 0.335 0.513 0,452 0.400 0.354 0.314 0.279 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 Period 12 0.887 Period 13 0.879 Period 14 0.870 Period 15 0.861 Period 20 0.820 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0,601 0.530 0.469 0.368 0.577 0.505 0.442 0.340 0.555 0.481 0.417 0.315 0.456 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.552 0.453 0.307 0.208 0.773 0.681 0.758 0.661 0.743 0.642 0.673 0.554 0.377 0.312 0.215 0.104 0.073 0.051 0.610 0.037 0.026 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.412) 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.290 0.263 0.125 0.237 0.195 0.162 0.135 0.137 0.112 0.229 0.182 0.145 0.116 0.093 0.205 0.160 0.099 0.078 0.239 0.183 0.140 0.108 0.084 0.065 0.149 The Windmill Company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the local utility company. Between cost savings and new revenues, the company expects to generate $1,151,500 per year in net cash inflows from the turbine. The turbine would cost $4.7 million and is expected to have a 10-year useful life with no residual value. Calculate the NPV assuming the company uses a 12% hurdie rate (Round your answer to the nearest whole dollar.) Click the icon to view the present value table) (Click the icon to view the present value of an annuity table) (Click the icon to view the future value of an annuity table) (Click the icon to view the future value table.) The NPV is Present Value of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0,862 0.847 0.833 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.683 0.636 0.592 0.552 0.516 0.482 0.621 0.567 0.519 0.476 0.437 0.402 0.564 0.507 0.456 0.410 0.370 0.335 0.513 0,452 0.400 0.354 0.314 0.279 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 Period 12 0.887 Period 13 0.879 Period 14 0.870 Period 15 0.861 Period 20 0.820 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0,601 0.530 0.469 0.368 0.577 0.505 0.442 0.340 0.555 0.481 0.417 0.315 0.456 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.552 0.453 0.307 0.208 0.773 0.681 0.758 0.661 0.743 0.642 0.673 0.554 0.377 0.312 0.215 0.104 0.073 0.051 0.610 0.037 0.026 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.412) 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.290 0.263 0.125 0.237 0.195 0.162 0.135 0.137 0.112 0.229 0.182 0.145 0.116 0.093 0.205 0.160 0.099 0.078 0.239 0.183 0.140 0.108 0.084 0.065 0.149
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Question 1(1 point) Black Hill Inc. sells $100 million worth of 28-year to maturity 10.29% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $991 for each $1,000 bond. What...
-
Question 1 x P(x) 0 0.05 1 0.15 2 0.2 3 0.6 Find the standard deviation of this probability distribution. Give your answer to at least 2 decimal places Question 2 Find the mean, , of this probability...
-
The Habbertone Company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the local utility company. Between cost savings and new revenues,...
-
1. Based on a simple, constant context, you will arrive at a stationary state for a unregulated, and then a regulated system. Assume that air resistance and friction for a car increase in the power...
-
You are an analyst for a sporting goods corporation that is considering a new project that will take advantage of excess capacity in an existing plant. The plant has a capacity to produce 50,000...
-
Facts Terry, a bill collector, has been attempting to collect a bill from Client. Every other evening for the past two weeks, he has called Client at home after 8:30 p.m. and threatened to call her...
-
The Arcadia Company is uncertain whether it should utilize the first-in, first-out (FIFO) method, the last-in, first-out (LIFO) method, or the weighted-average method to account for its inventory....
-
The adjusted trial balance for Madrasah Co. is presented in the following worksheet for the month ended April 30, 2012. InstructionsComplete the worksheet and prepare a classified balancesheet....
-
ssume today is December 3 1 , 2 0 1 9 . Barrington Industries expects that its 2 0 2 0 after - tax operating income [ EBIT ( 1 T ) ] will be $ 4 1 0 million and its 2 0 2 0 depreciation expense will...
-
Q1. Following Figure shows the VTC of gates M M M M M Vout 12V 0.2V M Vou' 12V- respectively. Vout 1.2V 0.3V M 0.2V 0.7V 0.2V IV 0.2V IV Vin I. Draw the butterfly diagram of the gates M, M2 and M3....
-
Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy:...
-
How do resilient individuals cultivate adaptive coping strategies, and what specific practices enable them to rebound from significant setbacks ?
-
Was Milton Friedman correct about the limitations on the social responsibilities of business? Describe Friedman's theories and assess whether it is a viable approach to business in the modern world....
-
Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000....
-
Kohler Corporation reports the following components of stockholders equity at December 3 1 of the prior year. Common stock $ 1 5 par value, 1 0 0 , 0 0 0 shares authorized, 4 5 , 0 0 0 shares issued...
-
Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. Wings, breading, and sauce $4,900 Direct labor (Variable) 3,500 Rent 1,100 Depreciation 900...
-
Teasdale Inc. manufactures and sells commercial and residential security equipment. The comparative unclassified balance sheets for December 31, 2015 and 2014 are provided below. Selected missing...
-
The following T-accounts contain keyed entries representing five transactions involving the stockholders' equity of Meadow, Inc.: Required Using this information, give detailed descriptions,...
-
The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book. Required Answer the following questions: a. How many shares of common stock are...
-
Egghead, Inc., was a software chain that had over 100 stores across the U.S. Initially its founders and employees owned the company privately. The company eventually went public with an initial...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App