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They are all different question. 1. Lakeside, Inc., is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $5,000

They are all different question.

1. Lakeside, Inc., is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $5,000 per month. The new equipment will have a five-year life and cost $210,000, with an estimated salvage value of $40,000. Lakesides cost of capital is 8%. Required: Calculate the payback period and the accounting rate of return for the new production equipment. (Round your answers to 2 decimal places.)

2.

[The following information applies to the questions displayed below.]

The following capital expenditure projects have been proposed for management's consideration at Scott, Inc., for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.)

Project
Year(s) A B C D E
Initial investment 0 $ (62,000 ) $ (74,000 ) $ (148,000 ) $ (148,000 ) $ (300,000 )
Amount of net cash return 1 13,000 0 47,400 14,800 90,000
2 13,000 0 47,400 29,600 90,000
3 13,000 29,600 47,400 44,400 47,500
4 13,000 29,600 47,400 59,200 47,500
5 13,000 29,600 47,400 74,000 47,500
Per year 6-10 13,000 17,800 0 0 47,500
NPV (14% discount rate) $ 3,244 $ ? $ ? $ ? $ 7,484
Present value ratio 1.05 ? ? ? ?

a. Calculate the net present value of projects B, C, and D, using 14% as the cost of capital for Scott, Inc. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

b. Calculate the present value ratio for projects B, C, D, and E. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

3.

Cowboy Recording Studio is considering the investment of $142,300 in a new recording equipment. It is estimated that the new equipment will generate additional cash flow of $21,000 per year for each year of its 7-year life and will have a salvage value of $13,000 at the end of its life. Cowboyss financial managers estimate that the firms cost of capital is 10%. Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.)

Required:

a. Calculate the net present value, present value ratio, irr and payback period of the investment. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

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