urgent
Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Assume straight line depreciation method is used. (Future Value of 51. Present Value of \$1. Future Value Annuity of $1, Present Value Annuity of $1. Note: Use appropriate factor(s) from the tables provided. Project 1: Retooling Manufacturing Facility This project would require an initial investment of $4,950,000. It would generate $955,000 in additional net cash flow each year. The new machinery has a useful life of eight years and a salvage value of $1,900,000 Project 2: Purchase Patent for New Product The patent would cost $3,750,000, which would be fully amortized over flve years. Production of this product would generate $656,250 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Dellvery Trucks Hearne could purchase 25 new delivery trucks at a cost of $153,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $6,000. Purchasing the fleet would allow Hearne to expand its customer territory, resulting in $237,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return 2. Determine each project's payback period 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine each project's accounting rate of return. Fote: Pound your answers to 2 docimal placei. Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $153,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $6,000. Purchasing the fleet would allow Hearne to expand its customer territory, fesulting in $237,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine esch project's accounting rate of return. Note: Round your answers to 2 decimal places Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new dellvery trucks at a cost of $153,000 each. The fleet would have a useful life of to years, and each truck would have a salvage value of $6,000. Purchasing the fleet would allow Hearne to expand its customer teritory, resulting in $237,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine each project's payback period. Note: Round your answert to 2 decimal places: Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $153,000 each. The fleet would have a useful de of 10 years, and each truck would have a salvage value of $6,000. Purchasing the fleet would aliow Hearne to expand its customer ferritory, resulting in $237,000 of additional net income per year Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and priocitize the projects for Hearne. Complete this question by entering your answers in the tabs below. Using a discount rate of 10 percent, caiculate the net present value of each project: Noter Negative amount should be indicated by a minus sign. Round your intermediate caiculations to 4 decimal places and final answers to 2 decimal plocen. Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $153,000each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $6,000. Purchasing the fleet would allow Heame to expand its customer territory, resulting in $237,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of to percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Heame. Complete this question by entering your answers in the tabs below. Determine the proftabiity index of each project and prioritize the projects for Hearne. Note: Round your intermediate calcuiabions to 2 decimal places. Round your final answers to 4 decimal places
