Ursus, Incorporated, is considering a project that would have a five-year life and would require a $600,000 investment in equipment At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provido not operating income aach year as follows (Ignore income taxes.): $ 1,900,000 1,300,000 600,000 Sales Variable expenses Contribution margin Fixed expenses: Fixed out-of-pocket cash expenses Depreciation Net operating income $ 400,000 120,000 $ 80,000 All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 7%. Required: a. Compute the project's not present value. (Round your intermediate calculations and final answer to the nearest whole dollar amount.), should the company accept or reject the project? why? b. Compute the project's simple rate of return. (Round your final answer to the nearest whole percent.) use the following present value tables when needed. should the company accept or reject the project? why? The Dracent Value Interest Factors for Single Amount 21.4 21.424 26 739 23.115 01645 09 OT LEZI LOGI DIE SCE CE SI 10.162 10757 CAL 27355 16 BURG 101 0417 05511 LETE W LE AT NE CELE WAT WORT SKET VELLE IT VORES WE MWE? GIO LONT 15 UND CTIE 7. 78304 77 7.5614 TAST 410 71050 TOTO 68164 70790 70027 18925 11.11 11655 TE 3665 9.64 WEGE SCHE 201 DE CAR GOVORE BOUSE 11.03 12.40 12.400 T7159 16.14 16374 15372 12621 14 13 1850 14665 17292 21.402 19.800 16 35 AL 22.30 BBB LOGO 10.274 TS 5 HE CEO & CE 10.05 2020 co 41474 TI LES LEHE WIOS S ANAI BAG PROZ HOW PORT 10201 LG THOG MAI 84217 AD TTS EM 1924 529442142m 45 60113 7 S420 7 MAT Vict HET KET VE ALAT VERE 12.79 12550 12.30 2002 11144 11494 11 11272 11 001 10 EW TO UOSI ARE SI 2016 ISY PL GOT 17413 169 16.444 15:33 24402 TE CE E 18914 10292 17.856 12011 13400 13.163 12. NES RS SA ES STO 775 64BT Os VI 18.882 IT RIS 18 WE ME WHERE BE Den 3.872 UMA ESIMESTS 4 411 4 4 43 4 ts TEL FOTA CON CREW NIE . TO WIE WS E SONO ORIES (UEZ 793 77010 M14744 ROS LOTE RE WIDE GOS SORT NO NICO sed No BCN 18.00 1722 16.30 METZ 1431 13 M 214 12.01 14 100 TIENO 12112216471 HAN RET CON BATE BEEG NEWE BEY FAZ 10 100 LAN 2 TO 28 1 100 GIA Is . COLLE VIRO LOS Mer WWE SUS LES LILIANO V UPS VOUE WS PES USWEAT PGD we CO RE RE NA CEO GORE OG STE LWORCOWO is SISTE - TRELLE DS OR 17.00 TEM MA TOM TA 7.17 MT 7.ST 7 ELTE SA 11 SEE BU S LOS LANTY le AN W 700 Le CE 4. OS LIE W 2144 A A i 2.7217 TALEN am SEE E LE ANTE WS BE LIE 441 40 A41 ST IN WT W Terer 419 NES WELLA NA PIL w . 2 1 LINE ANN are RE LE ATS . EE HELE RETE Z EE NIE E E MME SOVE LORE DE CE - LAIT LP LOT NE SITE TE RSS SET AK LMI WIE GCCOO 0.000 ZOFI CP900 9000 03/15 0.0010 . 09090 IZNO OR . 0.0000 . 0.0014 G15 01221 000/2 014 0 2081 0203201727 GEOPO . OG O VOD 91000 1600 CHO 99900 COLO NO 9610 YO FIO Cita WEB DRO POO co 100 WOO 070 090 O POZOO FD 86197 00140 00100013 BOM 3014 LEG VOCO O POUCO WIPO O 0.007 01221 6.30 1741 0.4202 0.5000 sey 07080 0.7419 SEY 000 0034 0.0075 2015 CIDO PICEO COD TICI CO 5121 AX230 100 2016 0.60 99614 0.0046 10 POO DECO WOO NIDO POO OS es V LOGO WWYW100 toca RO PRO LEGO 22 TE 90471 00734 0923 6.100 0659 0.0011 01015 0.0001 BOM 0. 00140 600209 0.1007 041220 0.102 00618 0351 BOOT 0.100 01577 DITO NO WE MET 9.00 03751 3501 0. 0.1971 010 OCCO 20 CREO 1016 BIBEO GEO IPCO FO COSEO WAPO CIGO 129 USO LO NZOZO P960 ROBO PHIVO 064 GONO ZO INIO SIRO ZB 22 21 POTO 0653 0.015.00 EVO BM 0 1480 0.1615 ..764 1945 0.2168 07312 BUDD W10 ECO OZVO WOWO MORE WEB NE ORG WE O BERO SO C CA PORED SOLO WO 2001. OPEND TINO RO KO O TODO CASO Dones 01190 . 0.1415 G 04664 0.248 STO B. 0.074 .. 8.11 0.101 BICO GE COCO SEO WIRD * CRO FI KOCO OCESO PIED 30 ZERO FOTO PPTED SRO DELEO LED COLO O GIBEO 18 17 6.1078 1970 2011 9.0490 2.3166 Der 0.71 0774 6930 0.4301 WOL 07090 TOT HT 0.8512 TWO COLO WERS WO EOS LOS GELO MOS D. 10 3.252 14 AMY WILD HOWO CSICOMOKO CIPO CISO LEO ENEO ELEO COPCO IRO LETO RO ELEO GEO TO ECO LIKO r. SU COUNCE KO WO MRO WEB WBO Lic. KO SO 6.4810 9.91 SIS 0.3303 2.000 OMALA 04 DEN 0.7490 e7679 7730 HO DO VIZU CTD BETET 2014 1721 0.4440 2.0 T14 0.7224 CB 2 H MS WEI CAT 3404 0.4241 LO PELS ERKE WKU NO PETE wo O NOU TEO CO WO LEO LEO PO ERO O NO O was LOAD CERED se Zeca NO RES RSS WEB O LENTO WE IR CLS we HERE WOLLYWO TO TO wo CORD o GO VE LINNU OD SEED 04 . . BT4 . BINO . ELLESTVIDEO VEROL 14 PEN BE BRITT TELU He MAS WE AL STE BA AL Lo REIM FLOW era LO RO WO SOLO PIE M MENU BOETE NO PEN MO BER BRE NO BNE O Te A Pro Vector for
