Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

want full pic of correct answer Sweet Acacia Company is considering a long-term investment project called ZIP ZIP will require an investment of $133,000. It

want full pic of correct answer
image text in transcribed
image text in transcribed
Sweet Acacia Company is considering a long-term investment project called ZIP ZIP will require an investment of $133,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $79,100, and annual cash outflows would increase by $38,500. In addition, the company's required rate of return is 9% Click here to view the factor table. (a) Calculate the net present value on this project. (If the answer is negative, use either a negative sign preceding the number eg.-5,275 or parentheses eg. (5,275). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg 1.25124 and final answer to decimal places, eg. 5,275.) Net present value Identify whether the project should be accepted or rejected The project should be (b) Calculate the internal rate of return on this project. (Round answer to 1 decimal place, eg. 5.2%) Internal rate of return % Identify whether the project should be accepted or rejected. The project should be

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction accounting and financial management

Authors: Steven j. Peterson

2nd Edition

135017114, 978-0135017111

More Books

Students also viewed these Accounting questions

Question

What was the primary goal of the woman suffrage movement?

Answered: 1 week ago

Question

What event led the United States to enter world war II?

Answered: 1 week ago

Question

The slogan 'no representation no tax' Is the result of which event?

Answered: 1 week ago

Question

Who was the first European to land in the U.S. ?

Answered: 1 week ago