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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $124,869. It will have a useful life of 4

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $124,869. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,400, and annual cash outflows would increase by $40,500. Compute the cash payback period.(Round answer to 2 decimal places, e.g. 10.52.)

Cash payback periodenter the Cash payback period in years rounded to 2 decimal places ------------------years.?

Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $182,762and have an estimated useful life of10years. It can be sold for $63,400at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $25,100. The company's borrowing rate is 8%. Its cost of capital is 10%.Click here to view PV table.

Calculate the net present value of this project to the company and determine whether the project is acceptable.(If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.)

Net present value___________$ ???

McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $543,000, has an expected useful life of12years, a salvage value of zero, and is expected to increase net annual cash flows by $74,600. Project B will cost $319,000, has an expected useful life of12years, a salvage value of zero, and is expected to increase net annual cash flows by $45,600. A discount rate of7% is appropriate for both projects.Click here to view PV table.

Compute the net present value and profitability index of each project.(If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Net present value - Project A____________$

enter a dollar amount rounded to 0 decimal places

Profitability index - Project A____________enter the profitability index rounded to 2 decimal places

Net present value - Project B___________$

enter a dollar amount rounded to 0 decimal places

Profitability index - Project B____________

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