Business, 09.12.2019 19:31 guazet7650

U3 company is considering three long-term capital investment proposals. each investment has a useful life of 5 years. relevant data on each project are as follows.
project bono project edge project clayton
capital investment $164,800 $180,250 $206,000
annual net income:
year 1 14,420 18,540 27,810
2 14,420 17,510 23,690
3 14,420 16,480 21,630
4 14,420 12,360 13,390
5 14,420 9,270 12,360
total $72,100 $74,160 $98,880
depreciation is computed by the straight-line method with no salvage value. the company's cost of capital is 15%. (assume that cash flows occur evenly throughout the year.)
1. compute the cash payback period for each project. (round answers to 2 decimal places, e. g. 10.50.)
2. compute the net present value for each project. (round answers to 0 decimal places, e. g. 125.)

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 02:20

Larissa has also provided the following information. during the year, the company raised $36 million in new long-term debt and retired $20.52 million in long-term debt. the company also sold $22 million in new stock and repurchased $32.4 million. the company purchased $54 million in fixed assets, and sold $6,107,400 in fixed assets. larissa has asked dan to prepare the financial statement of cash flows and the accounting statement of cash flows. she has also asked you to answer the following questions: 1. how would you describe east coast yachts' cash flows? 2. which cash flows statement more accurately describes the cash flows at the company? 3. in light of your previous answers, comment on larissa's expansion plans.

Answers: 2

Answer

Business, 22.06.2019 11:10

Post test question number 9 for entering the job market

Answers: 1

Answer

Business, 22.06.2019 16:10

Regarding the results of a swot analysis, organizational weaknesses are (a) internal factors that the organization may exploit for a competitive advantage (b) internal factors that the organization needs to fix in order to be competitive (c) mbo skills that should be emphasized (d) skills and capabilities that give an industry advantages problems that a specific industry needs to correct

Answers: 1

Answer

Business, 22.06.2019 19:50

Bulldog holdings is a u.s.-based consumer electronics company. it owns smaller firms in japan and taiwan where most of its cell phone technology is developed and manufactured before being released worldwide. which of the following alternatives to integration does this best illustrate? a. venture capitalism b. franchising c. joint venture d. parent-subsidiary relationship

Answers: 2

Answer

You know the right answer?

U3 company is considering three long-term capital investment proposals. each investment has a useful...

Questions