chapter 24 graded homework
Log in info will be given to see complete exercises and complete homework
Brief Exercise 24-8
Viera Corporation is considering investing in a new facility. The estimated cost of the facility is $2,154,004. It will be used for 12 years, then sold for $710,900. The facility will generate annual cash inflows of $398,900 and will need new annual cash outflows of $150,600. The company has a required rate of return of 7%. Click here to view PV table.
Brief Exercise 24-2
Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $162,050, net annual cash flows $37,500, and present value factor of cash inflows for 10 years 4.66 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Determine the net present value, and indicate whether the investment should be made.
Brief Exercise 24-9
Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $124,000 and will increase annual expenses by $72,000 including depreciation. The oil well will cost $422,000 and will have a $11,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 12.47.)
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.
Vilas Company is considering a capital investment of $191,700 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $12,700 and $49,200, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment.
Need your ASSIGNMENT done? Use our paper writing service to score good grades and meet your deadlines.
Order a Similar Paper Order a Different Paper