Beyer Company is considering buying an asset for $400,000. It is expected to produce the following net cash flows. Year 5 $15,000 Net cash flows Year 1 $80,000 Year 2 $80,000 Year 3 $70,000 Year 4 $200,000
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- Optimal Cash Transfer Barenbaum Industries projects that cash outlays of 4.5 million will occur uniformly throughout the year. Barenbaum plans to meet its cash requirements by periodically selling marketable securities from its portfolio. The firms marketable securities are invested to earn 12%, and the cost per transaction of converting securities to cash is 27. a. Use the Baumol model to determine the optimal transaction size for transfers from marketable securities to cash. b. What will be Barenbaums average cash balance? c. How many transfers per year will be required? d. What will be Barenbaums total annual cost of maintaining cash balances? What would the total cost be if the company maintained an average cash balance of 50,000 or of 0 (it deposits funds daily to meet cash requirements)?Francoeur Co. has identified an investment project with the following cash flows: Year 1 2 3 4 Cash Flow $830 $1,150 $1,410 $1,550 If the discount rate is 8 percent, what is the present value of these cash flows as of Year O? $4,013.06 $3,406.47 $3,679.59 $4,549.11 $4,271.21Mendez Company has identified an investment project with the following cash flows. Year 1234 Cash Flow $ 1,090 940 1,490 1,850 a. If the discount rate is 12 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the present value at 15 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the present value at 21 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Present value at 12 percent b. Present value at 15 percent c. Present value at 21 percent
- 21 Beyer Company is considering the purchase of an asset for $210,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Net cash flows Year 0 1 2 3 4 5 Cash Inflow (Outflow) Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.) S (210,000) Year 1 $64,000 Payback period = Year 2 Year 3 Year 4 $33,000 $62,000 $150,000 Cumulative Net Cash Inflow (Outflow) Year 5 $28,000 Saved Total $337,000Part 1 The aggregated cash flows, in dollars, for each of the two alternatives are given in the table below. Relative Cash Flows compared to current operations for year 0 and the first two years Year O Year 1 Year 2 Alternative 1 -592020 +269100 +538200 Alternative 2 -627003 +538200 +269100 MitMart is currently using a discount rate of 10% to evaluate all proposed projects. What is the payback period for each of the two alternatives?Please answer part c Payback Period, IRR, and Minimum Cash Flows The management of Mesquite Limited is currently evaluating the following investment proposal: Time 0 Year 1 Year 2 Year 3 Year 4 Initial investment $250,000 Net operating cash inflows $100,000 $100,000 $100,000 $100,000 G (a) Determine the proposal's payback period. 2.5 years (* (b) Determine the proposal's internal rate of return. (Refer to Appendix 24B if you use the table approach.) 22 (c) Given the amount of the initial investment, determine the minimum annual net cash inflows required to obtain an internal rate of return of 8 percent. Round the answer to the nearest dollar. $ 89,344 *
- Assume that an investment provides the following cash inflows over a three-year period: Year 1 Year 2 Year 3 Total $5,000 5,000 7,000 $ 17,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the present value of these cash inflows?Problem 07.037 - MIRR calculation For the net cash flow serles, find the external rate of return (EROR) using the MIRR method with an Investment rate of 16% per year and a borrowing rate of 11% per year. Year Net Cash Flow, $ 2. 4 4,000 -3.000 -4,000 3.000 -1,300 4,500 The external rate of return is 20.01 O %.Annual cash inflows that will arise from two competing investment projects are given below: Investment A $ 3,000 4,000 5,000 6,000 $ 18,000 Year 1 2 3 4 The discount rate is 10% Click here to view Exhibit 148 1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables Required: Compute the present value of the cash inflows for each investment Year 1234 S S Investment B $6,000 5,000 4,000 3,000 $18,000 Present Value of Cash Flows Investment A 300 300 $ Investment B
- Problem 6. Justine Global Info Tech records the following cash flows at the end of each year for a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow 1 P794,633.00 P542,149.00 P836,200.00 P716,080.00 P520,354.00 2 3 4 5Exercise 24-3 (Algo) Payback period and unequal cash flows LO P1 Beyer Company is considering buying an asset for $310,000. It is expected to produce the following net cash flows. Year 3 $70,000 Year 4 $250,000 Net cash flows Year Year 1 $80,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Net Cash Flows $ (310,000) Payback period Year 2 $40,000 = Year 5 $18,000 Cumulative Cash FlowsAnnual cash inflows from two competing investment projects are given below: Investment A $ 4,000 5,000 6,000 7,000 $ 22,000 Year 1234 The discount rate is 10%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Year 1 2 3 4 $ Investment B $ 7,000 6,000 5,000 4,000 $ 22,000 Present Value of Cash Flows Investment A 0 $ Investment B 0 M ...