Current Attempt in Progress Pharoah Company is considering purchasing new equipment for $451,400. It is expected that the equipment will produce net annual cash flows of $61,000 over its 10-year useful life. Annual depreciation will be $45,140. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years
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- Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.Gallant Sports s considering the purchase of a new rock-climbing facility. The company estimates that the construction will require an initial outlay of $350,000. Other cash flows are estimated as follows: Assuming the company limits its analysis to four years due to economic uncertainties, determine the net present value of the rock-climbing facility. Should the company develop the facility if the required rate of return is 6%?Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.
- Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.Rihanna Company is considering purchasing new equipment for $452,400. It is expected that the equipment will produce net annual cash flows of $58,000 over its 10-year useful life. Annual depreciation will be $45,240. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period yearsBlue Spruce Company is considering investing in new equipment that will cost $1,433,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $25,300 over its useful life. Depreciation expense, using the straight-line rate, is $143.300 per year. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 15.2.) Cash payback period years
- A firm is considering an investment in new equipment that has the following information. Purchase Cost: $132,793 Salvage Value in five years time: $18,337 Useful life is 5 years and depreciation is determined using the straightline method. Expected increased annual cash flows are $52,651 What is the payback period in years? Calculate to 2 decimal placesAverage Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $568,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $71,000. The company's minimum desired rate of return for net present value analysis is 10%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place.fill in…Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $368,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $46,000. The company's minimum desired rate of return for net present value analysis is 15%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place: b.…
- Average rate of return, cash payback period, net present value method for a service company The St. Louis to Seattle Railroad is considering acquiring equipment at a cost of $140,000. The equipment has an estimated life of 10 years and no residua value. It is expected to provide yearly net cash flows of $28,000. The company's minimum desired rate of return for net present value analysis is 10%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 2 3 4 5 6 0.943 1.833 2.673 3.465 4.212 4.917 7 8 9 10 Compute the following: 5.582 6.210 6.802 7.360 0.909 1.736 2.487 3.170 3.791 4.355 Amount to be invested 4.868 5.335 5.759 6.145 b. The cash payback period. 5 years Net present value 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 Present value of annual net cash flows 0.870 1.626 2.283 2.855 3.353 3.785 4.160 4.487 4.772 5.019 0.833 a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your…Current Attempt in Progress Crane Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $184,000, has an estimated useful life of 7 years and a salvage value of zero, and will increase net annual cash flows by $39.050. Click here to view PV table. What is its approximate internal rate of return? (Round answer to O decimal places, eg. 13%) Internal rate of return %Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 450,000 $ 90,000 Annual net cash flows Life of the equipment 10 years Salvage value Discount rate 53 $ 0 7% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: (Round your answer to 1 decimal place.) Multiple Choice 0.2 years < Prev 5 of 5 Lavext a nere to search acer 立