Vaughn was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $405,000, has a useful life of 7 years with a salvage value of $14,000. Depreciation is by the straight-line metho During the life of the investment, annual net income and net annual cash flows are expected to be $26,397 and $81,000 respectively. Vaughn's 7% cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to 0 decimal places, e.g. 25.) Cash payback period years
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- The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given here. The company’s cost of capital is 10%. Should the firm operate the truck until the end of its 5-year physical life? If not, then what is its optimal economic life? Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project?Vaughn was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $405,000, has a useful life of 7 years with a salvage value of $14,000. 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 $26,397 and $81,000 respectively. Vaughn's 7% cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to O decimal places, e.g. 25.) Cash payback period eTextbook and Media (c2) 5 Annual rate of return years Compute the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.) % Attempts: 2 of 5 usedCarper was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $395,000, had a useful life of 7 years with a salvage value of $15,000. 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 $22,960 and $79,000 respectively. Carper's 8% cost of capital is also the required rate of return on the investment. Cash payback period is 5 years. Annual rate of return is 11.2%. Compute Net present value. no image based solution please
- Vaughn was presented with a second capital investment that provided similar production facilities as the first one. This investment cost \( \$ 395,000 \), had a useful life of 7 years with a salvage value of \(\$ 16,000 \). 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 \( \$ 23,838 \) and \(\$ 79,000 V) respectively. Vaughn's \( 7 \% \) cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to 0 decimal places, e.s. 25.) Cash payback period years Using the discounted cash flow technique, compute the net present value.Sunland Company is considering a capital investment of $398,400 in additional productive facilities. The new machinery is expected to have a useful life of 6 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annuali net income and net annual cash flows are expected to be $21,912 and $83.000, respectively. Sunland has an 6% cost of capital rate. which is the required rate of return on the investment. (a1) Your answer has been saved. See score details after the due date. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 2.25.) Cash payback period Using the discounted cash flow technique, compute the net present value. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places eg. 589.71.) Net present value 48 years Save for Later Attempts: 0 of 1 used Submit AnswerWindsor Company is considering two capital expenditures. Relevant data for the projects are as follows: Project Initial investment Annual cash inflow Life of project Salvage value A $202,003 $41,080 6 years $0 B $306,910 $49,130 9 years $0 Windsor Company uses the straight-line method to depreciate its assets. Calculate the internal rate of return for each project. (For calculation purposes, use 5 decimal places as displayed in the facto provided, e.g. 1.25125. Round answers to O decimal places, e.g. 15%.)
- Sheridan Company is considering a capital investment of $183,600 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 $10,557 and $51,000, respectively. Sheridan has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view the factor table. (a) Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52%.) Annual rate of return (b) years Net present value % Using the discounted cash flow technique, compute the net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer for present value…Vaughn Company is considering a capital investment of $378,400 in additional productive facilities. The new machinery is expected to have a useful life of 6 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 $18,920 and $86,000, respectively. Vaughn has an 7% cost of capital rate, which is the required rate of return on the investment. (a1) Your answer is correct. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 2.25.) Cash payback period eTextbook and Media (a2) 4.4 Annual rate of return years Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 2.25%.) Attempts: 1 of 5 used %Vaughn Company is considering a capital investment of $378,400 in additional productive facilities. The new machinery is expected to have a useful life of 6 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 $18,920 and $86,000, respectively. Vaughn has an 7% cost of capital rate, which is the required rate of return on the investment. (a1) Compute the cash payback period. (Round answer to 2 decimal places, e.g. 2.25.) Your answer is correct. Cash payback period (a2) eTextbook and Media (b) Your answer is correct. Annual rate of return Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 2.25%.) eTextbook and Media 4.4 years Net present value $ 10 Attempts: 1 of 5 used % Attempts: 1 of 5 used Using the discounted cash flow technique, compute the net present value. (Round present value factor calculations to 5…
- Vilas Company is considering a capital investment of $202,400 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 $11,638 and $46,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view the factor table. (a) Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period Annual rate of return Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52%.) (b) 4.4 Net present value 5.75 years Using the discounted cash flow technique, compute the net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer for present…Vaughn Company is considering a capital investment of $378,400 in additional productive facilities. The new machinery is expected to have a useful life of 6 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 $18,920 and $86,000, respectively. Vaughn has an 7% cost of capital rate, which is the required rate of return on the investment. (a1) Compute the cash payback period. (Round answer to 2 decimal places, e.g. 2.25.) Your answer is correct. Cash payback period (a2) eTextbook and Media (b) Your answer is correct. Annual rate of return Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 2.25%.) eTextbook and Media Your answer is correct. 4.4 years Net present value $ 10 % Attempts: 1 of 5 used Using the discounted cash flow technique, compute the net present value. (Round present value factor calculations to…A potential investment has a cost of $542,500 and a useful life of 7 years. Annual cash sales from the investment are expected to be $225,225 and annual cash operating expenses are expected to be $88,725. The expected salvage value at the end of the investment's life is $70,000. The company uses straight-line depreciation for all assets based on the full cost of the assets. The company has a before-tax discount rate of 17%, an after-tax discount rate of 14%, and a tax rate of 40%. 1. Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.) 2. Assume the company wants to consider this investment after-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.)
