Question: begin{tabular}{crr} Year & Amount hline Year 1 & $ & 35,000 Year 2 & & 30,000 Year 3 & & 20,000

 \begin{tabular}{crr} Year & Amount \\ \hline Year 1 & $ &35,000 \\ Year 2 & & 30,000 \\ Year 3 & &20,000 \\ Year 4 & & 12,000 \\ \cline { 2 -3 } Total & $97,000 \\ \hline \end{tabular} 1. Net present value.

\begin{tabular}{crr} Year & Amount \\ \hline Year 1 & $ & 35,000 \\ Year 2 & & 30,000 \\ Year 3 & & 20,000 \\ Year 4 & & 12,000 \\ \cline { 2 - 3 } Total & $97,000 \\ \hline \end{tabular} 1. Net present value. (Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is 2. Payback period. (Round your answer to two decimal places.) The number of years for the payback period is 3. Discounted payback period. A. 3.75 B. 3.71 C. 3.79 D. Amount can not be determined 4. Internal rate of return (using the interpolation method). (Use a trial-and-error approach and straight-line interpolation as necessary. Round your answer to the nearest hundredth of a percent, X.XX%.) The internal rate of return (IRR) is % 5. Accrual accounting rate of return based on net initial investment (Assume straight-line depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return.) (Round your final answer to the nearest hundredth of a percent, X.XX\%.) The accrual accounting rate of return (AARR) is % Calculate the following for the special purpose bottling machine: 1. Net present value 2. Payback period 3. Discounted payback period 4. Internal rate of return (using the interpolation method) 5. Accrual accounting rate of return based on net initial investment (Assume straight-line depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return.) America Cola uses a required rate of return of 14% in its capital budgeting decisions. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. \begin{tabular}{crr} Year & Amount \\ \hline Year 1 & $ & 35,000 \\ Year 2 & & 30,000 \\ Year 3 & & 20,000 \\ Year 4 & & 12,000 \\ \cline { 2 - 3 } Total & $97,000 \\ \hline \end{tabular} 1. Net present value. (Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is 2. Payback period. (Round your answer to two decimal places.) The number of years for the payback period is 3. Discounted payback period. A. 3.75 B. 3.71 C. 3.79 D. Amount can not be determined 4. Internal rate of return (using the interpolation method). (Use a trial-and-error approach and straight-line interpolation as necessary. Round your answer to the nearest hundredth of a percent, X.XX%.) The internal rate of return (IRR) is % 5. Accrual accounting rate of return based on net initial investment (Assume straight-line depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return.) (Round your final answer to the nearest hundredth of a percent, X.XX\%.) The accrual accounting rate of return (AARR) is % Calculate the following for the special purpose bottling machine: 1. Net present value 2. Payback period 3. Discounted payback period 4. Internal rate of return (using the interpolation method) 5. Accrual accounting rate of return based on net initial investment (Assume straight-line depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return.) America Cola uses a required rate of return of 14% in its capital budgeting decisions. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!