Question: fill out two charts (a and b) and C. A Excess Present Value Index and Average Rate of Return Highpoint Company is evaluating five different

 fill out two charts (a and b) and C. A Excess
Present Value Index and Average Rate of Return Highpoint Company is evaluating
fill out two charts (a and b) and C. five different capital expenditure proposals. The company's hurdle rate for net present
value analyses is 12%. A 10% salvage value is expected from each
of the investments. Information on the five proposals is as follows: Proposal
Required investment PV at 12% of After-Tax Cash Flows Avg. Annual Net

A Excess Present Value Index and Average Rate of Return Highpoint Company is evaluating five different capital expenditure proposals. The company's hurdle rate for net present value analyses is 12%. A 10% salvage value is expected from each of the investments. Information on the five proposals is as follows: Proposal Required investment PV at 12% of After-Tax Cash Flows Avg. Annual Net Income from Investment $285,000 $325,030 $37,400 B 215,000 251,780 26.000 C 175,000 188,040 19,200 D 195,000 231,300 27,600 E 143,000 151,990 14,960 a. Compute the excess present value index for each of the five proposals. Round answers to three decimal places. Proposal Excess PV Index 0 B C 0 D 0 E 0 b. Compute the average rate of return for each of the five proposals. Round answers to one decimal place. For example, 0.4567 equals 45.7% Proposal Avg Rate of Return ON O A B Type here to search o RE hp # Return to course Business Course D 0 E 0 b. Compute the average rate of return for each of the five proposals. Round answers to one decimal place. For example, 0.4567 equals 45.7% Proposal Avg. Rate of Return 09 09 0% 0% 096 B D E Assume that Highpoint will commit no more than $500,000 to new capital expenditure proposals. Using the excess present value index, which proposals would be accepted. Select the best answer. Now using the average rate of return, which proposals would be accepted? Select the best answer. Check Previous Save Answers Type here to search ORI hp ? 75 15 OI 16 B C 215,000 175,000 195,000 143,000 251,780 188,040 231,300 151,990 D E a. Compute the excess present value index for each of the five proposals. Round answers to three decimal places. Proposal Excess PV Index 0 B 0 0 D 0 E 0 b. Compute the average rate of return for each of the five proposals. Round answers to one decimal place. For example, 0.4567 equals 45.7% Proposal Avg. Rate of Return 0 % 0 % B 096 D 0 % E 096 C. Assume that Highpoint will commit no more than $500,000 to new capital ex Using the excess present value index, which proposals would be accepted. Sele Type here to search O D 0 % E 0 % C. Assume that Highpoint will commit no more than $500,000 to new capital expenditure proposals. Using the excess present value index, which proposals would be accepted. Select the best answer. Now using the average rate of return, which proposals would be accepted? Select the best answer. e Check Previous B Save Answers Type here to search o R C 0 % 096 096 Proposals A and B Proposals B and E Proposals B and D Proposals C and E Proposals A and D will commit no more than $500,000 to new capital expenditure proposals. value index, which proposals would be accepted. Select the best answer. ate of return, which proposals would be accepted? Select the best answer. Check Previous Save Answers Type here to search o BE A Excess Present Value Index and Average Rate of Return Highpoint Company is evaluating five different capital expenditure proposals. The company's hurdle rate for net present value analyses is 12%. A 10% salvage value is expected from each of the investments. Information on the five proposals is as follows: Proposal Required investment PV at 12% of After-Tax Cash Flows Avg. Annual Net Income from Investment $285,000 $325,030 $37,400 B 215,000 251,780 26.000 C 175,000 188,040 19,200 D 195,000 231,300 27,600 E 143,000 151,990 14,960 a. Compute the excess present value index for each of the five proposals. Round answers to three decimal places. Proposal Excess PV Index 0 B C 0 D 0 E 0 b. Compute the average rate of return for each of the five proposals. Round answers to one decimal place. For example, 0.4567 equals 45.7% Proposal Avg Rate of Return ON O A B Type here to search o RE hp # Return to course Business Course D 0 E 0 b. Compute the average rate of return for each of the five proposals. Round answers to one decimal place. For example, 0.4567 equals 45.7% Proposal Avg. Rate of Return 09 09 0% 0% 096 B D E Assume that Highpoint will commit no more than $500,000 to new capital expenditure proposals. Using the excess present value index, which proposals would be accepted. Select the best answer. Now using the average rate of return, which proposals would be accepted? Select the best answer. Check Previous Save Answers Type here to search ORI hp ? 75 15 OI 16 B C 215,000 175,000 195,000 143,000 251,780 188,040 231,300 151,990 D E a. Compute the excess present value index for each of the five proposals. Round answers to three decimal places. Proposal Excess PV Index 0 B 0 0 D 0 E 0 b. Compute the average rate of return for each of the five proposals. Round answers to one decimal place. For example, 0.4567 equals 45.7% Proposal Avg. Rate of Return 0 % 0 % B 096 D 0 % E 096 C. Assume that Highpoint will commit no more than $500,000 to new capital ex Using the excess present value index, which proposals would be accepted. Sele Type here to search O D 0 % E 0 % C. Assume that Highpoint will commit no more than $500,000 to new capital expenditure proposals. Using the excess present value index, which proposals would be accepted. Select the best answer. Now using the average rate of return, which proposals would be accepted? Select the best answer. e Check Previous B Save Answers Type here to search o R C 0 % 096 096 Proposals A and B Proposals B and E Proposals B and D Proposals C and E Proposals A and D will commit no more than $500,000 to new capital expenditure proposals. value index, which proposals would be accepted. Select the best answer. ate of return, which proposals would be accepted? Select the best answer. Check Previous Save Answers Type here to search o BE

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 Finance Questions!