Gonzalez Company is considering two new projects with the following net cash flows. The company's required...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Project 2 Initial investment $(42,000) $(78,000) 1. 10,500 35,000 2. 3. 27,800 18,500 15,000 35,000 a. Compute payback period for each project. Based on payback period, which project is preferred? b. Compute net present value for each project. Based on net present value, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute payback period for each project. Based on payback period, which project is preferred? (Cumulative net cash outflows must be entered with a minus sign. Do not round your intermediate calculations. Round your Payback Period answer to 2 decimal places.) Project 1 Project 2 Year Net Cash Flows Cumulative Net Cash Net Cash Flows Flows Cumulative Net Cash Flows Initial investment $ (42,000) $ (78,000) Year 1 Year 2 Year 3 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? Required A years years Required B > Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Initial investment $(42,000) 1. 10,500 27,800 18,500 2. 3. Project 2 $(78,000) 35,000 15,000 35,000 a. Compute payback period for each project. Based on payback period, which project is preferred? b. Compute net present value for each project. Based on net present value, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute net present value for each project. Based on net present value, which project is preferred? (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Project 1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Project 2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows Present Value Factor Present Value of Net Cash Flows Based on net present value, which project is preferred? < Required A Required B > Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Project 2 Initial investment $(42,000) $(78,000) 1. 10,500 35,000 2. 3. 27,800 18,500 15,000 35,000 a. Compute payback period for each project. Based on payback period, which project is preferred? b. Compute net present value for each project. Based on net present value, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute payback period for each project. Based on payback period, which project is preferred? (Cumulative net cash outflows must be entered with a minus sign. Do not round your intermediate calculations. Round your Payback Period answer to 2 decimal places.) Project 1 Project 2 Year Net Cash Flows Cumulative Net Cash Net Cash Flows Flows Cumulative Net Cash Flows Initial investment $ (42,000) $ (78,000) Year 1 Year 2 Year 3 Payback period Project 1 Payback period Project 2 Payback period Based on payback period, which project is preferred? Required A years years Required B > Gonzalez Company is considering two new projects with the following net cash flows. The company's required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flows Year Project 1 Initial investment $(42,000) 1. 10,500 27,800 18,500 2. 3. Project 2 $(78,000) 35,000 15,000 35,000 a. Compute payback period for each project. Based on payback period, which project is preferred? b. Compute net present value for each project. Based on net present value, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute net present value for each project. Based on net present value, which project is preferred? (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Project 1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Project 2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows Present Value Factor Present Value of Net Cash Flows Based on net present value, which project is preferred? < Required A Required B >
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
the IP address are for illustrative purposes only. Use your own IP addressing scheme (You may use classful and classless IP addresses as per your preference). Note that students need to attach the...
-
As you learn more about leadership in this course, what steps can you take to gain more experience as a future leader? Identify three specific ways to gain leadership experience at this point in your...
-
For the particle in a cubic box, what is the degree of degeneracy of the energy levels with the following values of 8ma2E/h2? (a) 12; (b) 14; (c) 27.
-
Burger King announced it would phase abused chicken out of its supply chain by 2024. The new standards include the requiring of higher-welfare strains of chickens, a reduction in the stocking density...
-
1. How will you characterize Tupperwares distribution strategy in relation to the theoretical models? 2. What are the advantages and disadvantages of Tupperwares distribution model? 3. How do you...
-
The resource dependence theory proposes that organizational decisions are influenced by both internal and external agents who control critical resources. Question 1 1 options: True False
-
Difference between even, odd, periodic, non-periodic, impulse step and ramp function time scaling , time shifting , sampling, contization.
-
What is the result of a polychromatic X-ray beam being hardened at different rates based on the rotational position of the tube/detector?
-
Henrty Williams has prepared the following product - line income data for their business and because it looks like product C is losing money, they are deciding whether to eliminate product c from...
-
How many protons and neutrons are there in the nucleus of a. oxygen-16 and b. tin-120. Write the isotope symbol for each of the above elements.
-
On March 2 , Blue Spruce Company sold $ 9 9 7 , 0 0 0 of merchandise on account to Oriole Company, terms 3 1 0 , ???? 3 0 . The cost of the merchandise sold was $ 5 5 3 , 0 0 0 . ( Credit account...
-
Job cost sheets for incomplete jobs in Work in Process on February 1 showed the following: Job # 3 6 Job # 3 7 Direct materials $ 4 8 0 $ 3 9 0 Direct labor 5 6 0 3 4 0 Manufacturing overhead 8 4 0 5...
-
17. (a) Show that in the ground state of the hydrogen atom the speed of the electron can be written as v = ac where a is the fine-structure constant. (b) From the value of a what can you conclude...
-
What will be the final value of DI after executing the following piece of code? Execute the instructions dependently one after another. CLD MOU CX,OFOH MOU AX.02874H MOU DI,01000H MOU ES, DI SUB...
-
Estimate the ending inventory by the gross profit method, given the following data: beginning inventory, \(\$ 40,000\); net purchases, \(\$ 100,000\); net sales, \(\$ 112,000\); average gross profit...
-
Use your operating systems built-in capability to encrypt a file. Store the enciy'pted file in a folder that can be shared with other users on that computer. Then create a new user account. Assign it...
-
Why do companies using LIFO in a perpetual inventory system often restate their ending inventory at the per-unit costs that result from applying periodic LIFO costing procedures?
Thieme Test Prep For The USMLe Medical Physiology Q And A 1st Edition - ISBN: 1626233845 - Free Book
Study smarter with the SolutionInn App