Question: Hello I need help with this question please Brett Collins is reviewing his company's investment in a cement plant. The company paid $14,600,000 five years

Hello I need help with this question please

Hello I need help with this question please Brett Collins is reviewinghis company's investment in a cement plant. The company paid $14,600,000 five

Brett Collins is reviewing his company's investment in a cement plant. The company paid $14,600,000 five years ago to acquire the plant. Now top management is considering an opportunity to sell it. The president wants to know whether the plant has met original expectations before he decides its fate. The company's discount rate for present value computations is 12 percent. Expected and actual cash flows follow: (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Expected $3, 360,000 $4, 950,000 $4, 600,000 $5, 130,000 $4, 280,000 Actual 2, 690,000 2,990,000 4, 890,000 3, 880,000 3,550,000 Required a.&b. Compute the net present value of the expected and actual cash flows as of the beginning of the investment. (Negative amounts should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar.) a. Net present value (expected) b. Net present value (actual)Perez Auto Repair. Inc. is evaluating a project to purchase equipment that will not only expand the company's capacity but also improve the quality of its repair services. The board of directors requires all capital investments to meet or exceed the minimum requirement of a 10 percent rate of return. However, the board has not clearly dened the rate of return. The president and controller are pondering two different rates of return: unadjusted rate of return and internal rate of return. The equipment. which costs $109.000. has a life expectancy of six years. The increased net prot per year will be approximately $6,000, and the increased cash inflow per year will be approximately $24,293. {PV of $1 and PVA of $1] (Use appropriate factorts) from the tables provided} Required a-'l. Determine the unadjusted rate of return and (use average investment} to evaluate this project. [Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45\" a-2. Based on the unadjusted rate of return. should the company invest in the equipment? b-t. What is the approximate internal rate of return of this project? b-2. Based on the internal rate of return, should the company invest in the equipment? 1:. Which method is better for this capital investment decision? _ Unadjusted rate of return a2. Should the oomjnanvjtr invest in the equipment? _ Intemel rate of return . Should the company invest in the equipment? 0. Which method is better for this capital investment decision

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