Question: I need help in this question. Please answer 100% correctly 2) Brett Collins is reviewing his company's investment in a cement plant. The company paid

I need help in this question. Please answer 100% correctly

I need help in this question. Please answer 100% correctly 2) Brett

2)

Collins is reviewing his company's investment in a cement plant. The company

Brett Collins is reviewing his company's investment in a cement plant. The company paid $14,400,000 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 9 percent. Expected and actual cash flows follow: (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Expected Actual Year 1 $3,370,000 2,610,000 Year 2 $5,010,000 3,040,000 Year 3 $4,620,000 4,880,000 Year 4 $5,100,000 3,890,000 Year 5 $4,220,000 ,560,000 3 Required 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) Seth Fitch owns a small retail ice cream parlor. He is considering expanding the business and has identified two attractive alternatives. One involves purchasing a machine that would enable Mr. Fitch to offer frozen yogurt to customers. The machine would cost $8,070 and has an expected useful life of three years with no salvage value. Additional annual cash revenues and cash operating expenses associated with selling yogurt are expected to be $6,130 and $860, respectively. Alternatively, Mr. Fitch could purchase for $10,080 the equipment necessary to serve cappuccino. That equipment has an expected useful life of four years and no salvage value. Additional annual cash revenues and cash operating expenses associated with selling cappuccino are expected to be $8,410 and $2,280, respectively. Income before taxes earned by the ice cream parlor is taxed at an effective rate of 20 percent. Required a. Determine the payback period and unadjusted rate of return (use average investment) for each alternative. (Round your answers to 2 decimal places.) Alternative 1 years Alternative 2 years Payback period Unadjusted rate of return %

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