Oriole Corp. management is planning to convert an existing warehouse into a new plant that will...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Oriole Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $6,736,954. It will result in additional cash flows of $1,903,200 for each of the next eight years. The discount rate is 10.25 percent. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) a. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25.) The project's payback period is years b. What is the NPV for this project? (Round intermediate calculations and final answer to O decimal places, e.g. 1,251. Do not round discount factor values. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) The project's NPV is $ c. What is the IRR? (Round answer to 3 decimal places, e.g. 15.251%.) Oriole Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $6,736,954. It will result in additional cash flows of $1,903,200 for each of the next eight years. The discount rate is 10.25 percent. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) a. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25.) The project's payback period is years b. What is the NPV for this project? (Round intermediate calculations and final answer to O decimal places, e.g. 1,251. Do not round discount factor values. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) The project's NPV is $ c. What is the IRR? (Round answer to 3 decimal places, e.g. 15.251%.)
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Prove this statement: Let f be extended real-valued measurable function on a measurable set D. If f is integrable on D, then the set {D: f 0} is a o-finite set.
-
Enzymatic reactions are used extensively to characterize biologically mediated reactions in environmental engineering. Proposed rate expressions for en enzymatic reaction are given below where [S] is...
-
Determine the equivalent spring constant and the natural frequency of vibration of the system shown in Fig. 2.87. Beam, EI m 0000 0000 k k k FIGURE 2.87 Beam connected to mass and springs.
-
The DeMeo Corporation had both common stock and preferred stock outstanding from 20x5 through 20x7. Information about each stock for the three years is as follows: The company paid $140,000,...
-
The accounting records of Hampton Company provided the data below ($ in 000s). Required: Prepare a reconciliation of net income to net cash flows from operatingactivities. Net income Depreciation...
-
plz help and thank you so much \f
-
Here are the expected returns on two stocks: Probability 0.2 0.6 0.2 X -20% 20 40 Returns Y 10% 15 20 If you form a 60-40 portfolio of the two stocks (60% of X and 40% of Y), what is the portfolio's...
-
Explain Quality Control. What are the Elements of quality control? Write a note on the Eligibility of a person to perform an engagement review. (Advanced Audit and Assurance)
-
Give me an explanation regarding the Obtaining and Accepting Professional Appointments(Advanced Audit and Assurance).
-
b. a. 3. Write the names of the functional groups in the following molecules. [2 points] a. CH3CH2CH2-OH b. HC=CH2 122 C. .COOH 4. Convert the following line structures to condensed structures. Write...
-
Read the following journal (a) explain how the ethical dilemma can affect both the organization and society, and (b) explain what changes could have been made to prevent this ethical dilemma? area if...
-
5.62 A noise process has a power spectral density given by S, (f) = 10-8 (1-1), If <108 100 0, If > 108 VOLIN This noise is passed through an ideal bandpass filter with a bandwidth of 2 MHz, centered...
-
Dans la mthode par comparaison, les ajustements sont utiles : a. Aucune des rponses proposes b. Afin de comparer l'immeuble sujet des immeubles qui sont vritablement comparables c. Afin de dterminer...
-
Review Exhibit 11.4. Analyze each product on the graph according to the characteristics that influence the rate of adoption. For example, what can you conclude from the data about the relative...
-
Compute unit contribution margin and contribution margin ratio (Learning Objective 1) \\ Use the information from the Bay Cruiseline Data Set to compute the following:} a. What is the contribution...
-
Find target profit volume (Learning Objective 2) Use the information from the Bay Cruiseline Data Set. If Bay Cruiseline has a target operating income of \(\$ 40,000\) per month, how many dinner...
-
Changes in sales price and variable costs (Learning Objective 3)} Use the information from the Bay Cruiseline Data Set. 1. Suppose Bay Cruiseline cuts its dinner cruise ticket price from \(\$ 60\) to...
Study smarter with the SolutionInn App