Oriole Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that...
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Oriole Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $333,000 each year for three years. If the discount rate is 17.5 percent, what is the NPV on this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) The NPV is $ Cullumber, Inc. management is considering purchasing a new machine at a cost of $4,180,000. They expect this equipment to produce cash flows of $789,390, $ 901,050, $853,030, $ 1,096,700, $ 1,225,960, and $ 1,273,400 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) The NPV is $ Sunland Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project? Year 0 1 2 3 4 5 Cash Flow -$ 3,543,700 939,510 985,900 1,117,500 1,164,660 1,384,500 Management of Ivanhoe Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this investment will be $75,000 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) NPV $ Oriole, Inc., is purchasing machinery at a cost of $ 2,952,720. The company's management expects the machinery to produce cash flows of $822,410, $ 1,244,160, and $ 1,596,150 over the next three years, respectively. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25.) Payback period is years Sunland Specialties just purchased inventory-management computer software at a cost of $1,518,950. Cost savings from the investment over the next six years will produce the following cash flow stream: $ 181,340, $ 326,240, $ 332,600, $ 587,250, $ 802,320, and $ 687,740. What is the payback period on this investment? (Round answer to 2 decimal places,e.g. 15.25.) Payback period is years Blossom Corp. management is expecting a project to generate after-tax income of $ 75,700 in each of the next three years. The average book value of the project's equipment over that period will be $ 197,970. If the firm's investment decision on any project is based on an ARR of 37.5 percent. (Round answer to 1 decimal place, e.g. 5.2%.) What is the project's accounting rate of return? Accounting rate of return is Should the firm accept this project? The firm should the project. % Oriole Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $333,000 each year for three years. If the discount rate is 17.5 percent, what is the NPV on this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) The NPV is $ Cullumber, Inc. management is considering purchasing a new machine at a cost of $4,180,000. They expect this equipment to produce cash flows of $789,390, $ 901,050, $853,030, $ 1,096,700, $ 1,225,960, and $ 1,273,400 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) The NPV is $ Sunland Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project? Year 0 1 2 3 4 5 Cash Flow -$ 3,543,700 939,510 985,900 1,117,500 1,164,660 1,384,500 Management of Ivanhoe Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this investment will be $75,000 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) NPV $ Oriole, Inc., is purchasing machinery at a cost of $ 2,952,720. The company's management expects the machinery to produce cash flows of $822,410, $ 1,244,160, and $ 1,596,150 over the next three years, respectively. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25.) Payback period is years Sunland Specialties just purchased inventory-management computer software at a cost of $1,518,950. Cost savings from the investment over the next six years will produce the following cash flow stream: $ 181,340, $ 326,240, $ 332,600, $ 587,250, $ 802,320, and $ 687,740. What is the payback period on this investment? (Round answer to 2 decimal places,e.g. 15.25.) Payback period is years Blossom Corp. management is expecting a project to generate after-tax income of $ 75,700 in each of the next three years. The average book value of the project's equipment over that period will be $ 197,970. If the firm's investment decision on any project is based on an ARR of 37.5 percent. (Round answer to 1 decimal place, e.g. 5.2%.) What is the project's accounting rate of return? Accounting rate of return is Should the firm accept this project? The firm should the project. %
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Of course Lets calculate the NPV for all the investment projects 1 Oriole Corp Initial Investment 240000 Cash Flows 60000 60000 60000 60000 and 105000 ... View the full answer
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Posted Date:
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