Pena Company is considering an investment of $29,480 that provides net cash flows of $9,100 annually...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pena Company is considering an investment of $29,480 that provides net cash flows of $9,100 annually for four years. (a) If Pena Company requires a 8% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B What is the net present value of this investment? Present Value of Net Cash Flows x PV Factor Net Cash Flows Years 1-4 Net present value Required A Required B > Pena Company is considering an investment of $29,480 that provides net cash flows of $9,100 annually for four years. (a) If Pena Company requires a 8% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B Based on net present value, should Pena Company make this investment? Based on net present value, should Pena Company make this investment? Pena Company is considering an investment of $29,480 that provides net cash flows of $9,100 annually for four years. (a) If Pena Company requires a 8% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B What is the net present value of this investment? Present Value of Net Cash Flows x PV Factor Net Cash Flows Years 1-4 Net present value Required A Required B > Pena Company is considering an investment of $29,480 that provides net cash flows of $9,100 annually for four years. (a) If Pena Company requires a 8% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B Based on net present value, should Pena Company make this investment? Based on net present value, should Pena Company make this investment?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
During its first year, the company spent approximately $300,000 to catch 500 crocodiles. Of these, 300 crocodiles were sold and shipped to customers at a selling price of $1,000 per crocodile....
-
The following accounts appear in the ledger of Polzin Inc. after the books are closed at December 31, 2014. Common Stock (no-par, $1 stated value, 400,000 shares authorized, 250,000 shares...
-
Construct a frequency distribution table for the following set of scores. Include columns for proportion and percentage in your table. Scores: 5, 7, 8, 4, 7, 9, 6, 6, 5, 3 9, 6, 4, 7, 7, 8, 6, 7, 8, 5
-
Even if the system to be evaluated is operational, why might auditors decide to use a workload model to evaluate system efficiency rather than the real workload?
-
Anthony was employed as a forklift operator for Blackburn Construction Company. While on the job, Anthony operated the forklift in a careless manner and in direct violation of Blackburns procedure...
-
Discussion#6 (HEALTHCARE SYSTEMS-1): In this module, you learned about health care information system standards.Using what you learned from the readings and resources, discuss the following sets of...
-
1. A particle has an initial velocity of 3 ft/s to the left at So = 0 ft. Determine its position when t = 3 s if the acceleration is 2 ft/s? to the right. A) 0.0 ft C) 18.0 ft B) 6.0 ft + D) 9.0 ft
-
Brief overview of the two models: Traditional Insurance-Based Practice and Direct Primary Care Model.
-
How do advancements in technology and digital media impact the creation, dissemination, and preservation of ethnic art forms, particularly in indigenous and diasporic communities ? Explain
-
replaces characters at indices indx to indx+num-1 with a copy of subStr #include #include using namespace std; int main() { string passwdStr; int idx; cin >> passwdStr; idx = 0; /* Your code goes...
-
Under US GAAP, how is Construction in Progress (CIP) typically classified and reported for long-term contracts?
-
In a salary salary range with minimum of $70,000 with a midpoint of $60,000, an employee with a current salary of $53,000 have a compa-ratio of __________. Use this formula to calculate it: Equation:...
-
3. The regional manager for a large corporation claims that salespeople are averaging less than 15 sales contact per week, with a variance of 9 sales contact. To increase this figure, 36 salespeople...
-
A Bloomberg Businessweek subscriber study asked, In the past 12 months, when traveling for business, what type of airline ticket did you purchase most often? A second question asked if the type of...
Study smarter with the SolutionInn App