Pina Colada Manufacturing Company is considering three new projects, each requiring an equipment investment of $25,600....

  

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Pina Colada Manufacturing Company is considering three new projects, each requiring an equipment investment of $25,600. Each project will last for 3 years and produce the following cash flows. Year AA BB CC $8,200 $11.100 $12.200 10,200 11,100 11,200 3. 16,200 11,100 10,200 Total $34,600 $33,300 $33,600 The salvage value for each of the projects is zero. Pin Colada uses straight-line depreciation. Pina Colada will not accept any project with a payback period over 2.2 years. Pina Colada's minimum required rate of return is 12%. Click here to view PV tables (a) Compute each project's payback period. (Round answers to 2 decimal places, eg 52.75) AA BB CC Compute each project's payback period. (Round answers to 2 decimal places, eg. 52.75.) AA BB CC Payback period years уears years Indicating the most desirable project and the least desirable project using this method. Most desirable Least desirable Novak Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each: Project Turtle Project Snake Capital investment $1.160,000 $680,000 Annual cash flows 191,000 116,000 Estimated useful life 10 years 10 years Novak Company uses a discount rate of 9% to evaluate both projects. Click here to view PV tables (a) Calculate the net present value of both projects. (Use the above table) (Round factor values to 5 decimal places, es 1.25124 and final answers to O decimal places, eg. 5,275) Project Turtle Project Snake Net present value Pina Colada Manufacturing Company is considering three new projects, each requiring an equipment investment of $25,600. Each project will last for 3 years and produce the following cash flows. Year AA BB CC $8,200 $11.100 $12.200 10,200 11,100 11,200 3. 16,200 11,100 10,200 Total $34,600 $33,300 $33,600 The salvage value for each of the projects is zero. Pin Colada uses straight-line depreciation. Pina Colada will not accept any project with a payback period over 2.2 years. Pina Colada's minimum required rate of return is 12%. Click here to view PV tables (a) Compute each project's payback period. (Round answers to 2 decimal places, eg 52.75) AA BB CC Compute each project's payback period. (Round answers to 2 decimal places, eg. 52.75.) AA BB CC Payback period years уears years Indicating the most desirable project and the least desirable project using this method. Most desirable Least desirable Novak Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each: Project Turtle Project Snake Capital investment $1.160,000 $680,000 Annual cash flows 191,000 116,000 Estimated useful life 10 years 10 years Novak Company uses a discount rate of 9% to evaluate both projects. Click here to view PV tables (a) Calculate the net present value of both projects. (Use the above table) (Round factor values to 5 decimal places, es 1.25124 and final answers to O decimal places, eg. 5,275) Project Turtle Project Snake Net present value Pina Colada Manufacturing Company is considering three new projects, each requiring an equipment investment of $25,600. Each project will last for 3 years and produce the following cash flows. Year AA BB CC $8,200 $11.100 $12.200 10,200 11,100 11,200 3. 16,200 11,100 10,200 Total $34,600 $33,300 $33,600 The salvage value for each of the projects is zero. Pin Colada uses straight-line depreciation. Pina Colada will not accept any project with a payback period over 2.2 years. Pina Colada's minimum required rate of return is 12%. Click here to view PV tables (a) Compute each project's payback period. (Round answers to 2 decimal places, eg 52.75) AA BB CC Compute each project's payback period. (Round answers to 2 decimal places, eg. 52.75.) AA BB CC Payback period years уears years Indicating the most desirable project and the least desirable project using this method. Most desirable Least desirable Novak Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each: Project Turtle Project Snake Capital investment $1.160,000 $680,000 Annual cash flows 191,000 116,000 Estimated useful life 10 years 10 years Novak Company uses a discount rate of 9% to evaluate both projects. Click here to view PV tables (a) Calculate the net present value of both projects. (Use the above table) (Round factor values to 5 decimal places, es 1.25124 and final answers to O decimal places, eg. 5,275) Project Turtle Project Snake Net present value Pina Colada Manufacturing Company is considering three new projects, each requiring an equipment investment of $25,600. Each project will last for 3 years and produce the following cash flows. Year AA BB CC $8,200 $11.100 $12.200 10,200 11,100 11,200 3. 16,200 11,100 10,200 Total $34,600 $33,300 $33,600 The salvage value for each of the projects is zero. Pin Colada uses straight-line depreciation. Pina Colada will not accept any project with a payback period over 2.2 years. Pina Colada's minimum required rate of return is 12%. Click here to view PV tables (a) Compute each project's payback period. (Round answers to 2 decimal places, eg 52.75) AA BB CC Compute each project's payback period. (Round answers to 2 decimal places, eg. 52.75.) AA BB CC Payback period years уears years Indicating the most desirable project and the least desirable project using this method. Most desirable Least desirable Novak Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each: Project Turtle Project Snake Capital investment $1.160,000 $680,000 Annual cash flows 191,000 116,000 Estimated useful life 10 years 10 years Novak Company uses a discount rate of 9% to evaluate both projects. Click here to view PV tables (a) Calculate the net present value of both projects. (Use the above table) (Round factor values to 5 decimal places, es 1.25124 and final answers to O decimal places, eg. 5,275) Project Turtle Project Snake Net present value

Answer rating: 100% (QA)

Project AA Year Cash flow Cummulative cash flow 0 25600 25600 1 8200 17400 2 10200 7200 3 16200 9000 ... View the full answer