Question: Please help with making quick corrections on these questions. Required information Use the following information for the Quick Study below. [The following information applies to
Please help with making quick corrections on these questions.







Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its investments. Investment A1 $ (330,000) Initial investment Expected net cash flows in year: 1 2 3 190,000 98,000 77,000 QS 25-11 Net present value LO P3 Compute this investment's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) X Answer is complete but not entirely correct. Cash Flow Year 1 00 $ 190,000 98,000 77,000 $ 365.000 Year 2 Year 3 Present Value of 1 Present Value at 9% 0.9174 $ 174,312 X 0.8417 82,485 & 0.7722 59.458 Totals $ 316,255 Amount invested Net present value (330,000) (13,745) $ Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its investments. Investment Al $ (330,000) Initial investment Expected net cash flows in year: 2 3 190,000 98,000 77,000 QS 25-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $33,000. Compute the investment's net present value. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Answer is complete but not entirely correct. Cash Flow Present Value of 1 Present Value at 9% 0.9174 $ 174,312 X Year 1 0.8417 Year 2 Year 3 $ 190,000 98,000 77,000 X $ 365,000 82,485 X 84,940 X 0.7722 Totals $ 341,737 Amount invested Net present value (330,000) 11,737 $ Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $29,160 and provides expected cash inflows of $9,600 annually for four years. If Park Co. requires a 8% return on its investments. QS 25-3 Internal rate of return LO P4 1-a. What is the internal rate of return? (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.) Present value factor Internal rate of return 3.0375 12% 1-b. Based on its internal rate of return, should Park Co. make the investment? O Yes Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its investments. Investment A1 $(330,000) Initial investment Expected net cash flows in year: 190,000 98,000 77,000 QS 25-11 Net present value LO P3 Compute this investment's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Answer is complete but not entirely correct. Present Value Present Value of 1 at 9% 0.9174 $ Cash Flow $ 190,000 98,000 77,000 Year 1 174,312 x Year 2 Year 3 0.8417 0.7722 82,485 X 59,458 Totals 365,000 $ 316,255 Amount invested Net present value (330,000) (13,745) $ Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its investments. Investment A1 $(330,000) Initial investment Expected net cash flows in year: 1 2 3 190,000 98,000 77,000 QS 25-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $33,000. Compute the investment's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Year 1 Year 2 Year 3 Answer is complete but not entirely correct. Cash Present Flow Value of 1 Present Value at 9% $ 190,000 0.9174$ 174,312 98,000 0.8417 82,485 77,000 X 0.7722 84,940 $ 365,000 341,737 (330,000) 11,737 Totals $ Amount invested Net present value $ Following is Information on two alternative Investments being considered by Jolee Company. The company requires a 12% return from Its Investments. (PV of $1, FV of $1, PVA of $1 and FVA of $1). (Use approprlate factor(s) from the tables provided.) Project $(171, 325) Project B $(143, 960) Initial investment Expected net cash flows in year: 1 2 41,000 54,000 80,295 76,400 58,000 39,000 51,000 62,000 73,000 22,000 5 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability Index, if the company can only select one project, which should it choose? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. Project A S 171,325 Initial Investment Chart Values are Based on: Year 12% Cash Inflow 41,000 x PV Factor 1 X 0.8930 II 2 54,000 O x 0.7970 X - 3 x 0.7120 Present Value 36,613 X 43,038 57,170 48,590 32.886 218,297 80,295 76,400 xxx x 4 0.6380 X = 5 58,000 O x 0.5870 S S Present value of cash inflows Present value of cash outflows Net present value 218,297 171,325 Project B Initial Investment S Year X X Cash Inflow 39,000 143,960 PV Factor 0.8930 Present Value 34,827 X 1 X 2 = 3 51,000 62,000 73,000 X 0.7970 0.7120 0.6360 OOC 40,647 44,144 46,428 4 5 22.000 x 0.5670 12,474 178,520 S S Present value of cash inflows Present value of cash outflows Net present value 178,520 143,980 S 34,580 X Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (PV of $1, FV of $1, PVA of $1 and FVA of $1). (Use appropriate factor(s) from the tables provided.) Project A $(171, 325) Project B $(143, 960) Initial investment Expected net cash flows in year: 1 2 3 4 5 41,000 54,000 80,295 76,400 58,000 39,000 51,000 62,000 73,000 22,000 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability index, if the company can only select one project, which should it choose? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the profitability index, if the company can only select one project, which should it choose? = Profitability Index Choose Choose Numerator: Profitability Denominator Index Present value of net cash 1 Profitability Initial investment = flows index Project $ 218,297 1 $ 171,329 X = 1.27 Project $ 178,520 X 1 143,960 = 1.24 B If the company can only select one project, which should it choose? Project A
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