Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage...

 

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Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 Required: 1. Compute project Y's annual net cash flows. Ch. 24 Assignment 2 Part 2 of 4 25 points eBook Print Saved Required Information [The following Information applies to the questions displayed below.] Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 2. Determine Project Y's payback period. References Payback Period Numerator: Denominator: Project Y = Payback period = Ch. 24 Assignment 3 Part 3 of 4 25 points eBook Print References Saved Required Information [The following Information applies to the questions displayed below.] Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 3. Compute Project Y's accounting rate of return. Project Y Accounting Rate of Return Denominator: Numerator: 1 = Accounting rate of return Ch. 24 Assignment 4 Part 4 of 4 25 points eBook Saved Required Information [The following Information applies to the questions displayed below.] Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 Print References 4. Determine Project Y's net present value using 8% as the discount rate. (Do not round Intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Years 1-4 Net present value Present Value Present Value of Net Cash Flows x of Annuity at = 8% Net Cash Flows Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 Required: 1. Compute project Y's annual net cash flows. Ch. 24 Assignment 2 Part 2 of 4 25 points eBook Print Saved Required Information [The following Information applies to the questions displayed below.] Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 2. Determine Project Y's payback period. References Payback Period Numerator: Denominator: Project Y = Payback period = Ch. 24 Assignment 3 Part 3 of 4 25 points eBook Print References Saved Required Information [The following Information applies to the questions displayed below.] Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 3. Compute Project Y's accounting rate of return. Project Y Accounting Rate of Return Denominator: Numerator: 1 = Accounting rate of return Ch. 24 Assignment 4 Part 4 of 4 25 points eBook Saved Required Information [The following Information applies to the questions displayed below.] Project Y requires a $350,000 Investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery selling, general, and administrative expenses Income Project Y $ 350,000 157,500 87,500 49,000 $ 56,000 Print References 4. Determine Project Y's net present value using 8% as the discount rate. (Do not round Intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Years 1-4 Net present value Present Value Present Value of Net Cash Flows x of Annuity at = 8% Net Cash Flows

Answer rating: 100% (QA)

To compute Project Ys annual net cash flows we need to calculate the cash inflows and outflows for each year of the projects fouryear life Here are the steps to find the annual net cash flows 1 Calcul... View the full answer