& [ Question 1 - Week 10 - Chapter 12 Homework - Connect = [l X & G M ) https://ezto.mheducation.com/ext/map/indexhtmi?_con=con&external_browser=08&launchUrl=https%253A%252F%252Fconnect.... A y o = % o O A Amazon.com - Onli.. E Bocking.com U McAfee Security D Bockmarks & Home |3 Suggested Sites WildTangent Games ] Imported From IE ] Toshiba > [77] Other favorites 6 Week 10 - Chapter 12 Homework o Saved Help Save & Exit Submit Q, Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. w & Bob Jensen Incorporated purchased a $650,000 machine to manufacture specialty taps for electrical equipment. Jensen expects to a " sell all it can manufacture in the next 10 years. The machine is expected to have a 10-year useful life with no salvage value. Jensen uses straight-line depreciation. The net cash inflow is expected to be $150,000 each year for 10 years. Jensen uses a 12% discount & rate in evaluating capital investments. Assume, for simplicity, that MACRS depreciation rules do not apply. o 3 Required: paoints Using Excel (including built-in functions for NPV, IRR, and MIRR), compute the following for the above-referenced investment: 1. The payback period, under the assumption that cash inflows occur evenly throughout the year. (Do not round intermediate calculations. Round your final answer to 1 decimal place.) + 2. The accounting (book) rate of return based on (a) initial investment, and (b) average investment. (Round your final answers to 1 decimal place (i.e. 0123 = 12.3%).) 3. The net present value (NPV) of the propesed investment under the assumption that cash inflows occur at year-end. {Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) 4. The present value payback pericd, in years, of the proposed investment under the assumption that cash inflows occur evenly throughout the year. (Note: because of this assumption, the present value calculations will be approximate, not exact) To calculate present value amounts, use the appropriate factors from Appendix C, Table 1. (Do not round intermediate calculations. Round your final answer to 1 decimal place.) 5. The internal rate of return (IRR). (Do not round intermediate calculations. Round your final answer to 1 decimal place (i.e. 0123 = 12.3%).) 6. The medified internal rate of return (MIRR). (Do not round intermedliate calculations. Round your final answer to 1 decimal place i (i.e. 0123 =12.3%).) (In conjunction with this requirement, you might want to consult either of the following two references: MIEE Eunction and/or |IRR in Excel) v + % Prey 1of4 ZHE Next > & M Question 1 - Week 10 - Chapter 12 Homework - Connect X n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https%253A%252F%252Fconnect... . . a Amazon.com - Onli... B. Booking.com McAfee Security Bookmarks Home > Suggested Sites W WildTangent Games Imported From IE Toshiba > Other favorites Week 10 - Chapter 12 Homework Saved Help Save & Exit Submit b Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question i.e. 0.123 = 12.3%).) (In conjunction with this requirement, you might want to consult either of the following two references: MIRR Function and/or IRR in Excel.) o G x Answer is complete but not entirely correct. 3 points G 1. Unadjusted payback period 4.3 years + G 2a ARR based on initial investment 0.1 x % 2b ARR based on average investment 0.3 X% G 3. NPV $ 271,685 x Present value payback period 5.0 x years 5. Internal rate of return (IRR) 5.0 x % 6. Modified internal rate of return (MIRR) 6.0 x % M Mc + Graw Hill 1 News for you H 4:22 PM Q Search India's growing r.. 9/2/2024 PRE