Question: Question Content Area A project has estimated annual cash flows of $95,000 for 4 years and is estimated to cost $260,000. Assume a minimum acceptable

Question Content Area

A project has estimated annual cash flows of $95,000 for 4 years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%.

Following is a table for the present value of $1 at compound interest:

Year 6% 10% 12%
1 0.943 0.909 0.893
2 0.890 0.826 0.797
3 0.840 0.751 0.712
4 0.792 0.683 0.636
5 0.747 0.621 0.567

Following is a table for the present value of an annuity of $1 at compound interest:

Year 6% 10% 12%
1 0.943 0.909 0.893
2 1.833 1.736 1.690
3 2.673 2.487 2.402
4 3.465 3.170 3.037
5 4.212 3.791 3.605

a. Determine the net present value of the project. fill in the blank 1 of 1$

b. Determine the present value index. Round your answer to two decimal places. fill in the blank 1 of 1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid monthly on the last payday, while all...

Q:

Question Content Area A project has estimated annual cash flows of $90,000 for 3 years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10%. Following is a table for...

Q:

Please include solution. Thank you! Present Value A project has estimated annual net cash flows of $11,250 for four years and is estimated to a minimum acceptable rate of return of 12%. Use the...

Q:

A project has estimated annual cash flows of $95,000 for 4 years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%. Following is a table for the present value of $1...

Q:

1. A project has estimated annual cash flows of $90,000 for three years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10%. Using the following tables determine the...

Q:

Question 10 (5 points) A project has estimated annual cash flows of $90,000 for three years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10%. Using the following...

Q:

A project has estimated annual cash flows of $95,000 for 4 years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%. Using the following tables determine the (a) net...

Q:

A project has estimated annual cash flows of $90,000 for three years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10%. Using the following tables, determine the a)...

Q:

A project has estimated annual cash flows of $ 9 7 , 0 0 0 for 4 years and is estimated to cost $ 2 7 0 , 0 0 0 . Assume a minimum acceptable rate of return of 1 0 % . Using the following tables,...

Q:

A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return for 12%. Using the following tables determine the net...

Q:

A project has estimated annual cash flows of $95,000 for 4 years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%. Following is a table for the present value of s1...

Q:

In C++ Write a program that finds the number of negative and number of positive values for the function sin(x) between x=0 and x=2t with an increment value entered by the user. Example output: Enter...

Q:

Robert J. Reed has been a financial planner since 1978 and received his Certified Financial Planner designation in 1981. In 1999, he hired Lucy Banquer, a former legal secretary, to work as his...

Q:

FY23 FY24 FY23 FY24 Current Assets Current Liabilities Cash $610,459 $689,819 Accounts Payable $910,459 Accounts Receivable $660,459 $746,319 Notes Payable $1,320,918 Inventory $880,612 $995,092...

Q:

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data hes collected, but he was unable to figure out some of the amounts. Review the...

Q:

Assumes that the marginal propensity to consume in Maldives is 0.9. For the next year it is estimated that the economy would receive investments worth of RF 50 million, government would purchase...

Q:

.Why is your knowledge of Risk appetite and Risk threshold important in your Risk response strategy? 2.You had planned in your risk response to engage two additional programmers during the...

Q:

A tree is 70 meters high. Its shadow is x metres shorter when the sun's altitude is 45 than when it is 30. The value of x in metres is 1. 70V3 2. 70(V3 - 1) 70(V3 + 1) 4. 70 3.

Q:

1.- The Buyers Black Box in Chapter 5 and the Buying Center in Chapter 6 occupy the same spot in the stimulus/response model. With this in mind, write an explanation of the following statement:...

Q:

Realize that even in a small- or medium-sized business, age-friendly and inclusive human resource management practices can be adopted.

Q:

In the coming years, On Cheongs loyal and mature employees will grow older and some might choose to retire. Six employees are already over 70, and 15 are over the age of

Q:

It also seems likely that the next generation of employees may not stay with On Cheong for decades, or for life. How might this affect or change On Cheongs culture, which has emphasized warm,...