Question: URGENT , who will ever answer this question will get 4 likes. Citco Company is considering investing up to $714,000 in a sustainability-enhancing project. Its






Citco Company is considering investing up to $714,000 in a sustainability-enhancing project. Its managers have narrowed their choices: to three potential projects. - Project A would redesign the production process to rocycle raw materials waste back into the production cycle, saving on direct materiais costs and reducing the amount of waste sent to the landfill. - Project B would remodel an office building, utilizing solar panels and natural materials to create a more energy-efficient and healthy work environment. - Project C would bulid a new training center in an underserved community, providing jobs and economic security for the local community. Required: 1. Assuming the cost of capital is 8%, complete the table below by computing the payback period, NPV, Profitability Index, and Internal Rate of Return. (Future Value of $1. Present Value of \$1. Future Value Annulty of \$1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your "NPV" answers to the nearest whole dollar amounts. Round your "PI" and "IRR" answers to 2 decimal places.) Round your "NPV" answers to the nearest whole dollar amounts. Round your "PI" and "IF 2. Based strictly on the economic analysis, in which project should they invest? Project A Project B Project C Heame Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Assume straight line depreciation method is used. (Future Value of $1. Present Value of \$1. Future Value Annulty of \$1. Present Value Annuity of \$1.) (Use appropriate factor(s) from the tables provided.) Project 1: Retooling Manufacturing Facility This project would require an initial investment of $5,050,000. It would generate $1,045,000 in additional net cash flow each year. The new machinery has a useful life of eight years and a salvage value of $2,000,000. Project 2: Purchase Patent for New Product The patent would cost $4,100,000, which would be fully amortized over five years. Production of this product would generate $922,500 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $191,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $7,000. Purchasing the fleet would allow Hearne to expand its customer territory resulting in $247,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine each project's accounting rate of return. (Round your answers to 2 decimal places.) rroject s: purcnase a rvew reet or vevery rucs Hearne could purchase 25 new delivery trucks at a cost of $191,000 each. The fleet would have a u truck would have a salvage value of $7,000. Purchasing the fleet would allow Hearne to expand its $247,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine each project's accounting rate of return. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Determine each project's payback period. (Round your answers to 2 decimal places.) Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $191,000 each. The fleet would have a truck would have a salvage value of $7,000. Purchasing the fleet would allow Hearne to expand it: $247,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Using a discount rate of 10 percent, calculate the net present value of each project. (Round your interi 4 decimal places and final answers to 2 decimal places.) Required: 1. Determine each project's accounting rate of return. 2. Determine each project's payback period. 3. Using a discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Determine the profitability index of each project and prioritize the projects for Hearne. (Round your to 2 decimal places. Round your final answers to 4 decimal places.)
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