Week 13 Chapter 26 Assignment Show Me How Calculator The following data are accu

Question

Week 13 Chapter 26 Assignment Show Me How Calculator The following data are accumulated by Paxton y in evaluating the purchase of $126,900 of Year 2 Year 3 Year 4 Net Income $29,000 18,000 8,000 (1,000) $49.000 38,000 28,000 19,000 Present Value of $1 at Compound Interest 1 596 1 0.943 0.909 0.893 0.870 0.833 20.890 0.826 0.797 0.756 0.694 3 0.8400.751 0.712 0.658 0.579 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.5720.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.4040.327 0.233 0.592 0.424 0.361 0.2840.194 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. Use the table of the present value of S1 presented a eck My Work All work saved.

Explanation / Answer

1 Present value of net cash flow 118595 =(49000*0.943)+(38000*0.89)+(28000*0.84)+(19000*0.792) Amount ot be invested 126900 Net present value -8305 b No, the management would favor this project c The Net present value indicates that retrun on the proposal is less than minimum desired rate of return of 6%

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.