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quiz 20 help

# quiz 20 help - 1 Question The Petty Company has analyzed an...

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1 Answer: Given Information Note: Present value tables are needed. Present value of annuity of equal a inflows at 10% (5000 \$4,670 Residual Value in year 8 at 10% (? \$10,000 Investment \$6,960 Net Present Value \$3,919 3 I don't get the answer that it says is co \$18,900 14% = Average an \$37,800 Average am \$54,600 14% = Average an \$92,400 (Cost of equ 14% = Average an (660000 - 1 14% = Average an 270000 14% x 270000 = Average an 37800 = Average an 4 Question: Simms Manufacturing is considering two alternative investment proposals with the following data Proposal X Proposal Y Investment \$620,000 \$400,000 Useful life 8 years 8 years Estimated annual net cash inflows for 8 years \$130,000 \$80,000 Residual value \$60,000 \$0 Depreciation method Straight-line Straight-line Required rate of return 14% 10% Note: Present value tables are needed. What is the net present value of Proposal X? Answer: \$3,070 positive Present value of annuity of equal a \$4,130 positive inflows at 14% (1300 Question: The Petty Company has analyzed an investment opportunity costing \$270,000, and determined that the net the investment would generate cash inflows of \$50,000 a year for eight years, and used a discount rate of 10%. What

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