Week 7 Modules - ff Learning Exercise Windows Internet...

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Unformatted text preview: ff Learning Exercise - Windows Internet Explorer .7 A. Calculate PI'ESEI'IT Value Close Ohio Buckeye Company purchased a tract ofland on which a $50,000 payment is due each yearforthe next five years. What is the presentyalue ofthis stream ofcash payments when the discount rate is 10%? Use the attached spreadsheet to assistwith your calculations. .fl Present Value Tables 00.xst I _ I Walk rm: through a similar problem Amountofpresentyalue = $ Welcome, Stephni Robinson Wed Aug1? 2011 Exei c ise 'I 22T450 Type a number into the box,then click Check Answer. Check Ans-Her @ Done 100% v (5 Learning Exercise - Windows Internet Explorer g. httpsq'fdms.devrv.edui'dmsi'WebPagesfflashi'content,I'studenti'learningExercise.aspx?courseID=534245?&userID=2992022&dssID=1363roletvpe=STUDB¢ourseCode=AC5 V .7 3. Capital Project Calculation Evaluation E? Welcome, Steplini Robinson Wed Aug1? 2011 Exei c ise 'I Capital State University is evaluating the two investment proposals given below: investment Pro 1-. | Investment required 5 [200 .000) $ (100,000) ' 2 50 .000 130,000 Ignore the impact of income taxes in your calculation. Elased on project profitabilitv index for each investment proposal, which investment proposal should be undertaken and what is its project profitabilitvindex'? Close I .'-.- I Walk rm: through a similar problem Which proposalerEl? B Y ' Profitabilityindex'? Tvpe your answers into each or the boxes. When done, click Check Answer. Check Answer E Done 100% v if} Learning Exercise - Windows Internet Explorer Welcome, Stephni Robinson .7 C. Capital Project Preference Ranking Wed Aug1? 2011 E 2L| 3L| 4L| 5? Exercise 1 You are the CFO ofKeller Inc., a cistributor ofoutdoor swimming pool products. Kellerlnc is evaluating purchasing a $25,000 machine thatwoulcl reduce pool installation operating costs by $4,000 peryear. At the end ofthe machine's 10-year useful life, it will have no scrap value. Keller has a required rate ofreturn of12%. Ignore the impact ofincome taxes in your calculation. Determinethe netpresentyalue ofthe inyestment in the machine. Amount “mat presenwalue = $ (2400) Use the attached spreadsheet to assistwith your calculations. .fl Present Value Tables CElesx .| Type a number into the box,then click Check Answer. Close I Walk rm: through a similar problem Check Answer Q Done 100% v if} Learning Exercise - Windows Internet Explorer .7 C. Capital Project Preference Ranking n stl 32M Welcome, Stephni Robinson Wed Aug1? 2011 Exercise 2 mower purchase. Close Ohio GolfCourse Inc. is considering the purchase ofa specialized riding lawn mowerto use in mowingthe golfgreens on the course. Currently, the greens are mowed using a hand-pushed mower. The specialized riding mowerwill cost $1 4.1 25 and have a useful life of 10 years. It will have no scrap value. The specialized riding mower will cutthe greens fasterthan the hand-pushed mower, resulting in labor expense sayings of$2,500 peryear. Ignore the impact of income taxes in your calculation. Determine the internal rate ofreturn on the specialized riding .fl . Present Value Tables 03.xst Use the attached spreadsheet to assistwith your calculations. I I Walk rm: through a similar problem Internal rate ofreturn = 12 Type a number into the box,then click Check Answer. Check Answer IE Done 1oo°ro v {5 Learning Exercise - Windows Internet Explorer g, https:,l',l'dms.devry.edul'dmsl'WebPagesl'Hashl'content,I'studenti'learningExercise.aspx?courseID=534245?&user1D=2992022&dssID=1363roletype=STUDB¢ourseCode=AC5 V .7 C. Capital Project Preference Ranking 1L| 21E? 4L] 5:] The management othio Microbrew is considering an investment in a high-quality bottling machine with the following cash flows: Ohio Mi crobrew Estimated Cash Flow Year Investment Cash Infl ow $30,000 $4,000 10 .0 00 0,000 10,000 14,000 12,000 10,000 8,000 4,000 Ignore the impact ofincome taxes in your calculation. What is the payback period in years and months forthe potential investment? Close I f I Walk me through a similar problem U dyears 0 months 0 dyears 4 months 0 Syears 0 months 0 Syears 4 months Welcome, Steplini Robinson Wed Aug1? 2011 Exei c ise 3 Select your choice,then click Cheek Answer. Check Ans-Her Done 1oo°ro v (5 Learning Exercise - Windows Internet Explorer Welcome, Stephni Robinson .7 C. Capital Project Preference Ranking Wed Aug 1? 2o11 1L| 2L| 3L| a Exercise-t Delaware Processing Co. makes electronic equipmentfor satellites. The Companv is contemplating purchasing equipment for an additional satlellite equipment line.The additional equipment line would increase revenue bv $100,000. Incremental operating expenses would be $50,000. The equipmentwould cost $200,000 and have an eightvear life with no salvage value. gimme rate of return = 95 Ignore the impact of income taxes in your calculation. Express your answer as a percentage and round your final answer Calculate the simple rate of return 96 forthis potential investment. to two (lec'mal "laces' Type a number into the box,then click Check Answer. Close I Walk me through a similar problem Check Answer E )one 100% v ...
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Week 7 Modules - ff Learning Exercise Windows Internet...

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