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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 AnsHer @ 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 10year 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 handpushed 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 handpushed 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 highquality 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 AnsHer 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 Exerciset 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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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.
 Spring '10
 DILLAN

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