Homework Help is Here – Start Your Trial Now!
Business
Accounting
Zachary Modems, Incorporated (ZMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. ZMI has established a desired rate of return of 12 percent for these investment opportunities. (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Opportunity A B C D Investment term 4 years Expected cash inflow Cost of investment $ 3,800 $ 10,100 5 years $ 6,600 $ 19,800 3 years 5 years $ 3,300 $ 5,600 $ 8,000 $ 20,200 Required es a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each investment opportunity and record your answers in the following table.The results for Investment Opportunity A have been recorded in the table as an example. Note: Negative amounts should be indicated by minus sign. Round "Present value of cash flows and Net present value" to 2 decimal places. Opportunity A B C D Cash inflow $ 3,800 $ 6,600 $ 3,300 $ 5,600 Times present value factor Present value of cash flows $ Minus cost of investment 3.037349 11,541.93 (10,100.00) (19,800.00) (8,000.00) (20,200.00) Net present value $ 1,441.93 Required A Required B

Zachary Modems, Incorporated (ZMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. ZMI has established a desired rate of return of 12 percent for these investment opportunities. (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Opportunity A B C D Investment term 4 years Expected cash inflow Cost of investment $ 3,800 $ 10,100 5 years $ 6,600 $ 19,800 3 years 5 years $ 3,300 $ 5,600 $ 8,000 $ 20,200 Required es a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each investment opportunity and record your answers in the following table.The results for Investment Opportunity A have been recorded in the table as an example. Note: Negative amounts should be indicated by minus sign. Round "Present value of cash flows and Net present value" to 2 decimal places. Opportunity A B C D Cash inflow $ 3,800 $ 6,600 $ 3,300 $ 5,600 Times present value factor Present value of cash flows $ Minus cost of investment 3.037349 11,541.93 (10,100.00) (19,800.00) (8,000.00) (20,200.00) Net present value $ 1,441.93 Required A Required B

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 11P
See similar textbooks
icon
Related questions
Question
Zachary Modems, Incorporated (ZMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. ZMI has established a desired rate of return of 12 percent for these investment opportunities. (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Opportunity A B C D Investment term 4 years Expected cash inflow Cost of investment $ 3,800 $ 10,100 5 years $ 6,600 $ 19,800 3 years 5 years $ 3,300 $ 5,600 $ 8,000 $ 20,200 Required es a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each investment opportunity and record your answers in the following table.The results for Investment Opportunity A have been recorded in the table as an example. Note: Negative amounts should be indicated by minus sign. Round "Present value of cash flows and Net present value" to 2 decimal places. Opportunity A B C D Cash inflow $ 3,800 $ 6,600 $ 3,300 $ 5,600 Times present value factor Present value of cash flows $ Minus cost of investment 3.037349 11,541.93 (10,100.00) (19,800.00) (8,000.00) (20,200.00) Net present value $ 1,441.93 Required A Required B
Transcribed Image Text:Zachary Modems, Incorporated (ZMI) has several capital investment opportunities. The term, expected annual cash inflows, and the cost of each opportunity are outlined in the following table. ZMI has established a desired rate of return of 12 percent for these investment opportunities. (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Opportunity A B C D Investment term 4 years Expected cash inflow Cost of investment $ 3,800 $ 10,100 5 years $ 6,600 $ 19,800 3 years 5 years $ 3,300 $ 5,600 $ 8,000 $ 20,200 Required es a. Compute the net present value of each investment opportunity and record your answers in the following table. The results for Investment Opportunity A have been recorded in the table as an example. b. Determine the net present value and the internal rate of return for each investment opportunity. Record the results in the following table. The results for investment Opportunity A have been recorded in the following table as an example. Note that the manual computation yields the same net present value amounts as the financial function routines of Excel or a financial calculator. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each investment opportunity and record your answers in the following table.The results for Investment Opportunity A have been recorded in the table as an example. Note: Negative amounts should be indicated by minus sign. Round "Present value of cash flows and Net present value" to 2 decimal places. Opportunity A B C D Cash inflow $ 3,800 $ 6,600 $ 3,300 $ 5,600 Times present value factor Present value of cash flows $ Minus cost of investment 3.037349 11,541.93 (10,100.00) (19,800.00) (8,000.00) (20,200.00) Net present value $ 1,441.93 Required A Required B
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS