50.1K

Verified Solution

Link Copied!

Score: Wo 5 pls E12-29A (similar to) Question Help the NPV method to determine whether McKnight Products should invest in the following projects Project Acons S270,000 and offers seven annual net cash inflows of $56,000 McKnight Products requires an annual return of 12% on projects like Prome costs $375,000 and offers nine annual net cash rows of $73,000 McKnight Products demands an annual retum of 10% on investments of this nature (Click the icon to view the present value annuity table) Click the icon to view the present value table) Click the icon to view the future value annuity table) Click the icon to view the future value table) Requirement What is the NPV of each project? What is the maximum acceptable price to pay for each project? Calculate the NPV of each project. (Round your answers to the nearest whole dollar Use parentheses or a minus sign for negative net present values The NPV of Projects Enter any number in the edit fields and then click Check Answer 3 remaining Clear All Check Answer Type here to search Rolorence Present Value of Annuity of S1 Perioda 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0,980 0.971 0.9620.952 0.943 0.926 0.909 0.893 0.877 0.862 0.8470.833 Period 2 1970 1.942 1913 1.896 1859 1.833 1783 1736 1 690 1 647 1.6051566 1.528 Period 3 2941 2884 2829 2775 2.723 2.673 2577 2487 2402 2322 2246 2. 1742 106 Period 4 3.902 3.808 3.717 3.630 3.546 3465 3,312 3.170 3.0372914 2798 2690 2589 Period 5 4853 4.713 4.580 4.452 43294212 3.993 3.791 3.805 3.433 3274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4 623 4.355 4.111 3.899 3.685 3.498 3326 Period 7 6.728 6.472 6.2306.0025.786 55825.206 4.868 4.564 4.288 4039 3.812 3.605 Period 87.652 7.325 70206.733 6.463 6.210 5.747 5.335 4.968 4.6394344 4078 3.837 Period 98586 8.162 7.7867435 7.1086.902 6247 5.759 5.328 4.946 4 607 4303 4.031 Period 10 9.471 8983 8.530 8.111 77227360 6.710 6.145 5.6505.216 4.833 4.494 4.192 Period 11 10.368 9.787 9253 8.760 8.3067887 7.139 6.495 5.938 5.453 5029 4.656 4327 Period 12 11 255 10.575 9.954 9,385 8.863 8.3847536 6.814 6.1945.660 5.197 4.793 4.439 Period 13 12.134 11.348 10.635 9.9869.394 8.853 7904 7.103 6.424 5.8425342 4.910 4533 Period 14 13.004. 12.108 11 298 10,563 9.899 9.2958 244 7.367 6.628 6.002 5468 5.000 4611 Period 15 13.885 12 849 11938 11.118 10 38097128.5597606 6.8116.142 5.575 5.092 4 675 Period 20 18.046 16.351 14 877 13.590 12.462 11.4709818 8.514 7.469 6.623 5.929 5.353 4870 Period 25 22.023 19.523 17413 15.622 14.094 12783 10.675 9.07778436.873 6.097 5.467 4948 Period 30 25 808 22.396 19.600 17 292 15372 13.765 11 2589.4278.05570036.177 5517 4.979 Period 40 32835 27 355 23.115 19.793 17 159 15.046 11925 9.779 8 244 7 105 6.233 5.548 4997 Print Done mber in the edit fields and then click Check Answer Clear All Check Answer Type here to search ote V method to determine whether Mcknight Products should invest in the following projects costs $270,000 and offers seven annual net cash flow of $56,000 McKnight Products requires an annual return of 12% Roforonon - X 14% TI ve net Present Value of S1 Periodo 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0 980 0971 0.362 0.952 0.943 0.928 0.909 0893 0.877 0.862 0.847 0833 Period 2 0.980 0961 0.943 0.925 0907 0.890 0.857 0.828 0.797 0769 0.743 0718 0.694 Period 3 0971 0.942 0915 0.889 0.864 0.8400794 0.751 0712 0675 0.641 0.609 0.579 Period 4 0961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0516 0482 Period 5 0.951 0.906 0863 0.822 0784 07470.681 0621 0.5670519 0.476 0.437 0.402 Period 6 0.942 0888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.458 0.410 03700335 Period 7 0.933 0.871 0.813 07600711 0.665 0,583 0.513 0.452 0.400 0.3540314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.46704040.351 0.305 0266 0233 Period 9 0914 0.837 0.768 0.703 0645 0.592 0500 0.424 0.361 0.308 0.263 0225 0.194 Period 10 0905 0 820 0.744 0676 0.614 0.558 0.463 0.388 03220 2700 227 0 191 0.162 Period 11 0896 0.804 0.722 0650 0.585 0.527 0.429 0.350 0.287 0237 0.1960.1620135 Period 12 0887 0.788 0.701 0.625 05570497 0.397 0.319 025702080.168 0.137 0.112 Period 13 0 879 0.773 0.681 0.601 0530 0.469 0368 0.290 0 229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0961 0.743 0642 0.556 0.481 0.417 0.315 0.239 0.183 0.140 0.106 0084 0.065 Period 20 0 820 0.673 0.554 0.456 0.377 0312 0.215 0.149 0.10400730051 0.037 0.026 Period 25 0.780 06100478 0.375 0.2950 233 0.14 0.092 0.0590.038 0.0240016 0.010 Period 30 0.7420552 0.412 03080231 0.1740099 0.0570033 0.0200012 0.007 0.004 Period 40 0.672 0.453 0.307 0208 0.142 0.097 0046, 0.022 0.011 0.005 0.003 0.001 0.001 Print Done Done mber in the edit fields and then click Check Answer Clear All Chock Answer Type here to search : 0 of 5 pts Question Help E12-29A (similar to) De NPV method to determine whether Mcknight Products should invest in the following projects Acost $270.000 and offers seven annual pel cash inflows of $56.000 Mcknight Products requires an annual retum of 12% on Rofotenco Future Value of Annuity of S1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1000 1000 1.000 1.000 1.000 1000 1000 1,000 1.000 1000 1000 1.000 Period 2 2010 2020 2.000 2.000 2050 2000 2080 2.100 2 120 2.140 2160 2.180 2200 Period 3 3.030 30603.091 3.122 3.153 3.184 3246 3310 3.374 3.440 3.506 3.572 3.640 Period 4 4060 4.122 41844246 4310 4375 4508 4.641 4.779 4.921 5.066 5215 5368 Periods 5101 5204 5309 5.416 5.526 5637 5.867 6 105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 8.30864886.633 6.802 B975 7336 7716 8. 115 8.538 8977 9.442 9.930 Period 7 7.2147434 7682 7898 8.1428391 8.923 9.487 10.089 10.730 11414 12 142 12,916 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.438 12 300 13233 14.240 15.327 16.499 Period 9 9.389 9.755 10.159 10.583 11.027 11491 12488 13579 14.776 16 085 17519 19086 20.799 Period 10 10.462 10 950 1146412006 12578 13.181 14.487 15.937 17.549 19.337 21321 23.521 25.950 Period 11 11567 12 16912808 13.486 14.20714 972 16.845 18.531 20.656 23.045 25733 28755 32. 150 Period 12 12883 13.412 14.192 15.026 15.917 16.870 18,977 21 384 24 133 27 271 30850 34 931 39.581 Period 13 13,809 14 680 15618 16.627 17.713 18.882 21.495 24.523 28.029 32089 38.786 42219 48.497 Period 14 14 947 15974 17.098 18.292 19 599 21.015 24 215 27 975 32393 37581 43.672 50 818 50.198 Period 15 16.09717283 18.590 20 024 21579 23.276 27. 152 31.772 37 280 43842 51 660 60.965 72035 Period 20 22019 24 297 28 870 29.778 33,066 38.78845.762 57 275 72052 91.025 115 380 146.628 188 688 Period 25 28 24312.030 35 459 41 646 477275488573108 98.347 133 334 181 871 249 214 342 603 471.981 Period 30 34.785 40 588 47 575 58.085 66.439 79 058 113 283 184 494 241,333 358 787 530 312 790 948 1.181.882 Period 40 48 886 00:402 75 401 95028 120.800 154 762 259,057 442.593 767.091 1342.025 2.360.757 4 163 2137.343.858 Print Done y number in the edit fields and then click Check Answer aning Clear All Check Answer Type here to search

Answer & Explanation Solved by verified expert

See Answer