Assume the net cash flows for years 2014 through 2018 are as detailed below. Calculate the...
Assume the net cash flows for years 2014 through 2018 are as detailed below. Calculate the net present value of the project in 2014 using only the net cash flows for years 2014 through 2018 if the MARR is 6% per year, compounded annually. (note: round your answer to two decimal places; do not include spaces, commas, or currency signs in your answer).
|
Year |
2014 |
2015 |
2016 |
2017 |
2018 |
|
Net Cash Flow ($) |
-260,000 |
12,500 |
86,750 |
168,000 |
214,600 |
Homework Answers
i = 6%
the present value of the project:-
= -260000+12500*(P/F,6%,1)+86750*(P/F,6%,2)+168000*(P/F,6%,3)+214600*(P/F,6%,4)
= -260000+12500*0.943396+86750*0.889996+168000*0.839619+214600*0.792094
= 140038.97
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Assume the net cash flows for years 2014 through 2018 are as
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Question 2
Cullumber Ltd. purchased a new machine on April 4, 2014, at a
cost of $179,200. The company estimated that the machine would have
a residual value of $16,000. The machine is expected to be used for
10,200 working hours during its four-year life. Actual machine
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2016; 2,200 hours in 2017; and 2,000 hours in 2018. Cullumber has a
December 31 year end.
Calculate depreciation for...
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Cullumber Ltd. purchased a new machine on April 4, 2014, at a
cost of $179,200. The company estimated that the machine would have
a residual value of $16,000. The machine is expected to be used for
10,200 working hours during its four-year life. Actual machine
usage was 1,400 hours in 2014; 2,200 hours in 2015; 2,400 hours in
2016; 2,200 hours in 2017; and 2,000 hours in 2018. Cullumber has a
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Calculate depreciation for the machine...
Martinez Corp. began operations in 2014. During the years
2014-2016, it reported net income and declared dividends as
follows.
Net income
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2014
$27,000
$ –0–
2015
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During 2017, Martinez Corp.:
●
discovered that it had
failed, in 2015, to record $44,000 in depreciation on equipment in
one of its warehouses.
●
changed, on January 1 ,2017,
from the average cost to the FIFO method of accounting for its
inventory. If Martinez Corp. had...
Question 2
Cullumber Ltd. purchased a new machine on April 4, 2014, at a
cost of $179,200. The company estimated that the machine would have
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10,200 working hours during its four-year life. Actual machine
usage was 1,400 hours in 2014; 2,200 hours in 2015; 2,400 hours in
2016; 2,200 hours in 2017; and 2,000 hours in 2018. Cullumber has a
December 31 year end.
Calculate depreciation for...
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