Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 438 Weeks Ago, 3 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 24 Apr 2017 My Price 15.00

Hot Air Highlights (HAH) is considering

Hot Air Highlights (HAH) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: (Use Table 2 &Table 4.)

       
Initial investment (for two hot air balloons) $ 361,000  
Useful life   8 years
Salvage value $ 49,000  
Annual net income generated $ 33,212  
HAH's cost of capital   14 %
Required:
Help HAH evaluate this project by calculating each of the following:
(a)

Accounting rate of return. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Accounting rate of return %
(b) Payback period. (Round your answer to 2 decimal places.)
Payback period years
(c)

Net present value (NPV). (Negative amount should be indicated by a minus sign. Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.)
Net present value $
(d)

Recalculate the NPV assuming HAH's cost of capital is 20 percent. (Negative amount should be indicated by a minus sign. Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.)

 

Net present value $

 

Lancer Corp. has the following information available about a potential capital investment:
       
Initial investment $ 1,309,200  
Annual net income $ 216,000  
Expected life   8 years
Salvage value   352,000  
Lancer's cost of capital   10 %



9. value:
10.00 points

Requirement 1:
Calculate the project's net present value. (Round your intermediate calculations to 4 decimal places and round your final answer to the nearest whole dollar amount. Omit the "$" sign in your response.)
Net present value $

check my workeBook Links (2)references

Worksheet Difficulty: Medium  



10. value:
10.00 points

Requirement 3:
Calculate the net present value using a 17 percent discount rate. (Negative amount should be indicated by a minus sign. Round your intermediate calculations to 4 decimal places and final answer to the nearest whole dollar amount. Omit the "$" sign in your response.)
Net present value

$

Midway Printing Co. is considering the purchase of new electronic printing equipment. It would allow Midway to increase its net income by $63,030 per year. Other information about this proposed project follows:

       
Initial investment $ 330,000  
Useful life   7 years
Salvage value $ 92,000  



11. value:
10.00 points

Requirement 1:
Calculate the accounting rate of return for Midway. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Accounting rate of return %
Worksheet Difficulty: Easy  



12. value:
10.00 points

Requirement 2:
Calculate the payback period for Midway. (Round your answer to 2 decimal places.)
Payback period

years

value:
10.00 points

Dayton Corp has $2.00 million to invest in new projects. The company's managers have presented a number of possible options that the board must prioritize. Information about the projects follows:
  Project A Project B Project C Project D
Initial investment $ 560,000 $ 240,000 $ 800,000 $ 955,000
Present value of
future cash flows		   775,000   420,000   1,210,000   1,570,000
Requirement 1:
Is Dayton able to invest in all of these projects simultaneously?
 
(Click to select)NoYes
Requirement 2:
(a)

Calculate the profitability index for each project. (Round your answers to 4 decimal places.)
  Profitability Index
Project A  
Project B  
Project C  
Project D  

 

(b)

In order of preference, rank the four projects in terms of profitability index for Dayton.

 

 
 

Project
Profitability Index

First preference

(Click to select)BDCA

Second preference

(Click to select)CBDA

Third preference

(Click to select)CADB

Fourth preference

(Click to select)ADCB

Answers

Alpha Geek
(8)
Status NEW Posted 24 Apr 2017 05:04 PM My Price 15.00

-----------

Attachments

file 1493054029-Answer.docx preview (752 words )
H-----------ot -----------Air----------- Hi-----------ghl-----------igh-----------ts -----------(HA-----------H) -----------is -----------con-----------sid-----------eri-----------ng -----------the----------- pu-----------rch-----------ase----------- of----------- tw-----------o n-----------ew -----------hot----------- ai-----------r b-----------all-----------oon-----------s s-----------o t-----------hat----------- it----------- ca-----------n e-----------xpa-----------nd -----------its----------- de-----------ser-----------t s-----------uns-----------et -----------tou-----------rs.----------- Va-----------rio-----------us -----------inf-----------orm-----------ati-----------on -----------abo-----------ut -----------the----------- pr-----------opo-----------sed----------- in-----------ves-----------tme-----------nt -----------fol-----------low-----------s: -----------(Us-----------e T-----------abl-----------e 2----------- &a-----------mp;-----------amp-----------;Ta-----------ble----------- 4.-----------) -----------Ini-----------tia-----------l i-----------nve-----------stm-----------ent----------- (f-----------or -----------two----------- ho-----------t a-----------ir -----------bal-----------loo-----------ns)----------- $ -----------361-----------,00-----------0 U-----------sef-----------ul -----------lif-----------e 8----------- ye-----------ars----------- S-----------alv-----------age----------- va-----------lue----------- $ -----------49,-----------000----------- An-----------nua-----------l n-----------et -----------inc-----------ome----------- ge-----------ner-----------ate-----------d $----------- 33-----------,21-----------2 H-----------AH'-----------s c-----------ost----------- of----------- ca-----------pit-----------al -----------14 -----------% ----------- R-----------equ-----------ire-----------d: ----------- He-----------lp -----------HAH----------- ev-----------alu-----------ate----------- th-----------is -----------pro-----------jec-----------t b-----------y
Not Rated(0)