1 A) Hsung Company accumulates the following data concerning aproposed capital investment: cash cost $161,952, net annual cashflows $37,200, and present value factor of cash inflows for 10years 4.66 (rounded). (If the net present value isnegative, use either a negative sign preceding the number eg -45 orparentheses eg (45).)
Determine the net present value, and indicate whether theinvestment should be made.
Net Present Value: $___________
The investment: should/should not be made.
1 B) Rihanna Company is considering purchasing new equipment for$395,200. It is expected that the equipment will produce net annualcash flows of $52,000 over its 10-year useful life. Annualdepreciation will be $39,520. Compute the cash payback period.(Round answer to 1 decimal place, e.g.10.5.)
cash payback period ___________ years
1 A) Hsung Company accumulates the following data concerning aproposed capital investment: cash cost $161,952, net annual cashflows $37,200, and present value factor of cash inflows for 10years 4.66 (rounded). (If the net present value isnegative, use either a negative sign preceding the number eg -45 orparentheses eg (45).)
Determine the net present value, and indicate whether theinvestment should be made.
Net Present Value: $___________
The investment: should/should not be made. |
1 B) Rihanna Company is considering purchasing new equipment for$395,200. It is expected that the equipment will produce net annualcash flows of $52,000 over its 10-year useful life. Annualdepreciation will be $39,520. Compute the cash payback period.(Round answer to 1 decimal place, e.g.10.5.)
cash payback period ___________ years