1) A company invests in a new project that requires an initialcapital outlay of...

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Accounting

1) A company invests in a new project that requires an initialcapital outlay of $852790. The project will generate annual netcash flows of $145612 over a period of 8 years. The after-tax costof capital is 9%. In addition, a working capital outlay of $94620will be required. This working capital outlay will be recovered atthe end of the project’s life.
What is the net present value of the project?
Select one:
a. $-141474
b. $-93987
c. $312106
d. $-46854
2) Data relating to Randall Ltd.’s single product are asfollows:
Selling price
$5.16
Direct materials
0.82
Direct labour
0.85
Overhead (60% fixed)
0.99
Gross Profit
$2.5

The company currently produces 56699 units.
Randall Ltd. is considering purchasing a new machine that isexpected to decrease variable costs by 14%. The expected usefullife of the new machine is 11 years.
Assuming a weighted average cost of capital of 8%, what is thenet present value of the increase in contribution margin relatingto this investment?
Select one:
a. $117076
b. $191826
c. $7034
d. There is a decrease in the contribution margin.

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In: Accounting1) A company invests in a new project that requires an initialcapital outlay of $852790....1) A company invests in a new project that requires an initialcapital outlay of $852790. The project will generate annual netcash flows of $145612 over a period of 8 years. The after-tax costof capital is 9%. In addition, a working capital outlay of $94620will be required. This working capital outlay will be recovered atthe end of the project’s life.What is the net present value of the project?Select one:a. $-141474b. $-93987c. $312106d. $-468542) Data relating to Randall Ltd.’s single product are asfollows:Selling price$5.16Direct materials0.82Direct labour0.85Overhead (60% fixed)0.99Gross Profit$2.5The company currently produces 56699 units.Randall Ltd. is considering purchasing a new machine that isexpected to decrease variable costs by 14%. The expected usefullife of the new machine is 11 years.Assuming a weighted average cost of capital of 8%, what is thenet present value of the increase in contribution margin relatingto this investment?Select one:a. $117076b. $191826c. $7034d. There is a decrease in the contribution margin.

	Selling price	$5.16
	Direct materials	0.82
	Direct labour	0.85
	Overhead (60% fixed)	0.99
	Gross Profit	$2.5