1.What is the present value of $15 if I receive it in 4 years and the...

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Accounting

1.What is the present value of $15 if I receive it in 4 yearsand the discount rate is 3%? Round your answer to two decimalplaces.

2. How much cash flow will an investment of $1264 need togenerate annually to pay for itself in 6 years? Round your answerto the whole dollar.

3.What is the net present value of $50 each year for the next 7years if the discount rate is 1%? Round your answer to two decimalplaces.

4.You invest $100 today expecting to make a return of 8% over 5years. After the 5 years in up, you get a cash payout of $140. Didthe investment perform to you expectations?

Yes
No

5. You invest $100 today expecting to make a return of 8% over 5years. After the 5 years in up, you get a cash payout of $140. Whatis the difference between what you invested, and the net presentvalue of your nominal dollar return adjusted to its net presentvalue? Round your answer to two decimal places. Your answer shouldbe either positive or negative based on NPV-100.

6. the Brats'n'Jerky meat packing company is consideringpurchasing a new piece of equipment that will cut back on waste aswell as save time. Savings from reduced waste are expected to be$2712. It's expected that the new equipment will cut the number ofhours required at the plant by 1531 hours annually. The cost of onehour of labor $16. The cost of the piece of equipment beingconsidered is $80436. What is the expected payback on the piece ofequipment being considered? Round your answer to one decimalplace.

7. The Johnny Pickles Brewing Company has been successful as asmall craft microbrewery with a focus on distributing its productsto bars and restaurants. They are considering a bottling line thatwill allow them to start distributing to grocery and party stores.The equipment will cost $79505 to purchase. It's expected thatadditional sales will be $25680 per year while variable expensesare expected to increase $4930 annually. The equipment is expectedto last 5 years and will need a one time overhaul in year 3 thatwill cost $3315. The Johnny Pickles Brewing Company uses a discountrate of 10% when deciding to accept a project. What is theprojected undiscounted cash flow for the bottling line in year 3?Round your answer to the whole dollar.

Answer & Explanation Solved by verified expert
3.7 Ratings (410 Votes)
1 Present value of 1 after 4 years PVIF34 0888487 present value of 15 after 4 years 088848715 1333 2 if there is no discount rate given in question then cash flow    See Answer
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1.What is the present value of $15 if I receive it in 4 yearsand the discount rate is 3%? Round your answer to two decimalplaces.2. How much cash flow will an investment of $1264 need togenerate annually to pay for itself in 6 years? Round your answerto the whole dollar.3.What is the net present value of $50 each year for the next 7years if the discount rate is 1%? Round your answer to two decimalplaces.4.You invest $100 today expecting to make a return of 8% over 5years. After the 5 years in up, you get a cash payout of $140. Didthe investment perform to you expectations?YesNo5. You invest $100 today expecting to make a return of 8% over 5years. After the 5 years in up, you get a cash payout of $140. Whatis the difference between what you invested, and the net presentvalue of your nominal dollar return adjusted to its net presentvalue? Round your answer to two decimal places. Your answer shouldbe either positive or negative based on NPV-100.6. the Brats'n'Jerky meat packing company is consideringpurchasing a new piece of equipment that will cut back on waste aswell as save time. Savings from reduced waste are expected to be$2712. It's expected that the new equipment will cut the number ofhours required at the plant by 1531 hours annually. The cost of onehour of labor $16. The cost of the piece of equipment beingconsidered is $80436. What is the expected payback on the piece ofequipment being considered? Round your answer to one decimalplace.7. The Johnny Pickles Brewing Company has been successful as asmall craft microbrewery with a focus on distributing its productsto bars and restaurants. They are considering a bottling line thatwill allow them to start distributing to grocery and party stores.The equipment will cost $79505 to purchase. It's expected thatadditional sales will be $25680 per year while variable expensesare expected to increase $4930 annually. The equipment is expectedto last 5 years and will need a one time overhaul in year 3 thatwill cost $3315. The Johnny Pickles Brewing Company uses a discountrate of 10% when deciding to accept a project. What is theprojected undiscounted cash flow for the bottling line in year 3?Round your answer to the whole dollar.

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