Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. . questions 13 - 18 are all based on the following

. Questions 13 - 18 are all based on the following information. Steward Princeville, the...

90.2K

Verified Solution

Question

Finance

imageimage

. Questions 13 - 18 are all based on the following information. Steward Princeville, the CEO of St. Charles Elevators, Inc. believes that the firm could create additional value by adding escalators to its product mix. Machinery used in producing the escalators would cost $7,900,000. According to Princeville's projections, the subsequent net cash flows the company would generate for the investors if it entered the escalator business would be $950,000 per year for 16 years. These are the only cash flows expected. The firm's annual weighted average cost of capital for a project of this type is 8.2%. QUESTION: What is the escalator project's PAYBACK PERIOD in years? O A. 1.924 OB. 59.375 O C. 8.316 OD. 10.910 O E. 14.787 In answering question 13, Which of the five equations shown would you use in computing the project's internal rate of return (IRR)? please refer to the following five equations. EQUATION 1: - $7,900,000 + $950,000 ("Cemi ) - ,900,000 - $7,900,000 + $950,000 1+IRR IRR J=$7,900,000 EQUATION 2: EQUATION 3: 1+IRR $7,900 0,00 - ] = $950,000 IRR - $950,000 + 87,900,000 (P) - so 90.0 ('- ") - soooo - 5790,00 + 950.000 (5 puta") aso - 57.900,00 + 850.0 (957 ") - sos0,00 EQUATION 4: EQUATION 5

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Question 17 The school paper published the results of a survey among grade eight students...

Statistics
Q

Let f: X?Y and g: Y?Z be both onto. Prove that g?f is an onto function Let...

Advance Math
Q

Does not depend on the frequency of the incident light Does not depend on nature...

Physics
Q

44 Two point charges q and q of 10 C and 10 C respectively are...

Physics
Q

Solve the system by substitution y 3x 6 y 4x 12

Algebra
Q

On January 15, Tamarisk, Inc. sells merchandise on account to Martinez Associates for $5600 with...

Accounting
Q

The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use...

Accounting
Q

* Data Table Root Medical Supply, Inc., reported the following financial statements for 2018: E...

Accounting
Q

4 - Write a Monologue/Soliloquy in 250 words

Accounting
Q

Metlock Company purchased an electric wax melter on April 30, 2017, by trading in its...

Accounting
Q

Kersten Brown, the CEO of Pleasanton Studios, is having a tough week - all three...

Accounting
Q

Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z....

Accounting