Answer:
Year Dry Prepreg discounted cash flow
0 -$30,000 -$30,000
1 10,000 8,772
2 10,000 7,695
3 10,000 6,750
4 10,000 5,921
5 10,000 5,194
Year Solvent Prepreg. discounted cash flow
0 -$90,000 -$90,000
1 28,000 24,561
2 28,000 21,545
3 28,000 18,899
4 28,000 16,578
5 28,000 14,542
a. Calculate NPV, IRR, MIRR, payback, and discounted payback for each project
Dry Prepreg
NPV = $4,330
IRR = 19.86%
MIRR = 17.12%
payback = 3 years
discounted payback = 4.17 years
Solvent Prepreg
NPV = $6,130
IRR = 16.80%
MIRR = 15.51%
payback = 3.21 years
discounted payback = 4.58 years
b. Assuming the projects are independent, which one(s) would you recommend?
- both projects, since their NPV is positive
c. If the projects are mutually exclusive, which would you recommend?
Dry prepreg becuase its IRR, MIRR are higher, and its payback and discounted payback periods are shorter.
Answer:
$160000
Explanation:
Below is the calculation for the amount that should be recorded.
The actual value of building = $150000
Number of shares = 10000 shares
The stock is traded at the price = $16 per shares
The Kansas company should record the amount of building = total share x Sell price
The Kansas company should record the amount of building = 10000 x 16
The Kansas company should record the amount of building = $160000 (fair market value or price of shares)
Answer:
The new machine should not be purchased.
Explanation:
initial outlay = -$3,700 + $1,000 = -$2,700
cash flow years 1-4 = $700
discount rae = 8%
Using a financial calculator, the NPV = -$381.51
Since the NPV is negative, the new machine should not be purchased.
Answer:
safety
Explanation:
Michael is likely dreading that he will be laid off and lose his job next since several other employees at his organization have already been laid off. Due to this his need for security (stability and safety) is heightened.Thus, in this case, the type of needs that have become heightened are Michael's safety needs