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Pani-rosa [81]
3 years ago
14

The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows f

rom each project are as follows: Year Wind Turbines Biofuel Equipment 1 $280,000 $300,000 2 280,000 300,000 3 280,000 300,000 4 280,000 300,000 The wind turbines require an investment of $887,600, while the biofuel equipment requires an investment of $911,100. No residual value is expected from either project. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192
Required:
1a. Compute the net present value for each project. Use a rate of 6% and the present value of an annuity of $1 in the table above. If required, round to the nearest dollar.
Wind Turbines Bio Fuel Equipment
Present value of annual net cash flows $ $
Less amount to be invested $ $
Net present value $ $
1b. Compute a present value index for each project. If required, round your answers to two decimal places.
Present Value Index
Wind Turbines
Bio Fuel Equipment
2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest percent.
Wind Turbines Bio Fuel Equipment
Present value factor for an annuity of $1
Internal rate of return % %
Business
1 answer:
alexandr1967 [171]3 years ago
6 0
Yea...... does that question come with a picture? Can u explain better?
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Request the necessary equipment/materials from your VA supervising practitioner or the unit supervisor in your area when do not believe that you have the proper materials to safely perform your job.

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2 years ago
Bledsoe Company received $17,000 cash from the issue of stock on January 1, Year 1. During Year 1, Bledsoe earned $8,500 of reve
Vsevolod [243]

Answer:

Part 2 Which of the following transactions does not involve an accrual?

  • Recording the pre-payment of two years' worth of insurance. THIS IS AN ASSET EXCHANGE TRANSACTION SINCE IT CREATES AN ASSET ACCOUNT, PREPAID INSURANCE, THAT DECREASES AS TIME PASSES

Part 3 The recognition of an expense may be accompanied by which of the following?

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Part 4 The adjusting entry to recognize work completed on unearned revenue involves which of the following?

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Part 5 Which of the following would cause net income on the accrual basis to be different from (either higher or lower than) "cash provided by operating activities" on the statement of cash flows?

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Explanation:

7 0
3 years ago
EB11.
GarryVolchara [31]

Answer:

Using High and Low Method  

                            Cost    Miles

                              $

High                     1,250    4,000

Low                      <u>(970) </u>    <u>(3,000)</u>

                            <u> 280 </u>     <u>1,000</u>

Variable cost per mile = $2,800/1,000

                                       =$0.28 per mile                

Explanation:

In this question, there is need to obtain the difference with the highest cost and lowest cost. We also need to calculate the difference between                                                                                                                                                                                                     the highest miles and lowest miles. Finally, we will divide the difference in cost by the difference in miles in order to determine the variable cost per mile.                                                                                                                                                                    

5 0
3 years ago
_____ offer goods to business customers. These business customers are too small to merit a sales call from the distributor s rep
Neporo4naja [7]
The answer is D. Cash and carry wholesalers

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5 0
3 years ago
Sheffield’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1
larisa [96]

Answer:

Company Save  $37000 by Buying

Explanation:

given data

make component part = 100 units

Direct Materials = $122000

Direct Labor = 34000

Variable Overhead = 55000

Fixed Overhead = 30000

purchase the component = $200000

fixed costs = $4000

to find out

make or buy decision

solution

first we find here Total Cost for Making component part

total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1

put here value

total cost for make =  $122000 + 34000  + 55000 + 30000

total cost for make = $241000

and

now we find here Total Cost for buying component part

total cost = Purchase Price + fixed costs   ............2

put here value we get

total cost for buying = $200000 +  $4000

total cost for buying  = $204000

so

we can say Company Save =  $241000 -  $204000   = $37000 by Buying

5 0
3 years ago
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