Question : 146. Project A requires an original investment of $65,000. The project : 1251746

146. Project A requires an original investment of $65,000. The project will yield cash flows of $15,000 per year for seven years. Project B has a calculated net present value of $5,500 over a five year life. Project A could be sold at the end of five years for a price of $30,000. (a) Using the proper table below determine the net present value of Project A over a five-year life with salvage value assuming a minimum rate of return of 12%. (b) Which project provides the greatest net present value?Below is a table for the present value of $1 at compound interest. 

1.943.909.893

2.890.826.797

3.840.751.712

4.792.683.636

5.747.621.567

1.943.909.893

21.8331.7361.690

32.6732.4872.402

43.4653.1703.037

54.2123.7913.605

147. Project A requires an original investment of $50,000. The project will yield cash flows of $15,000 per year for seven years. Project B has a calculated net present value of $13,500 over a five year life. Project A could be sold at the end of four years for a price of $25,000. (a) Using the proper table below determine the net present value of Project A over a four-year life with salvage value assuming a minimum rate of return of 12%. (b) Which project provides the greatest net present value?Below is a table for the present value of $1 at compound interest. 

1.943.909.893

2.890.826.797

3.840.751.712

4.792.683.636

5.747.621.567

148. Jimmy Co. is considering a 12-year project that is estimated to cost $900,000 and has no residual value. Jimmy Co. seeks to earn an average rate of return of 17% on all capital projects. Determine the necessary average annual income (using straight-line depreciation) that must be achieved on this project for this project to be acceptable to Jimmy Co.

149. Proposals L and K each cost $500,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $120,000, while the net cash flows for Proposal K are as follows: 

150. Proposals M and N each cost $600,000, have 6-year lives, and have expected total cash flows of $750,000. Proposal M is expected to provide equal annual net cash flows of $125,000, while the net cash flows for Proposal N are as follows: 

151. A $550,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows: 

1$300,0003$208,000

2280,0004180,000

152. Sunrise Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows: 

153. The net present value has been computed for Proposals P and Q. Relevant data are as follows: 

154. Vanessa Company is evaluating a project requiring a capital expenditure of $480,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: 

155. BAM Co. is evaluating a project requiring a capital expenditure of $806,250. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: