Present Value of $1Year 1/2%1234567891011121314154%1% 2%0.995 0.990 0.980 0.9620.985 0.971 0.9425% 6% 8% 10% 12% 14% 15% 16% 18% 20% 22% 24% 25% 30% 35% 40%0.952 0.943 0.926 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.820 0.806 0.800 0.769 0.741 0.7140.990 0.980 0.961 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.672 0.650 0.640 0.592 0.549 0.5100.889 0.864 0.840 0.794 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.551 0.524 0.512 0.455 0.406 0.3640.980 0.961 0.924 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.451 0.423 0.410 0.350 0.301 0.2600.975 0.951 0.906 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.370 0.341 0.328 0.269 0.223 0.1860.971 0.942 0.888 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.303 0.275 0.262 0.207 0.165 0.1330.966 0.933 0.871 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.249 0.222 0.210 0.159 0.122 0.0950.961 0.923 0.853 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.204 0.179 0.168 0.123 0.091 0.0680.914 0.837 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.167 0.144 0.134 0.094 0.067 0.0480.951 0.905 0.820 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.137 0.116 0.107 0.073 0.050 0.0350.947 0.896 0.804 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.112 0.094 0.086 0.056 0.037 0.0250.942 0.887 0.788 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.092 0.076 0.069 0.043 0.027 0.0180.937 0.879 0.773 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.075 0.061 0.055 0.033 0.020 0.0130.933 0.870 0.758 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.062 0.049 0.044 0.025 0.015 0.0090.928 0.861 0.743 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.051 0.040 0.035 0.020 0.011 0.0060.956 Ironwood Charities is considering an investment in one of their buildings that is expected to return the following cash flows: UseExhibit A.8.Year14Nm & in2345Net Cash Flow$ 15,00027,00043,00058,00048,000This schedule includes all cash inflows from the project, which will also require an immediate $152,000 cash outlay. The organization istax-exempt; therefore, taxes need not be considered.Required:a. What is the net present value of the project if the appropriate discount rate is 8 percent?b. What is the net present value of the project if the appropriate discount rate is 4 percent?Complete this question by entering your answers in the tabs below.Required ARequired BWhat is the net present value of the project if the appropriate discount rate is 8 percent?Note: Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.Net present value< Required ARequired B >

Net present value :Calculation used to evaluate the investment and financing decisions that involve…

Ironwood Charities is considering an investment in one of their buildings that is expected to return the following cash flows: Use Exhibit A.8. Year 1 4Nm & in 2 3 4 5 Net Cash Flow $ 15,000 27,000 43,000 58,000 48,000 This schedule includes all cash inflows from the project, which will also require an immediate $152,000 cash outlay. The organization is tax-exempt; therefore, taxes need not be considered. Required: a. What is the net present value of the project if the appropriate discount rate is 8 percent? b. What is the net present value of the project if the appropriate discount rate is 4 percent? Complete this question by entering your answers in the tabs below. Required A Required B What is the net present value of the project if the appropriate discount rate is 8 percent? Note: Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign. Net present value < Required A Required B >

Ironwood Charities is considering an investment in one of their buildings that is expected to return the following cash flows: Use Exhibit A.8. Year 1 4Nm & in 2 3 4 5 Net Cash Flow $ 15,000 27,000 43,000 58,000 48,000 This schedule includes all cash inflows from the project, which will also require an immediate $152,000 cash outlay. The organization is tax-exempt; therefore, taxes need not be considered. Required: a. What is the net present value of the project if the appropriate discount rate is 8 percent? b. What is the net present value of the project if the appropriate discount rate is 4 percent? Complete this question by entering your answers in the tabs below. Required A Required B What is the net present value of the project if the appropriate discount rate is 8 percent? Note: Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign. Net present value < Required A Required B >

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 8P: Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley...

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