Chapter 12 Graded Homework Saved 5 Exercise 12-5 (Algo) Preference Ranking (L012-5] Information on four investment propo

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Chapter 12 Graded Homework Saved 5 Exercise 12 5 Algo Preference Ranking L012 5 Information On Four Investment Propo 1 (28.56 KiB) Viewed 36 times

Chapter 12 Graded Homework Saved 5 Exercise 12 5 Algo Preference Ranking L012 5 Information On Four Investment Propo 2 (35.58 KiB) Viewed 36 times

Chapter 12 Graded Homework Saved 5 Exercise 12-5 (Algo) Preference Ranking (L012-5] Information on four investment proposals is given below: 2.08 points Investment Proposal Skipped Investment required Present value of cash inflows Hot present value Life of the project $ (60,000) 38,000 $ 28,000 5 years $ (70,000) 97300 $ 27.300 7 years (40,000) 64. 200 $ 74,200 6 years D $ (990,000) 1,318,700 $ 328,700 6 years DO Print Required: 1. Compute the profitability index for each investment proposal (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. References Investment Profitability Proposal Index Rank Preference А B С D
6 Exercise 12-6 (Algo) Simple Rate of Return Method [LO12-6) 2.1 paints Skipped The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55.000 The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $7,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $26,000. The new moc would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating Income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of retu 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%) eBook Print References 1. Depreciation expense 2 Incremental net operating income 3. Initial investment 4 Simple rate of return