solved : 1.Crane?Inc had the following activity last year: Sales $295000; Cost of goods sold $175000; Depreciation expense $

  

1.CraneInc had the following activity last year: Sales $295000; Cost of goods sold $175000; Depreciation expense $20000; other selling and administrative expenses $90000; income tax expense $2500. What was the estimated net cash flow for the year?$27500
$7500
$10000 $30000 2.Sheridan, Inc. is considering purchasing equipment costing $60000with a6-year useful life. The equipment will provide annual cost savings of $15000and will be depreciated straight-line over its useful life with no salvage value.Sheridanrequires a10% rate of return.
Present Value of an Annuity of 1Period8%9%10%11%12%15%64.6234.4864.3554.2314.1113.784
What is the approximate net present value of this investment?
$7290 $30000 $3464 $5325 3.
3.Metlock, Inc. is considering purchasing equipment costing $46000with a 6-year useful life. The equipment will provide annual cost savings of $11189and will be depreciated straight-line over its useful life with no salvage value.Metlockrequires a 10% rate of return.
Present Value of an Annuity of 1Period8%9%10%11%12%15%64.6234.4864.3554.2314.1113.784
What is the approximate internal rate of return for this investment?
12% 10% 11% 9% 4. Present Value of an Annuity of 1Periods8%9%10%10.9260.9170.90921.7831.7591.73632.5772.5312.487
A company has a minimum required rate of return of9%. It is considering investing in a project that costs $177000and is expected to generate cash inflows of $72000at the end of each year for three years. The net present value of this project is$36000. $5232. $18223. $182232. 5.CheyenneCompany is considering two capital investment proposals. Estimates regarding each project are provided below:
Project SoupProject NutsInitial investment$460000$432000Annual net income3000046000Net annual cash inflow110000146000Estimated useful life5years6yearsSalvage value00
The company requires a10% rate of return on all new investments.
Present Value of an Annuity of 1Periods9%10%11%12%53.893.7913.6963.60564.4864.3554.2314.111
The cash payback period for Project Nuts is2.96years. 15.33years. 5.75years. 5.27years. 6.If a project costing $81000has a profitability index of1and the discount rate was12%, then the present value of the net cash flows was $81000. less than $81000. greater than $81000. undeterminable. 7.A project has an annual rate of return of15%. The project cost $60000, has a5-year useful life, and has no salvage value. Straight-line depreciation is used. The annual net income, exclusive of depreciation, is $23850. $9000. $21000. $16500. 8.A project that cost $66000has a useful life of5years and a salvage value of $3000. The internal rate of return is12% and the annual rate of return is18%. The amount of the annual net income is $4140. $5670. $6210. $3780. GF2AA82E7-1677-4FA0-AEDB-02E399DEA569.png

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