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Business, 21.05.2021 03:30 SchoolSucks234

Ursus, Inc. is considering a project that would have a seven-year life and would require a 51260,000 investment equipment the end of seven years, the project would terminate and the equipment would have no salvage value. The project would provide operating income each year as follows (gnore income taxes Sales 52,000,000 650,00 Contribution margin Fixed out-of-pocket cash expenses Depreciation Net operating income $300,000 110,000 410 $ 170,000 Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(a) using the tables provided. All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 11% Required: a. Compute the project's net present value. (Round your intermediate calculators and final answer to the nearest whole dollar amount.) b. Compute the project's internal rate of return (Round your final answer to the nearest whole percent.) c. Compute the project's payback period. (Round your answer to 2 decimal place.) d. Compute the project's simple rate of return. (Round your final answer to the nearest whole percent.) 1 Click here to view Exhibit 140-1 and ExhID 0-2. to determine the appropriate discount factors using the sales provided All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 19% Required: a. Compute the project's not present value (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Compute the project's Internal rate of return (Round your final answer to the nearest whole percent.) c Compute the project's payback period (Round your answer to 2 decimal place.) d. Compute the project's simple rate of return (Round your final answer to the nearest whole percent.) a. Net present value b. Internal rate of return c. Payback period d. Simple rate of return %6 years %

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