×Ya Logn Natonal un verska week 4 Homework Assis tudent LogalNations html Check
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×Ya Logn Natonal un verska week 4 Homework Assis tudent LogalNations html Check my work mode: This shows what is correct or incorrect for the work you have comp Required information The following information applies to the questions displayed below. Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $350,000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual results. The company uses ton and cash fows occur eveny throughout each year EV ot S1 EV ot S1. PVA ot S1. and EVA of 5 Use appropriate fectorts) from the tobles provided.) 350,000 $280,000 Expenses Direct materials Direct labor Overhead including deprecietion selling and adninistrative expenses Total expenses 49,000 3,000 70,060 42,000 126,008 126,099 Inco" taxes (jes) 56,00036,400 2. Determiee each project's payback period O Answer is complete but not entirely correct. 0,000 20,000 Payback peniod 43.100244 years 1.83 years 153,067183 789|of9? Next > HnasExplanation / Answer
Payback period
Choose Numerator
/
Choose Denominator
=
Payback period
Cost of investment
/
Annual net cash flows
=
Payback period
Project Y
$ 350,000.00
/
$ 143,500.00
=
2.44
years
Project Z
$ 350,000.00
/
$ 153,067.00
=
2.29
years
$280,000 used by you as the cost of investment is the amount of sales of project Z. The cost of investment for both the projects are same as $350,000.
Payback period
Choose Numerator
/
Choose Denominator
=
Payback period
Cost of investment
/
Annual net cash flows
=
Payback period
Project Y
$ 350,000.00
/
$ 143,500.00
=
2.44
years
Project Z
$ 350,000.00
/
$ 153,067.00
=
2.29
years
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