Management is considering the following three investment pro…

Management is considering the following three investment projects:    Project X Project Y Project Z Investment required $ 37,000 $ 55,000 $ 82,000 Present value of cash inflows $ 38,480 $ 62,150 $ 90,200 Rank the projects according to the profitability index, from most profitable to least profitable.

A company has a minimum required rate of return of 10%. The…

A company has a minimum required rate of return of 10%. The company is considering investing in a factory machine, which costs $100,000 and has an expected life of 5 years. The machine has a zero salvage value and will be depreciated using the straight-line depreciation method. The company expects to generate an extra $24,000 of annual cash flows each of the next 5 years because of this new factory machine. How much extra net income will the company earn each of the 5 years?Show the numbers you use to calculate your answer.

An expansion at a small company would increase sales revenue…

An expansion at a small company would increase sales revenues by $150,000 per year and cash operating expenses by $47,000 per year. The initial investment would be for equipment that would cost $328,000 and have an 8 year life with no salvage value. The annual depreciation on the equipment would be $41,000. The simple rate of return on the investment is closest to (Ignore income taxes.):