Lambert Manufacturing has $120,000 to invest in either Project A or Project B. The following data are available on these projects (Ignore income taxes.) : Project A Project B Cost of equipment needed now $ 120,000 $ 70,000 Working capital investment needed now - $ 50,000 Annual net operating cash inflows $ 50,000 $ 45,000 Salvage value of equipment in 6 years $ 15,000 - Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor (s) using the tables provided. Both projects have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's discount rate is 14%. The net present value of Project A is closest to: Multiple Choice
a. $82,241
b. $67,610
c. $74,450
d. $81,290
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Lambert Manufacturing has $120,000 to invest in either Project A or Project B. The following data are available on these projects (Ignore ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On January 1, 2020, Swifty Corporation granted an employee an option to purchase 15000 shares of Swifty's $5 par value common stock at $18 per share. The Black-Scholes option pricing model determines total compensation expense to be $341000.
Answers (1)
Which of the following is an example of a market expansion growth opportunity? Group of answer choices Opening new stores in new geographic markets Displaying merchandise to increase impulse purchases Engaging in cross-selling Opening more stores in
Answers (1)
Your aunt has a fear that makes it difficult for her to leave her home. she feels trapped and is unable to work or engage in any type of activity that requires going outside of her home.
Answers (1)
On August 31, 2018, Allright Services received $3,500 in advance of performing the service. Which journal entry is needed to record the receipt of cash?
Answers (1)
All of the following are good ways to assess your interests and skills, except A. randomly selecting your Penn Foster elective classes. B. taking career assessments. C. evaluating your role models. D. asking others what you are good at.
Answers (1)
New Questions in Business
A treasury___is issued by the US government, and is considered very safe. The options are: A. bond B. Mutual fund C. Stock
Answers (2)
Fast Auditors prepared audited financial statements for Mega Company's registration statement in compliance with the 1933 Securities Act. John bought stock in Mega Company.
Answers (1)
After working for a few years to formulate just the right Greek yogurt product, Chobani decided it eventually wanted to mass-market through grocery stores.
Answers (1)
Name 3 elastic materials.
Answers (2)
Sasha is an agent for ABC Insurance Company. Under her agent contract, she is allowed to use the company's logo on her office door and on her business cards. What authority type does this illustrate?
Answers (1)