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Could you please solve the attached practice quest...




Could you please solve the attached practice questions? Thank you!,Thank you! Does this Indicate that you have accepted the assignment?,Could you also answer these 5 questions as well? Thanks! 34. Torjan Co., expects investments in a project to generate additional annual after-tax incomes of $375,000, $325,000, $475,000, $275,000, and $75,000 over a five-year period. Assume that the average book value of the project over the five-year is $1,150,000. What is the accounting rate of return (ARR) on the project? a. 32.68% b. 6.52% c. 26.52% d. 41.30% 35. Potomac Real Estate is planning to invest in a new development project. The cost of the new development will be $27 million. The project is expected to generate $12,250,000, $20,064,000, and $24,000,000 over the next three years. If the appropriate discount rate is 12 percent, what is the NPV of the project. a. $29,314,000 b. $17,015,124 c. $12,320,000 d. $17,925,000 36. Samsun Company is planning to invest in a new project. The cost of the project will be $30 million and is expected to generate cash flows of $12,200,000, $22,326,000, and $9,084,240 over the next three years. The company?s cost of capital is 15 percent. What is the internal rate of return on this project? a. 15% b. 18% c. 20% d. 22% 37. What is the IRR of a project with an initial outlay of $45,000 and a single cash inflow of $100,000 in year 6 (round to the nearest percent)? A. 10% B. 11% C. 12% D. 14%,Thanks. I was able to solve questions 34,35,36 & 37.,Dear Michael, Thank you so much for your help, and for your thorough explanations of each problem (I understand them much better now). Also thank you for taking the extra step to solve problems 34-37, I got the same answers as you which is a great confirmation, but initially I wasn't sure whether what I got was correct. I'll be sure to leave a positive feedback!!


Paper#6161 | Written in 18-Jul-2015

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