Extracted text: Net Present Value Even though you're fairly certain that your evaluation and elimination is correct, you would like to compare the three proposals using the net present value method, and get some data about the internal rate of return of the proposals, each of which are expected to generate their respective annual net cash inflows for a period of 10 years. Compute the net present value of each proposal. You may need the following partial table of factors for present value of an annuity of $1. Round the present value of annual net cash flows to the nearest dollar. If your answer is zero enter "0". For the net present value, if required, use the minus sign (-) to indicate a negative amount. Present Value of an Annuity of $1 at Compound Interest (Partial Table) Year 10% 20% 1 0.909 0.833 3.791 2.991 10 6.145 4.192 Alpha Beta Gamma Annual net cash flow Present value factor Present value of annual net cash flows Amount to be invested Net present value
Extracted text: Average Rate of Return You begin by trying to eliminate any proposals that are not yielding the company's minimum required rate of return of 20%. Complete the following table, and decide whether Alpha, Beta, and/or Gamma should be eliminated because the average rate of return of their project is less than the company's minimum required rate of retur Complete the following table. Enter the average rates of return as percentages rounded to two decimal places. Estimated Average Average Average Rate Accept or Proposal Annual Income Investment of Return Reject Alpha 2$ 302,054 $ 736,000 41.04 % Аcсept v Beta 272,019 2,839,450 9.58 V Reject Gamma 521,931 1,062,780 49.11 Аcсept v Feedback V Check My Work Review the definition of average rate of return, and plug the relevant numbers into the formula from the data given. Cash Payback Method You've decided to confirm your results from the average rate of return by using the cash payback method. Using the following table, compute the cash payback period of each investment. If required, round the number of years in the cash payback period to a whole number. Annual Net Cash Payback Proposal Initial Cost Cash Inflow Period in Years Alpha $ 1,472,000 $4 351,145 4 Beta 5,678,900 475,608 12 Gamma 2,125,560 598,133 V 4