Compute the net present value for each project round pv

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Reference no: EM13575199

Sanchez Corporation is considering three long-term capital investment proposals. Relevant data on each project are as follows.

	Project
	Brown	Red	Yellow
Capital investment	$191,900	$219,710	$249,200
Annual net income:
Year 1	25,032	20,079	26,002
2	16,357	20,079	24,241
3	13,403	20,079	23,078
4	10,262	20,079	17,402
5	8,357	20,079	20,463
Total	$ 73,411	$100,395	$111,186

Your answer is correct.

Compute the annual rate of return for each project. (Round answers to 1 decimal place, e.g. 10.5%.)

	Annual rate of return
Project Brown	15.3	%
Project Red	18.2	%
Project Yellow	17.8	%

Your answer is correct.

Compute the cash payback period for each project. (Round answers to 2 decimal place, e.g. 5.25.)

	Cash Payback
Project Brown	3.45	years
Project Red	3.43	years
Project Yellow	3.39

Your answer is incorrect. Try again.

Compute the net present value for each project. (Round PV factor to 5 decimal places, e.g. 1.25356 and final answer to 0 decimal places, e.g. 1,255.)

		Net present value
Project Brown		$
Project Red		$
Project Yellow		$

Reference no: EM13575199

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