Crab Company Assignment | College Homework Help

Crab Company is considering a project with an initial investment of $597,000 that is expected to produce cash inflows of $130,500 for ten years. Crab’s required rate of return is 10%. 14. What is the NPV of the project? 15. What is the IRR of the project? 16. Is this an acceptable project for Crab? 5/ (Click on the icon to view Present Value of $1 table.) (Click on the icon to view Present Value of Ordinary Annuity of $1 table.) 14. What is the NPV of the project? (Enter the factor amount to three decimal places, X.XXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net Cash Inflow Annuity PV Factor (i=10%, n=10) Present Value Years 1 – 10 Present value of annuity Investment Net present value 15. What is the IRR of the project? Start by calculating the Annuity PV factor. (Enter the factor amount to three decimal places, X.XXX.) = Annuity PV factor The IRR of the project is 16. Is this an acceptable project for Crab? This Van acceptable project for Crab, because the NPV is than zero and the IRR is than Crab’s required rate of return. Present Value of $1 Periods 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.879 0.870 1% 2% 0.990 0.980 0.980 0.961 0.971 0.942 0.961 0.924 0.951 0.906 0.942 | 0.888 0.933 0.871 0.923 0.853 0.914 0.837 0.905 0.820 0.896 0.804 0.887 0.788 0.773 0.758 0.861 0.743 0.853 0.728 0.844 0.714 0.836 0.700 0.828 0.686 0.820 0.673 0.811 0.660 0.803 0.647 0.795 0.634 0.788 | 0.622 0.610 0.772 0.598 0.764 0.586 0.574 0.749 0.563 0.552 0.672 | 0.453 0.608 0.372 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 | 0.456 0.439 0.422 0.406 0.390 0.375 0.361 0.347 0.333 0.321 0.308 0.208 0.141 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554 0.538 0.522 0.507 0.492 0.478 0.464 0.450 0.437 0.424 0.412 0.307 0.228 5% 6% 0.952 0.943 0.907 0.890 | 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 0.627 0.645 0.592 0.614 0.558 0.585 0.527 1557 0.497 0.530 0.469 0.505 | 0.442 0.481 0.417 0.458 0.394 0.371 0.416 0.350 0.396 0.331 0.377 0.312 0.359 0.294 0.342 0.278 0.326 | 0.262 0.310 | 0.247 0.295 0.233 0.281 0.220 0.268 0.207 0.255 0.196 0.243 0.185 0.231 0.174 0.142 0.097 0.087 0.054 7% 8% 9% 10% 0.935 0.926 0.917 0.909 0.873 0.8570.842 0.826 0.816 0.794 0.772 0.751 0.763 0.735 0.708 0.683 0.713 0.681 0.650 0.621 0.666 0.630 0.596 0.564 0.623 0.583 0.547 0.513 0.582 0.540 0.502 0.467 0.544 0.500 | 0.460 0.424 0.508 0.463 0.422 0.386 0.475 0.429 0.388 0.350 0.444 0.397 0.356 0.319 0.415 0.368 0.326 0.290 0.388 0.340 0.299 0.263 0.362 0.315 0.275 0.239 0.3390.292 0.252 | 0.218 0.317 0.270 0.231 0.198 0.296 0.250 0.212 0.180 0.277 0.232 0.194 0.164 0.258 0.215 0.178 0.149 0.242 0.1990.164 0.135 0.226 0.1840.150 0.123 0.211 0.170 0.138 0.112 0.197 0.158 0.126 0.102 0.184 0.146 0.116 0.092 0.172 0.135 0.106 0.084 0.161 0.125 0.098 0.076 0.150 0.116 0.090 0.069 0.141 0.107 | 0.082 0.063 0.131 0.099 0.075 0.057 0.067 0.046 0.032 0.022 0.034 0.021 0.013 0.009 12% 14% 15% 0.893 0.877 0.870 0.797 0.769 0.756 0.712 0.675 0.658 0.636 0.592 0.572 0.567 0.519 0.497 0.507 0.456 0.432 0.452 0.400 | 0.376 0.404 0.351 | 0.327 0.361 0.308 0.284 0.322 0.270 0.247 0.287 0.237 0.215 0.257 | 0.208 0.187 0.229 0.182 0.163 0.205 0.160 0.160 0.141 0.183 0.140 0.123 0.163 0.123 0.107 0.146 0.108 0.093 0.130 0.095 0.081 0.116 0.083 0.070 0.104 0.073 0.061 0.093 0.064 0.053 0.083 0.056 | 0.046 0.074 0.049 | 0.040 0.066 0.043 0.035 0.059 0.038 0.030 0.053 0.033 0.026 0.047 0.029 0.042 0.026 0.020 0.037 0.022 0.017 0.033 0.020 0.015 0.011 0.005 0.004 0.003 0.001 0.001 16% 18% 20% 0.862 0.847 0.833 0.743 0.7180.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 0.410 0.370 0.335 0.354 0.314 0.279 0.305 0.266 0.233 0.263 | 0.225 0.194 0.227 0.191 0.162 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 0.093 0.071 0.054 0.080 0.060 0.045 0.069 0.051 0.038 0.060 0.043 0.031 0.051 0.037 0.026 0.044 0.031 0.022 0.038 0.026 0.018 0.033 0.022 0.015 0.028 0.019 0.013 0.024 0.0160.010 0.021 | 0.014 0.009 0.018 0.011 0.016 0.010 0.006 0.014 0.008 0.005 0.012 0.007 0.004 0.003 0.001 0.001 0.001 0.436 0.780 0.023 0.007 0.757 0.742 | 20% | 1.528 3.170 | * 25- 3.993 2991 ம 6.728) 6.515 | 4.772 4.833 5.938 | 5.234 4.327 5.421) 5.583 Present Value of Ordinary Annuity of $1 |Periods| 1% | 2% I 3% I 4% | 5% | 6% | | 7% | 8% | 9% | 10% I 12% I 14% I 15% I 16% I 18% | 0.990 | 0.980 | 0.971 | 0.962 | 0.952 0.943 | 0.935 | 0.926 | 0.917 | 0.909 | 0.893 | 0.877 | 0.870 | 0.862 | 0.847 | 0.833 1.970 || 1.942) | 1.913) 1.336 | 1.859/ 1.833 1.808 | 1.783 | 1.759 | 1.736 | 1.690 | 1.647 | 1.626 1.605 1.566 || 2.941 2.884 2.829) 2.775 | 2.723 2.673 2.624 | 2.577 2.531 2.437 | 2.402 | 2.322 | 2.283 2.246 2.174 2.106 3.902 3.808 3.717 3.630) 3.545 3.465 3.387 | 3.312 3.240 3.037 | 2.914 2.855 2.798 2.690) 2.589 4.713 4.580 4.452 4.329 4.212 4.100 3.890 3.791 | 3.605 3.433 3.352 3.274 3.127 1795 5.601 | 5.417 5.242 5.076 4.917 4.767 | 4.623 4.486) 4.355 4.111 | 3.889 3.784 3.685 3.498 | 3.326 6.472 6.230 6.002) 5.786 5.582 5.389 || 5.206 5.033 4.368) 4.564 4.288 | 4.160 4.039 3.812 | 3.605 7.652) 7.325) 7.020 6.733) 6.463 6.210 5.971 | 5.747 5.535 5.335) 4.968) 4.639 | 487 4.344 4.078 | 3.837 8.566 ) 8.162 7.735) 7.435) 7.108 6.802 6.247 5.995 5.759 5.328 4.946 | 4.607 4.303 | 4.031 9.471 | 8.983) 8.530 8.111 | 7.722 7.360 7.024 | 6.710 6.418 6.145) 5.650 5.216 5.019 4.494 | 4.192 10.368 | 9.787 9.787 | 9.253 | 8.760 | 8.306 7.837 7.499/ 7.139 6.805 6.495 5.453 | 5.029 4.656 | 11.255 10.575 | 9.954 9.385) 8.863 8.384 7.943) 7.536 7.161 6.814 6.194 5.660) 5.197 4.793) 4.439 12.134 11.348) | 10.635 | 9.986) 9.394 8.853 8.358 | 7.904 7.487 7.103 6.424 5.842 5.342 4.910 | 4.533 13.004 12.106 | 11.296 | 10.563 9.899 9.295 8.745 8.244 7.736 7.367 6.628 6.002) 5.724 5.468 5.008) 13.865 12.849 | 11.938 | 11.118) 10.380) 9.712 9.108 | 8.559 8.061| 7.606 6.311 6.142 5.847 5.575 5.092 || 4.675 14.718 | 13.578 12.561 | 11.652 | 10.838 | 10.106 9.447 3.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162) 4.730 15.562 | 14.292 13.166 | 12.166 | 11.274 | 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 16.398 | 14.992) 13.754 12.659 11.690 10.828 10.059) 8.756 8.201 | 7.250) | 6.467 6.128 5.818 | 5.273 4.812 17.226 | 15.678 | 14.324 | 13.134 12.085 11.158 10.336 | 9.604 8.950) 8.365 | 7.366 | 6.550 6.198 5.877 | 5.316) 4.844 18.045 | 16.351 | 14.877 13.590 12.462 11.470 | 10.594 | 9.818 9.129 8.514 7.469 | 6.623 6.259 5.929 5.353 4.870 18.857 17.011 15.415 14.029 | 12.821 | 11.764 | 10.836 | 10.017 9.292 8.6491 7.562 6.687 5.973 5.384 4.891 19.660 17.653 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.359 6.011 5.410 4.909 18.292 16.444 14.857 13.489 12.303 | 11.272 10.371 9.580 8.883 7.718 6.792 6.044 5.432 4.925 18.914 16.936 15.247 13.799 12.550) | 11.469 10.529 9.707 8.985 7.734 6.835 6.073 5.451 4.937 19.523 | 17.413 15.622 14.094 12.783 | 11.654 10.675 9.823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 20.121 | 17.877 15.983) 14.375 13.003 || 11.826 | 10.810 | 9.929 9.161 7.896 6.906 491 6.118 5.430 | 4.956 | 18.327 16.330 14.643 13.211 11.987 | 10.935 10.027 9.237 7.943 6.935 6.136 5.492 | 4.964 18.764 16.663 14.898 13.406 12.137 | 11.051 10.116 9.307 7.984 6.961 6.152 5.502 4.970 19.188 16.984 15.141 13.591 12.278) | 11.158 | 10.198 9.370 8.022 6.983 551 6.166 5.510 22.396 | 19.600 | 17.292 15.372 || | 13.765 12.409 | 11.258 | 10.274 ) 9.427 8.055 | 6.177 5.517 | 27.355 | 23.115 | 19.793) 17.159 || 15.046 | 13.332 | 11.925 | 10.757 9.779 | 8.244 | 7.105 | 6.642 6.233) 5.548 31.424 | 25.730 | 21.482 | 18.256 | 15.762 | 13.801 | 12.233 | 10.962 | 9.915 | 8.304 | 7.133 | 6.661 | 6.246 | | 9.372 6.312 6.743 6.399 6.434 20.707 21.281 21.344 | 7.003 து | 5.554 | 4.999)