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Questions regarding income statements and etc
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BBA 3310 Unit VII Assignment
Instructions: Enter all answers directly in this worksheet. When finished select Save As, and save this
document using your last name and student ID as the file name. Upload the data sheet to Blackboard as
a .doc, .docx or .rtf file when you are finished.
Question 1: (10 points). (Net present value calculation) Dowling Sportswear is considering building a new
factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000
and would generate annual net cash inflows of $900,000 per year for 7 years. Calculate the project's NPV
using a discount rate of 5 percent. (Round to the nearest dollar.)
a. If the discount rate is 5 percent, then the project's NPV is:
$1,207,736
Question 2: (30 points). (Net present value calculation) Big Steve's, makers of swizzle sticks, is
considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of
$90,000 and will generate net cash inflows of $19,000 per year for 11 years. To answer Choose a...