NPV Net present value

Question Help NPV Simes Inngvations, In., is negoiating to purchase euclusive rights to manufacture and market a solar-powered toy car The car's imventor has offered Simes the dhoipe of eiher a one-ime payment of $2,400.000 today or a series of8 vear-end paments of 5400.000. a I Simas has a cast of capital of 13% which torm at paymant shouid chon f 135s e Whet would bour ane to nart a of this oblem if the veery neyments wwe mede the begining of each year? d. The attar tax cash Intiaws associated with this purchase are projected to amount to $260,000 par ycar for 15 years Wil this factor change the firm's decislon about how to fund the inbital investment? a. If Simes has a cost of capital of 13%%, the present value of the annuity is S(Round to the nearest dollar.) im choose? (Solect the bast answer balow.) Which form of payment should OA Lume um paymert ов Алпи вдушеnt b. The yearly payment that would make the two offers identical in value at a cvel of capiial of 13% is Round lo fhe nearest doller.) e present velue of the annuly Round to If the yearly payments were made at the beginning of each year паягеst 4sllar Which foem of peyment should irm choose the annuity payments are paid at the beainning oi each vear? (Select bext Hr below.x OA. Annuty payment OB Lump aum paymens d. The -lax CHsb intues aasocialed w al this fador change he mis decision sbout how to fund the inial imvesiment? (Select the best erewer below) this purchese ere projected to amount to 5260,000 per year for vears OA. Yes, the cash flows from the project will influcnce f decision on how to fund the project The investment and financing decislons are related. OB No the cash tows trom tha projact will ot intluence the decision on how to fund the projact The invastmant and fnancing deciaions a ssparate Cick lo selec your answers) Queshon Hep cer The car's imvector bes offead Simes NPV Simes Innovations, Inc is negotiating to purchase eccusive rights to menulacture and merket a solar-pomered he choice of either a one-lime payment of $2,400.000 todey series of 8 yeer-end payments of 5400,000 It Simas has a cost of canittal ot 11 % weich foem ot naumant shouid it choose? . Wa yea ayna e n t e baniring ofch vear? d. The atter-tax cash inlows associatad with this purchasa ara projected to amaunt to 5260,D00 per year for 15 yaars W his factor change the fm's deciaion ahout how to tund the initital invasment? It Simes has a ooat of capltal of 13%, the prasant valua of the annuity is S (Hound to the naarast dolary Which fum of uavment should the irm choosee? (Select the best anwer below.) OA Lump sum paymant OB. Annuity payment enearest dollar) b. The yeerly payment that would make the two offers identical in value at a cust of capital of 13% is S Round to . If the yearly payments were made at the beginning of each year, the present value of the annuity is 5 Round to the nearest dollar.) tim chonse H tho accu Which form af paymant should payments are pald at the beginning of each year? (Salact the best anawor below) OB um d. The after-tex cash inlows 888ocisted with this purchase are projected to emount to 5260,000 veer for 15 yeers, Will this factor dhange the Sm's decision ebout how to fund the initital ivesment? (Select the best answer below) EHle

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