Harris Corporation Provides the Following Data on a Proposed Capital

question 4

Essay

Harris Corporation provides the following data on a proposed capital project: Harris uses straight-line depreciation method with no salvage value.
Required: Compute for this investment project:
1. NPV (the PV annuity factor for 12%, 4 years is 3.037)
2. IRR (to the nearest tenth of a percent). Note: PV annuity factors for 4 years: @ 8% = 3.312; @ 9% = 3.240; @ 10% = 3.170; @ 11% = 3.102; @ 12% = 3.037; and, @ 13% = 2.974)
3. Payback period (assume that cash inflows occur evenly throughout the year).
4. Accounting rate of return (ARR) on the net initial investment.
5. Discounted payback period (assume that the cash inflows occur evenly throughout the year; round your answer to 2 decimal places). The appropriate PV factors for 12% are as follows: year 1 = 0.893; year 2 = 0.797; year 3 = 0.712; year 4 = 0.636.

---

Definitions:

Behave Aggressively

Exhibiting actions or behaviors that intend to harm or intimidate others physically or psychologically.

Thirst Level

An individual's subjective feeling of needing to drink fluids, often influenced by physiological signals of dehydration.

Drive-Reduction Theory

A theory of motivation suggesting that the motivation arises from biological needs that demand satisfaction, driving individuals to reduce the state of tension through specific behaviors.

Motivated Behavior

Actions that are driven by internal or external forces aiming to satisfy specific needs or achieve particular goals.