. The management of Penfold Corporation is considering the purchase of a machine that would cost...
. The management of Penfold Corporation is considering the purchase of a machine that would cost $430,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $95,000 per year. The company requires a minimum pretax return of 13% on all investment projects.
Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided.
The net present value of the proposed project is closest to (Ignore income taxes.):
Homework Answers
| Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks! |
| Penfold Corporation | ||
| Amount $ | Note | |
| Net Investment | 430,000.00 | A |
| Reduction in labor costs | 95,000.00 | B |
| Annuity factor at 13% for 5 years | 3.51723 | C |
| Present Value of Net Cashflow | 334,136.97 | D=B*C |
| Net Present Value | (95,863.03) | E=D-A |
Add Answer to:
. The management of Penfold Corporation is considering the
purchase of a machine that would cost...
he management of Penfold Corporation is considering the purchase of a machine that would cost $400,000,...
he management of Penfold Corporation is considering the purchase of a machine that would cost $400,000, would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 13% on all investment projects. Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is...
Almendarez Corporation is considering the purchase of a machine that would cost $320,000 and would last...
Almendarez Corporation is considering the purchase of a machine that would cost $320,000 and would last for 7 years. At the end of 7 years the machine would have a salvage value of $51,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $72,000. The company requires a minimum pretax return of 18% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 138-2, to determine the appropriate discount...
Almendarez Corporation is considering the purchase of a machine that would cost $150,000 and would last...
Almendarez Corporation is considering the purchase of a machine that would cost $150,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $39,000. The company requires a minimum pretax return of 13% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount...
Almendarez Corporation is considering the purchase of a machine that would cost $120,000 and would last...
Almendarez Corporation is considering the purchase of a machine that would cost $120,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $32,000. The company requires a minimum pretax return of 10% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount...
Almendarez Corporation is considering the purchase of a machine that would cost $160,000 and would last for 4 years. At...
Almendarez Corporation is considering the purchase of a machine that would cost $160,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $17,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $42,000. The company requires a minimum pretax return of 7% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount...
(Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of...
(Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of a machine that would cost $295,000, would last for 4 years, and would have no salvage value. The machine would reduce labor and other costs by $103,000 per year. The company requires a minimum pretax return of 5% on all investment projects. Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. The net present value of...
ABC Corporation is considering the purchase of a machine that would cost $100,000 and would last for 3 years. At the end...
ABC Corporation is considering the purchase of a machine that would cost $100,000 and would last for 3 years. At the end of 3 years, the machine would have a salvage value of $15,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $35,000. The company requires a minimum pretax return of 12% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount...
Almendarez Corporation is considering the purchase of a machine that would cost $200,000 and would last...
Almendarez Corporation is considering the purchase of a machine that would cost $200,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $20,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $44,000. The company requires a minimum pretax return of 8% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount...
Joanette, Inc., is considering the purchase of a machine that would cost $570,000 and would last...
Joanette, Inc., is considering the purchase of a machine that would cost $570,000 and would last for 9 years, at the end of which, the machine would have a salvage value of $57,000. The machine would reduce labor and other costs by $117,000 per year. Additional working capital of $3,000 would be needed immediately, all of which would be recovered at the end of 9 years. The company requires a minimum pretax return of 18% on all investment projects. (Ignore...
Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of...
Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of a machine that would cost $370,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $118,000 per year. The company requires a minimum pretax return of 11% on all investment projects. Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. The present value of the...
Almendarez Corporation is considering the purchase of a machine that would cost $320,000 and would last for 7 years. At the end of 7 years the machine would have a salvage value of $51,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $72,000. The company requires a minimum pretax return of 18% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 138-2, to determine the appropriate discount...
Almendarez Corporation is considering the purchase of a machine that would cost $160,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $17,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $42,000. The company requires a minimum pretax return of 7% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount...
Joanette, Inc., is considering the purchase of a machine that would cost $570,000 and would last for 9 years, at the end of which, the machine would have a salvage value of $57,000. The machine would reduce labor and other costs by $117,000 per year. Additional working capital of $3,000 would be needed immediately, all of which would be recovered at the end of 9 years. The company requires a minimum pretax return of 18% on all investment projects. (Ignore...
Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of a machine that would cost $370,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $118,000 per year. The company requires a minimum pretax return of 11% on all investment projects. Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. The present value of the...
Most questions answered within 3 hours.
-
Explain why case-mix analysis should be performed by
health care facilities. List other types of analysis...
asked 9 minutes ago -
1.
Today Tomorrow
Price of Coke 1.90 2.10
Quantity of Pepsi 297 303
a. Write down...
asked 1 hour ago -
Fluorine-20 has a half-life of 11.0 s. If a sample initially
contains 36.0 μg of this...
asked 1 hour ago -
How many fissions take place per second in a 190-MW reactor?
Assume 200 MeV is released...
asked 3 hours ago -
IQ scores are normally distributed with a mean of 100 and a
standard deviation of 15....
asked 3 hours ago -
You are to assess the biomechanics of a male’s arm using his
bicep to hold a...
asked 5 hours ago -
What is the maximum number of grams of N-acetyl-p-toluidine can
be prepared from 70. milliliters of...
asked 6 hours ago -
A researcher is using a two-tailed hypothesis test with α =
.05 to evaluate the effect...
asked 8 hours ago -
Two long, straight wires are parallel and 8.5 cm apart. The top
wire carries a current...
asked 9 hours ago -
Three arguments used to promote trade barriers are the national
security argument, the infant-industry argument, and...
asked 9 hours ago -
Question 3:
Percentage of Completion
Method (12 marks) On January 1, 2017, Eagle Construction Ltd.
started...
asked 9 hours ago -
A company purchased a tract of land for its natural resources at
a cost of $2,042,900....
asked 9 hours ago