Extra cost of Machine B = 73,000-52,000 = $21000 | ||
Year | Incremental Cash flows | Cumulative Cash flows |
0 | -21000 | -21000 |
1 | -1000 | -22000 |
2 | 4000 | -18000 |
3 | 5000 | -13000 |
4 | 5000 | -8000 |
5 | 3000 | -5000 |
6 | 3000 | -2000 |
7 | 2000 | 0 |
Hence, payback period = 7 years | ||
i.e. F |
question 11 not 10 present value of lading 10. AO $-1,288 BO S-1.610 CO S-2,012 DO...
table is in a different pic present value of a 10. AO S-1,288 BO S-1.610 CO 8-2,012 D - 10 18 pt X Company must replace one of its current machines with either Maciine A or Machine B. The seful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B S-6,000 5.7.000 -4,000 -8,000 -3.000 -8,000 -3,000 3.000 -2,000 -2,000...
question 11 not 10 present value of launching 10. AO S-1,288 BO S-1.610 DO 8-2,516 DU CO S-2,012 18 pt X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B 5-6,000 S-7,000 -8,000 -4,000 -3,000 -8,000 -3,000 -6,000 -3,000 -5,000 -2,000 -2,000...
question 11, table in the next pic present value of launching the 10. AO $-1,288 BO S-1,610 CO S-2,012 DO 8-2,516 D 8 pt X Company must replace one of its current machines with either Machine A or Machine B. The useful life of machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B S-6,000 S-7,000 -8,000 -4,000 -8,000 -3,000 -3,000 -6,000 -5,000...
plz help! present value of launching to 10. AO S-1,288 BO S-1,610 CO S-2,012 DO 8-2,516 D 8 pt X Company must replace one of its current machines with either Machine A or Machine B. The useful life of by machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B Year 5-6,000 $-7,000 -8,000 -4,000 -8,000 -3,000 -8,000 -3,000 -3,000 -5,000 -2,000 -6,000...
. A $2,179 BU 55,100 8 pt X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $12.00 in each of the first two years and $106.000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $83,000. New manufacturing...
Period 3% 4% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 5% 0.952 0.907 0.864 0.823 0.962 0.925 0.889 0.855 0.822 0.790 10.760 0.731 99 Present Value of $1.00 6% 7% 8% 0.943 0.890 0.840 0.792 0.917 0.842 0.772 0.784 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.582 0.747 0.705 0.665 0.746 0.926 0.857 0.794 0.735 0.681 0.630 | 0.583 0.540 11% 0.901 0.812 0.731 0.659 0.593 10.535 0.482 0.434 10.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 12%...
PE Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $48.000, and Machine B costs $51.000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B S-6,000 $-7,000 -4,000 -8,000 -3,000 -8.000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 -8.000 If X Company buys Machine B instead of Machine A, what is the payback period in...
8 pt X Company must replace one of its current machines with machines is seven years. Machine A costs $52,000, and Machine B replace one of its current machines with either Machine A or Machine B. The useful life of both machines are as follows: Machine A costs $52,000, and Machine B costs $60,000. Estimated annual cash flows with the two Year Machine A Machine B $-6,000 $-7,000 -8,000 -4,000 -3,000 -8,000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 -8,000...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $51,000, and Machine B costs $59,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 7 -4,000 -2,000 If X Company buys Machine B instead of Machine...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $55,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000. -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 7 -4,000 -2,000 If X Company buys Machine B instead of Machine...