What is the correct answer?Homework Answers
Annual savings = $80,000
Period = 5 years
Interest rate = 8%
Present value = Future value / (1 + R)T
Present value of the cash savings = $80,000 * PVAF(8% , 5 years)
Present value of the cash savings = $80,000 * 3.99271
Present value of the cash savings = $319,416.80
Add Answer to:
What is the correct answer?
Incognito Company is contemplating the purchase of a machine that provides...
just google the factor table its the same everywhere Incognito Company is contemplating the purchase of...
just google the factor table its the same everywhere
Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $86,000 per year for five years. Interest is 9%. Assume the cash savings occur at the end of each year. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the present value of the cash savings....
Baird Bros. Construction is considering the purchase of a machine at a cost of $136,000. The...
Baird Bros. Construction is considering the purchase of a machine at a cost of $136,000. The machine is expected to generate cash flows of $27,000 per year for 10 years and can be sold at the end of 10 years for $17,000. Interest is at 10%. Assume the machine purchase would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. (FV of...
Incognito Company is contemplating the purchase of a machine that provides it with cash savings of...
Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $85,000 per year for five years. Interest is 8%. Assume the cash savings occur at the end of each year. Required: Calculate the present value of the cash savings. Calculate the present value of the cash savings
Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in...
Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in cash savings of $10,000 the first year, $16,000 for the next two years, and $19,000 for the next two years. Interest is at 10%. Assume cash flows occur at the end of the year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the total...
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the...
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $920,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years Amount 1-6 $ 92,000 7 82,000 8 72,000...
Baird Bros. Construction is considering the purchase of a machine at a cost of $128,000. The...
Baird Bros. Construction is considering the purchase of a machine at a cost of $128,000. The machine is expected to generate cash flows of $23,000 per year for 10 years and can be sold at the end of 10 years for $13,000. Interest is at 12%. Assume the machine purchase would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. (FV of...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine...
Harding Company is in the process of purchasing several large
pieces of equipment from Danning Machine Corporation. Several
financing alternatives have been offered by Danning: (FV of $1, PV
of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
1. Pay $1,120,000 in cash immediately.
2. Pay $430,000 immediately and the remainder in 12 annual
installments of $81,000, with the first installment due in one
year.
3. Make...
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the...
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $820,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years 1-6 7 8 Amount $82,000 72,000 62,000 52,000...
A company issued 6%, 15-year bonds with a face amount of $67 million. The market yield...
A company issued 6%, 15-year bonds with a face amount of $67 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Table values are based...
A company issued 6%, 15-year bonds with a face amount of $55 million. The market yield...
A company issued 6%, 15-year bonds with a face amount of $55 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1. PV of $1 FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Table values are based...
just google the factor table its the same everywhere
Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $86,000 per year for five years. Interest is 9%. Assume the cash savings occur at the end of each year. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the present value of the cash savings....
Harding Company is in the process of purchasing several large
pieces of equipment from Danning Machine Corporation. Several
financing alternatives have been offered by Danning: (FV of $1, PV
of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
1. Pay $1,120,000 in cash immediately.
2. Pay $430,000 immediately and the remainder in 12 annual
installments of $81,000, with the first installment due in one
year.
3. Make...
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $820,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years 1-6 7 8 Amount $82,000 72,000 62,000 52,000...
A company issued 6%, 15-year bonds with a face amount of $67 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Table values are based...
A company issued 6%, 15-year bonds with a face amount of $55 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1. PV of $1 FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Table values are based...
Most questions answered within 3 hours.
-
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 37 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 1 hour ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 1 hour ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 1 hour ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 2 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 2 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 3 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 3 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 3 hours ago -
Why are polymers not typically casted into products?
asked 3 hours ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 3 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 3 hours ago