cash flow for current system
Total defective units-detected
=1800-1260
=540 UNITS
year 3 cash flow
Annual inspection cost -repairing cost *units repaired- refunded units
= -$40,000 -($80*1260UNITS)-540*$193
=-40,000-$1,00,800-$104,220
= -245,020$
new system cash flow in year 3
annual inspection cost -repairing cost*units repaired - refunded units
= -[40000+24000increase]-310*$42-[380-310]*193*120%
= -64000-13020-16212
= -93,232
NPV
CURRENT SYSTEM
YEAR | cash flow | PV factor at 6% | present value | |
1-5 | -245,020 | 4.2124 | $1,032,122[$245,020*4.2124] | |
new system
YEAR | cash flow | PV factor at 6% | present value |
1-5 | -93,232 | 4.2124 | $392,730[$93,232*4.2124] |
0 | -$200,000 | 1 | -$200,000 |
0 | -$460,000 | 1 | -$460,000 |
5 | $20,000 | 0.7473 | $14,946 |
NET PRESENT VALUE | -$1,037,784[392730+200000+460000-14946] |
IMPORTANT Questions 1 & 2 ask for cash flows only, no present values. They are a...
IMPORTANT Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing...
IMPORTANT Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing...
IMPORTANT Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing...
Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing Company...
Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing Company...
Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing Company...
Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing Company...
Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. ______________________________________________________ The Brisbane Manufacturing...
Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $204 with a resulting contribution margin of $72. Brisbane's management is considering a change in its quality...
Questions 18 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the nat present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing Company produces...