Time 0 | Time 1 | Time 2 | Time 3 | Time 4 | |
Acquisition Cost | $ -39,300 | ||||
Investment In Working Capital | $ -3,000 | ||||
Recovery Of Working Capital | $ 3,000 | ||||
Salvage Value Of Old Machinery | $ 830 | ||||
Salvage Value Of New Machinery | $ 2,030 | ||||
Annual Operating Savings | $ 12,650 | $ 12,650 | $ 12,650 | $ 12,650 | |
Total Cash Flow | $ -41,470 | $ 12,650 | $ 12,650 | $ 12,650 | $ 17,680 |
Discount Factor | 1.000 | 0.909 | 0.826 | 0.751 | 0.683 |
Present Value | $ -41,470 | $ 11,499 | $ 10,449 | $ 9,500 | $ 12,075 |
Net Present Value | $ 2,053 |
The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery....
The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery. This machinery has zero book value but its current market value is $830. One possible alternative is to invest in new machinery, which has a cost of $39,300. This new machinery would produce estimated annual operating cash savings of $12,650. The estimated useful life of the new machinery is four years. The DOT uses straight-line depreciation. The new machinery has an estimated salvage value...
The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery. This machinery has zero book value but its current market value is $930. One possible alternative is to invest in new machinery, which has a cost of $40,300. This new machinery would produce estimated annual operating cash savings of $13,150. The estimated useful life of the new machinery is four years. The DOT uses straight-line depreciation. The new machinery has an estimated salvage value...
The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery. This machinery has zero book value but its current market value is $840. One possible alternative is to invest in new machinery, which has a cost of $39,400. This new machinery would produce estimated annual operating cash savings of $12,700. The estimated useful life of the new machinery is four years. The DOT uses straight-line depreciation. The new machinery has an estimated salvage value...
I am checking to see if I missing anything in this problem? Thank you! The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery. This machinery has zero book value but its current market value is $960. One possible alternative is to invest in new machinery, which has a cost of $40,600. This new machinery would produce estimated annual operating cash savings of $13,300. The estimated useful life of the new machinery is four...
(DOT) is considering the replacement of some machinery. This machinery 3 annual operating cash savings of $13,150. The which would be recovered after four years December 31, 20x1. The cash flows from the investment will occur during the calendar years 20x2 through 20x5 (Use appropriate factorisj from the tabies provided Round your Discount factors" indiceted by e minus signj to 3 decimal places and final dollar amounts to whole dollars. Negative amounts should be
Rockyford Company must replace some machinery that has zero book value and a current market value of $3,000. One possibility is to invest in new machinery costing $52,000. This new machinery would produce estimated annual pretax cash operating savings of $20,800. Assume the new machine will have a useful life of 4 years and depreciation of $13,000 each year for book and tax purposes. It will have no salvage value at the end of 4 years. The investment in this...
Rockyford Company must replace some machinery that has zero book value and a current market value of $2,400. One possibility is to invest in new machinery costing $46,000. This new machinery would produce estimated annual pretax cash operating savings of $18,400. Assume the new machine will have a useful life of 4 years and depreciation of $11,500 each year for book and tax purposes. It will have no salvage value at the end of 4 years. The investment in this...
Rockyford Company must replace some machinery that has zero book value and a current market value of $4,200. One possibility is to invest in new machinery costing $47,000. This new machinery would produce estimated annual pretax cash operating savings of $18,800. Assume the new machine will have a useful life of 4 years and depreciation of $11,750 each year for book and tax purposes. It will have no salvage value at the end of 4 years. The investment in this...
12-6. Rockyford Company must replace some machinery that has zero book value and a current market value of $3,000. One possibility is to invest in new machinery costing $52,000. This new machinery would produce estimated annual pretax cash operating savings of $20,800. Assume the new machine will have a useful life of 4 years and depreciation of $13,000 each year for book and tax purposes. It will have no salvage value at the end of 4 years. The investment in...
Check my work Rockyford Company must replace some machinery that has zero book value and a current market value of $1,400. One possibility is to invest in new machinery costing $36,000. This new machinery would produce estimated annual pretax cash operating savings of $14,400. Assume the new machine will have a useful life of 4 years and depreciation of $9,000 each year for book and tax purposes. It will have no salvage value at the end of 4 years. The...