eBook Calculator Net Present Value-Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing...
Net Present Value—Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $625,304. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $213,000 $266,000 2 190,000 247,000 3 190,000 228,000 4 151,000 234,000 5 115,000 6 96,000 7 83,000 8 83,000 The estimated residual value of the processing mill at the end...
Net Present Value—Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $625,304. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $213,000 $266,000 2 190,000 247,000 3 190,000 228,000 4 151,000 234,000 5 115,000 6 96,000 7 83,000 8 83,000 The estimated residual value of the processing mill at the end...
Net Present Value—Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $659,263. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $226,000 $283,000 2 201,000 262,000 3 201,000 242,000 4 160,000 249,000 5 122,000 6 102,000 7 88,000 8 88,000 The estimated residual value of the processing mill at the end...
Net Present Value—Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $681,948. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $218,000 $273,000 2 194,000 253,000 3 194,000 233,000 4 155,000 240,000 5 118,000 6 98,000 7 85,000 8 85,000 The estimated residual value of the processing mill at the end...
Net Present Value—Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $503,338. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $161,000 $201,000 2 143,000 187,000 3 143,000 172,000 4 114,000 177,000 5 87,000 6 72,000 7 63,000 8 63,000 The estimated residual value of the processing mill at the end...
Net Present Value—Unequal Lives Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $679,829. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $207,000 $259,000 2 184,000 240,000 3 184,000 221,000 4 147,000 228,000 5 112,000 6 93,000 7 81,000 8 81,000 The estimated residual value of the processing mill at the end...
Net Present Value—Unequal Lives Gold Creek Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $508,016. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Year Processing Mill Electric Shovel 1 $173,000 $216,000 2 154,000 201,000 3 154,000 185,000 4 123,000 190,000 5 93,000 6 78,000 7 67,000 8 67,000 The estimated residual value of the processing mill at the end...
Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $423,389. The net cash flows estimated for the two proposals are as follows: Net Cash Flow Electric Shovel Year Processing Mill $145,000 $181,000 129,000 2 168,000 3 129,000 155,000 103,000 4 160,000 5 78,000 6 65,000 7 57,000 57,000 8 The estimated residual value of the processing mill at the end of Year 4 is $180,000....
Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $106,400 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 Year 2 Year 3 Year 4 $35,000 $60,000 22,000 46,000 11,000 35,000 (1,000) 23,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.9090.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567...
Net Present Value-Unequal Lives Project 1 requires an original investment of $76,500. The project will yield cash flows of $11,000 per year for nine years. Project 2 has a calculated net present value of $16,000 over a seven-year life. Project 1 could be sold at the end of seven years for a price of $48,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present...