Particulars | Year 1 | Year 2 | Year3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 |
Cash Inflow | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
Salvage | 10,000 | ||||||||
Maintainence Expenses | 7000 | 30,000 | |||||||
0.9259 | 0.8573 | 0.7938 | 0.735 | 0.6806 | 0.6302 | 0.5835 | 0.5403 | 0.5002 | |
Net inflow | 46,295 | 42,865 | 39,690 | 31,605 | 34,030 | 31,510 | 29,175 | 10,806 | 30,012 |
Total Inflow | 2,95,988 ( Sum of net inflow) | ||||||||
Total outflow | 297000 (247000+50,000) | ||||||||
NPV | -1,012 ( 2,95,988-297000) |
please high light answer Taylor Company is considering the purchase of a new machi ne. The...
Taylor Company is considering the purchase of a new machine. The machine will cost $247,000 and is expected to last for 9 years. However, the machine will need maintenance costing $7,000 at the end of year four and maintenance costing $30,000 at the end of year eight. In addition, purchasing this machine would require an immediate investment of $50,000 in working capital which would be released for investment elsewhere at the end of the 9 years. The machine is expected...
Taylor Company is considering the purchase of a new machine. The machine will cost $247,000 and is expected to last for 9 years. However, the machine will need maintenance costing $7,000 at the end of year four and maintenance costing $30,000 at the end of year eight. In addition, purchasing this machine would require an immediate investment of $50,000 in working capital which would be released for investment elsewhere at the end of the 9 years. The machine is expected...
Taylor Company is considering the purchase of a new machine. The machine will cost $247,000 and is expected to last for 9 years. However, the machine will need maintenance costing $7,000 at the end of year four and maintenance costing $30,000 at the end of year eight. In addition, purchasing this machine would require an immediate investment of $50, 000 in working capital which would be released for investment elsewhere at the end of the 9 years. The machine is...
Taylor Company is considering the purchase of a new machine. The machine will cost $247,000 and is expected to last for 9 years. However, the machine will need maintenance costing $7,000 at the end of year four and maintenance costing $30,000 at the end of year eight. In addition, purchasing this machine would require an immediate investment of $50, 000 in working capital which would be released for investment elsewhere at the end of the 9 years. The machine is...
Question 7 4.5 pts Taylor Company is considering the purchase o f a new machine. The machine will cost $247,000 and is expected to last f or 9 years. However, the machine will need maintenance costing $7,000 at the end of year four and maintenance costing $30,000 at the end o f year eight. In addition, purchasing this machine would require an imm ediate investment of $50,000 in working capital which would be released f or investment elsewhere at the...
XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: Initial investment ........ Annual cost savings Salvage value in 6 years .. Repair in 4 years ....... Cost of capital Life of project .. $20,000 20% of original cost of the equipment $14,000 10% 6 years The net present value of this new equipment was -$37,779. Calculate the salvage value for this piece of equipment. You will need to...
XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: Initial investment .............. ? Annual cost savings ............. $20,000 Salvage value in 6 years ........ 20% of original cost of the equipment Repair in 4 years ............... $14,000 Cost of capital ................. 10% Life of project ................. 6 years The net present value of this new equipment was -$37,779. Calculate the salvage value for this piece of equipment. You...
XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: Initial investment ........ Annual cost savings Salvage value in 6 years .. Repair in 4 years ....... Cost of capital Life of project .. $20,000 20% of original cost of the equipment $14,000 10% 6 years The net present value of this new equipment was -$37,779. Calculate the salvage value for this piece of equipment. You will need to...
XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: Initial investment ........ Annual cost savings Salvage value in 6 years .. Repair in 4 years ....... Cost of capital Life of project .. $20,000 20% of original cost of the equipment $14,000 10% 6 years The net present value of this new equipment was -$37,779. Calculate the salvage value for this piece of equipment. You will need to...
XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: Initial investment Annual cost savings $20,000 Salvage value in 6 years 20% of original cost of the equipment Repair in 4 years Cost of capital $14,000 10% Life of project 6 years The net present value of this new equipment was -$37, 779 Calculate the salvage value for this piece of equipment. You will need to use the time...