Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the...
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $174,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $33,420. internal rate of return:
Homework Answers
| Investment cost | 174000 |
| Divide by Annual cash flows | 33420 |
| PV factor for Internal rate of return | 5.20646 |
| The PV factor 5.20646 for 7 years is closest to 8% | |
| Internal rate of return = 8% | |
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Kanye Company is evaluating the purchase of a rebuilt
spot-welding machine to be used in the...
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the...
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $177,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $35,168. Click here to view PV table. What is its approximate internal rate of return?
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the...
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $177,000, has a estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $35,168.Click here to view PV table. What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 125.) Internal rate of return Internal rate of return
Brief Exercise 26-11 Kanye Company is evaluating the purchase of a rebuilt spot- welding machine to...
Brief Exercise 26-11 Kanye Company is evaluating the purchase of a rebuilt spot- welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $38,564 What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 125.) Internal rate of return
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the...
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $168,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $35,652. Click here to view PV table What is its approximate internal rate of return? (Round answer to O decimal place, es. 13 % ) Internal rate of return % Snyder Company is...
Please help! You've never done me wrong yet! 1A: 1B:1C: Question 1 --/1 View Policies Current Attempt in Progress Kany...
Please help! You've never done me wrong yet!
1A:
1B:1C:
Question 1 --/1 View Policies Current Attempt in Progress Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $166,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $32,982. Click here to view PV table. What is its approximate internal rate of...
A company is evaluating the purchase of a machine to improve product quality and output levels....
A company is evaluating the purchase of a machine to improve product quality and output levels. The new machine would cost $1.6 million and would be depreciated for tax purposes using the straight-line method over an estimated six-year life to its expected salvage value of $100,000. The new machine would require an addition of $70,000 to working capital at the beginning of the project, which will of course be returned to the firm at the end of the project. In...
A company is evaluating the purchase of Machine A. The new machine would cost $120,000 and...
A company is evaluating the purchase of Machine A. The new machine would cost $120,000 and would be depreciated for tax purposes using the straight-line method over an estimated ten-year life to its expected salvage value of $20,000. The new machine would require an addition of $30,000 to working capital. In each year of Machine A’s life, the company would reduce its pre-tax costs by $40,000. The company has a 12% cost of capital and is in the 35% marginal...
Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes....
Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $126,175, including freight and installation. Henrie’s has estimated that the new machine would increase the company’s cash inflows, net of expenses, by $35,000 per year. The machine would have a five-year useful life and no salvage value. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. Required: 1. Compute the...
1. Major Corporation is considering the purchase of a new machine for $5,000. The machine has...
1. Major Corporation is considering the purchase of a new machine for $5,000. The machine has an estimated useful life of 5 years and no salvage value. The machine will increase Major's cash flows by $2,000 annually for 5 years. The company's required rate of return is 10%. What is the payback period for the machine? A) 5.00 years B) 2.50 years C) 7.58 years D) 8.34 years 2. Overland Company has gathered the following data on a proposed investment...
Book & Accounting Bookstore has used an old coding machine for 3 years and to buy...
Book & Accounting Bookstore has used an old coding machine for 3 years and to buy a new coding machine to help control book inventories. The price of new machine is $35,000 and it requires working capital of $4,000. Its estimated useful life is 5 years and estimated salvage value for the calculation of depreciation is $5,000. The disposal value of the new machine will be $6,000 at the end of its useful life. Recovery of working capital will be...
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $177,000, has a estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $35,168.Click here to view PV table. What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 125.) Internal rate of return Internal rate of return
Brief Exercise 26-11 Kanye Company is evaluating the purchase of a rebuilt spot- welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $38,564 What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 125.) Internal rate of return
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $168,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $35,652. Click here to view PV table What is its approximate internal rate of return? (Round answer to O decimal place, es. 13 % ) Internal rate of return % Snyder Company is...
Please help! You've never done me wrong yet!
1A:
1B:1C:
Question 1 --/1 View Policies Current Attempt in Progress Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $166,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $32,982. Click here to view PV table. What is its approximate internal rate of...
1. Major Corporation is considering the purchase of a new machine for $5,000. The machine has an estimated useful life of 5 years and no salvage value. The machine will increase Major's cash flows by $2,000 annually for 5 years. The company's required rate of return is 10%. What is the payback period for the machine? A) 5.00 years B) 2.50 years C) 7.58 years D) 8.34 years 2. Overland Company has gathered the following data on a proposed investment...
Book & Accounting Bookstore has used an old coding machine for 3 years and to buy a new coding machine to help control book inventories. The price of new machine is $35,000 and it requires working capital of $4,000. Its estimated useful life is 5 years and estimated salvage value for the calculation of depreciation is $5,000. The disposal value of the new machine will be $6,000 at the end of its useful life. Recovery of working capital will be...
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