Wilson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $50,000. The equipment will have...
Wilson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $50,000. The equipment will have an initial cost of $626,000 and have an 8 year life. The salvage value of the equipment is estimated to be $114,000. If the hurdle rate is 11%, what is the approximate net present value? i have posted this same question several times but the answers aren't correct. the answer should be 10,120. i would like to know all the steps to solve this problem
Homework Answers
Add Answer to:
Wilson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $50,000. The equipment will have...
Dobson Corp. is considering the purchase of a new piece of equipment. The cost savings from...
Dobson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $54,000. The equipment will have an initial cost of $517,000 and have an eight year life. There is no salvage value of the equipment. The hurdle rate is 12%. Ignore income taxes. a. Calculate accounting rate of return. (Round your answer to 2 decimal places.) Rate of Return : b. Calculate payback...
Mindy Corp. is considering the purchase of a new piece of equipment. The cost savings from...
Mindy Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an increase in net income tar tax of $50,000. The equipment will have an ini cost of $500,000 and have an 8 year . The equipment has no vage value. The hurdle rate is 10% V O L. Present F . r uity 1. Present Amity of Use appropriate factor from the PV tables a. What is the net...
Belmont Corp. is considering the purchase of a new piece of equipment. The cost savings from...
Belmont Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $200,000. The equipment will have an initial cost of $1,000,000 and have an 8-year life. If there is no salvage value of the equipment, what is the payback period? 8 years 5 years 1.6 years 3.08 years
Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from...
Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $400,000 and have a 5-year life. The salvage value of the equipment is estimated to be $75,000. If the hurdle rate is 10%, what is the internal rate of return? (Future Value of $1, Present Value of $1, Future Value Annuity of $1,...
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from...
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 7-year life. If the salvage value of the equipment is estimated to be $75,000, what is the payback period? 2.73 years 7.00 years 4.00 years 4.75 years
Nelson Corp is considering the purchase of a new piece of equipment. The cost savings from...
Nelson Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $173,850. The equipment will have an initial cost of $605,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $250,000, what is the accounting rate of return? Ignore income taxes. a. 28.74% b. 17.00% c. 14.50% d. 30.41%
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from...
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $112.000. The equipment will have an initial cost of $224,000 and have a 3 year life. If the salvage value of the equipment is estimated to be $87,000, what is the payback period? Ignore income taxes Multiple Choice 0 122 years O 200 years O 278 years O 500 years O
Newport Corp, is considering the purchase of a new plece of equipment The cost savings from...
Newport Corp, is considering the purchase of a new plece of equipment The cost savings from the equipment would result in an annual increase in cash flow of $207,000. The equipment will have an initisal cost of $951,000 and have a 6 year life. There is no salvage value for the equipment If the hurdle rate is 99%. what is the $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) of net...
Cloud Corp. is considering the purchase of a new piece of equipment Cloud Corp. is considering...
Cloud Corp. is considering the purchase of a new piece of
equipment
Cloud Corp. is considering the purchase of a new piece of equipment. The equipment costs $30,110, and will have a salvage value of $4,110 after nine years. Using the new piece of equipment will increase Cloud's annual cash flows by $6,110. Cloud has a hurdle rate of 13%. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate...
Wright Corp. is considering the purchase of a new piece of equipment, which would have an...
Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1 $ 375,000 Year 2 $ 350,000 Year 3 $ 285,000 Year 4 $ 230,000 Year 5 $ 185,000 What is the payback period? 3.00 years 2.96 years 2.39 years 3.51 years
Dobson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $54,000. The equipment will have an initial cost of $517,000 and have an eight year life. There is no salvage value of the equipment. The hurdle rate is 12%. Ignore income taxes. a. Calculate accounting rate of return. (Round your answer to 2 decimal places.) Rate of Return : b. Calculate payback...
Mindy Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an increase in net income tar tax of $50,000. The equipment will have an ini cost of $500,000 and have an 8 year . The equipment has no vage value. The hurdle rate is 10% V O L. Present F . r uity 1. Present Amity of Use appropriate factor from the PV tables a. What is the net...
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $112.000. The equipment will have an initial cost of $224,000 and have a 3 year life. If the salvage value of the equipment is estimated to be $87,000, what is the payback period? Ignore income taxes Multiple Choice 0 122 years O 200 years O 278 years O 500 years O
Newport Corp, is considering the purchase of a new plece of equipment The cost savings from the equipment would result in an annual increase in cash flow of $207,000. The equipment will have an initisal cost of $951,000 and have a 6 year life. There is no salvage value for the equipment If the hurdle rate is 99%. what is the $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) of net...
Cloud Corp. is considering the purchase of a new piece of
equipment
Cloud Corp. is considering the purchase of a new piece of equipment. The equipment costs $30,110, and will have a salvage value of $4,110 after nine years. Using the new piece of equipment will increase Cloud's annual cash flows by $6,110. Cloud has a hurdle rate of 13%. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate...
Most questions answered within 3 hours.
-
1.How large must the coefficient of static friction be between
the tires and the road if...
asked 13 minutes ago -
What is the time complexity (Big-O) of the following code?
class Main
{
// Recursive...
asked 13 minutes ago -
Economists look at any situation in terms of its component
parts: the people making decisions, the...
asked 19 minutes ago -
What is a population?
Select one:
a. All of the individual organisms belonging to the same...
asked 23 minutes ago -
You have a yeast cell culture with a concentration of 5x10^4
cells/ml. If you dilute this...
asked 27 minutes ago -
In which direction the Reaction goes? Show detailed process.
SeO3 + 2ClO2. + 2H3O <---> Se...
asked 40 minutes ago -
Unexposed silver halides are removed from photographic film when
they react with sodium thiosulfate
(Na2S2O3, called...
asked 41 minutes ago -
A 0.3054 gram sample of the mineral chalcopyrite (CuFeS2)
yielded 0.6525 gram BaSO4 precipitate. What is...
asked 41 minutes ago -
An short-seller in Tesla is worried the latest management
earnings forecast is too aggressive and the...
asked 1 hour ago -
Question 3 (1 point)
Fill in the blank. Speed Car Rental company found that the tire...
asked 1 hour ago -
1. A copper wire is 26.61 cm long and weighs 1.265 g. The
density of copper...
asked 1 hour ago -
Remember that a concept sketch consists of a sketch (or
series of sketches), labels, and complete...
asked 1 hour ago