Extra cost of Machine B = 58,000-50,000 = $8000 | ||
Year | Incremental Cash flows | Cumulative Cash flows |
0 | -8000 | -8000 |
1 | -1000 | -9000 |
2 | 4000 | -5000 |
3 | 5000 | 0 |
4 | 5000 | 5000 |
5 | 3000 | 8000 |
6 | 3000 | 11000 |
7 | 2000 | 13000 |
Hence, payback period = 3 years | ||
i.e. B |
8 pt X Company must replace one of its current machines with either Machine A or Machine B. The usefu machines is s...
8 pt X Company must replace one of its current machines with either Machine A Morbine A or Machine B. The useful life of both machines is seven years. Machine A costs $48.000 and Machine Renate $67.000. Estimated annual cash flows with the two machines are as follows: 67000 Year Machine A Machine B S-6,000 S-7,000 -8,000 -4,000 -8,000 -3,000 -8,000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 If X Company buys Machine B instead of Machine A, what is...
8 pt X Comnpany must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $48,000, and Machine B costs $67,000. Estimated annual cash flows with the two machines are as follows: Machine B Machine A Year $-7,000 S-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 1 -4,000 -3,000 3 -3,000 -3,000 -2,000 -2,000 4 6 7 If X Company buys MachineB instead of Machine A,...
pe company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $18,000, and Machine B costs $51.000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B S-6,000 $-7.000 -8.000 -4,000 -8,000 -3,000 -8.000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period in...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $50,000, and Machine B costs $58,000. Estimated annual cash flows with the two machines are as follows: Year von AWN- Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000 -4,000 -3,000 -3,000 -3,000 -2,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $60,000. Estimated annual cash flows with the two machines are as follows: Year NM Machine A $ 6,000 8,000 8,000 8,000 6,000 5,000 4,000 Machine B $ 7,000 4,000 3,000 3,000 3,000 2,000 2,000 N If X Company buys Machine B instead of Machine A, what is...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $51,000, and Machine B costs $70,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 7 -4,000 -2,000 If X Company buys Machine B instead of Machine...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $51,000, and Machine B costs $67,000. Estimated annual cash flows with the two machines are as follows: Year Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000 -4,000 -3,000 -3,000 -3,000 -2,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period (in...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $49,000, and Machine B costs $68,000. Estimated annual cash flows with the two machines are as follows: Year Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000 -4,000 -3,000 -3,000 -3,000 -2,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period (in...