Homework Answers
| Annual net cash flows | 4500 | |
| X PV factor | 4.86842 | =(1-(1.10)^-7)/0.10 |
| Present value | 21907.89 | |
| Present value of net cash flow exceeds investment cost | ||
| Barney Googal should purchase the retreading machine | ||
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Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $20,820. After estimating...
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $20,820. After estimating cost...
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $20,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $4,500 annually for 7 years. Barney hopes to earn a return of 10% on such investments. What is the present value of the retreading operation?
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $25,820. After estimating cost...
Barney Googal owns a garage and is contemplating purchasing a
tire retreading machine for $25,820. After estimating costs and
revenues, Barney projects a net cash inflow from the retreading
machine of $4,900 annually for 7 years. Barney hopes to earn a
return of 6% on such investments.
What is the present value of the retreading operation?
(Round answer to 2 decimal places, e.g.
25.25.)
Present value
$
Should Barney Googal purchase the retreading machine?
Barney Googal
purchase the retreading machine.
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $26,820. After...
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $26,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $4,200 annually for 10 years. Barney hopes to earn a return of 8% on such investments (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the retreading operation? (Round answer to 2 decimal places, e.g. 25.25.) Should Barney...
Brief Exercise A-22 Barney Googal owns a garage and is contemplating purchasing a tire retreading machine...
Brief Exercise A-22 Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $13,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $2,600 annually for 7 years. Barney hopes to earn a return of 6% on such investments. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the retreading operation?...
ment FULL SCREEN PRINTER VERSION NEXT Brief Exercise A-22 Barney Googal owns a garage and is...
ment FULL SCREEN PRINTER VERSION NEXT Brief Exercise A-22 Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $15,820. After estimating costs and revenues, Barney projects a net cash Inflow from the retreading machine of $3,900 annually for 6 years. Barney hopes to earn a return of 9% on such Investments Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the...
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...
bates company issued 1,200,000, 13 year bonds. it agreed to make annual deposits of 73,500 to...
bates company issued 1,200,000, 13 year bonds. it agreed to make
annual deposits of 73,500 to a fund, which will be used to pay off
the principal amount of the bond at the end of 13 years. The
deposits are made at the end of the year into an account paying 4%
annual interest. what amount will be in the sinking fund at the end
of 13 years?
Amount in sinking funds-
he estimating costs and revenu e Brief Exercise...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine B $181,000 8 years Machine A Original cost $77,700 Estimated life 8 years Salvage value Estimated annual cash inflows $20,500 Estimated annual cash outflows $5,070 $40,400 $10,000 Click here to view PV table. Calculate the net present value and profitability index...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine B $184,000 8 years Machine A Original cost $78,000 Estimated life 8 years Salvage value Estimated annual cash inflows $19,800 Estimated annual cash outflows $4,820 $40,300 $10,160 Click here to view PV table. Calculate the net present value and profitability index...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn’t equipped to do. Estimates regarding each machine are provided below. Machine A Machine B Original cost $77,300 $180,000 Estimated life 8 years 8 years Salvage value 0 0 Estimated annual cash inflows $20,200 $40,000 Estimated annual cash outflows $4,970 $9,860 Click here to view PV table. Calculate the net present value and...
Barney Googal owns a garage and is contemplating purchasing a
tire retreading machine for $25,820. After estimating costs and
revenues, Barney projects a net cash inflow from the retreading
machine of $4,900 annually for 7 years. Barney hopes to earn a
return of 6% on such investments.
What is the present value of the retreading operation?
(Round answer to 2 decimal places, e.g.
25.25.)
Present value
$
Should Barney Googal purchase the retreading machine?
Barney Googal
purchase the retreading machine.
Brief Exercise A-22 Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $13,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $2,600 annually for 7 years. Barney hopes to earn a return of 6% on such investments. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the retreading operation?...
ment FULL SCREEN PRINTER VERSION NEXT Brief Exercise A-22 Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $15,820. After estimating costs and revenues, Barney projects a net cash Inflow from the retreading machine of $3,900 annually for 6 years. Barney hopes to earn a return of 9% on such Investments Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the...
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...
bates company issued 1,200,000, 13 year bonds. it agreed to make
annual deposits of 73,500 to a fund, which will be used to pay off
the principal amount of the bond at the end of 13 years. The
deposits are made at the end of the year into an account paying 4%
annual interest. what amount will be in the sinking fund at the end
of 13 years?
Amount in sinking funds-
he estimating costs and revenu e Brief Exercise...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine B $181,000 8 years Machine A Original cost $77,700 Estimated life 8 years Salvage value Estimated annual cash inflows $20,500 Estimated annual cash outflows $5,070 $40,400 $10,000 Click here to view PV table. Calculate the net present value and profitability index...
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine B $184,000 8 years Machine A Original cost $78,000 Estimated life 8 years Salvage value Estimated annual cash inflows $19,800 Estimated annual cash outflows $4,820 $40,300 $10,160 Click here to view PV table. Calculate the net present value and profitability index...
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