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?
Homework Answers
| Annual cash flows | 4500 | |
| X PV factor (10%,7 years) | 4.86842 | =(1-(1.10)^-7)/0.10 |
| Present value of the retreading operation | 21907.89 |
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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...
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. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the foctor table provided) What is the present value of the retreading operation? (Round answer...
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...
4.1 Itata Limited has the choice of purchasing one of two machines viz. Machine L or...
4.1 Itata Limited has the choice of purchasing one of two machines viz. Machine L or Machine T. Both machines have a five-year life. The annual revenues from each machine are estimated at R2 000 000. Machine L is not expected to have a scrap value. Machine L costs R4 500 000. Its annual cash operating costs are estimated at R680 000. Machine T costs R4 500 000. Its annual cash operating costs are estimated at R700 000. The scrap...
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. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the foctor table provided) What is the present value of the retreading operation? (Round answer...
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...
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