Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash fl...
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash flows of $30,000 each year for the next 7 years. The machine has a salvage value of $10,000 at the end of its 7 year useful life. Johnson's cost of capital and discount rate is 8%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table?
Homework Answers
| Net present value = present value of cash inflow-initial cost | |||||
| in the given question cash flow is $30000 | |||||
| $30000 dollor amount would multiply the factor | |||||
| by using PV of annuity table | |||||
| therefore 30000 will be multiply by annuity factor of 8% |
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Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash fl...
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net...
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash flows of $30,000 each year for the next 7 years. The machine has a salvage value of $10,000 at the end of its 7 year useful life. Johnson's cost of capital and discount rate is 8%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table? $30,000 $80,000 o oo $10,000 $210,000...
Altman Corporation is considering investing $75,000 in a new piece of machinery that will generate net...
Altman Corporation is considering investing $75,000 in a new piece of machinery that will generate net annual cash flows of $25,000 each year for the next 5 years. The machine has a salvage value of $8,000 at the end of its 5 year useful life. Altman's cost of capital and discount rate is 9%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table? $125,000 $25,000 ООО $8,000 $75,000
Silverberg Manufacturing is considering investing $90,000 in a new piece of machinery that will generate net annual cas...
Silverberg Manufacturing is considering investing $90,000 in a new piece of machinery that will generate net annual cash flows of $40,000 each year for the next 4 years. The machine has a salvage value of $15,000 at the end of its 4 year useful life. Silverberg's cost of capital and discount rate is 6%. Which of the following tables and criteria should we use to discount the net annual cash flow? PV of annuity table, n 1, i-6% PV of...
Silverberg Manufacturing is considering investing $90,000 in a new piece of machinery that will generate net...
Silverberg Manufacturing is considering investing $90,000 in a new piece of machinery that will generate net annual cash flows of $40,000 each year for the next 4 years. The machine has a salvage value of $15.000 at the end of its 4 year useful life. Silverberg's cost of capital and discount rate is 6%. Which of the following tables and criteria should we use to discount the salvage value of the equipment? OPV of annuity table, n=4, i=6% O PV...
Silverberg Company has just signed a capitalizable lease contract for equipment that requires rental payments of $...
Silverberg Company has just signed a capitalizable lease contract for equipment that requires rental payments of $12,000 each, to be paid at the end of each of the next 4 years. The company's discount rate is 10%. What is the amount used to capitalize the leased equipment (.e. the present value of the lease payments)? O $ 38,038.32 O $ 152,153.28 O $ 48,000.00 O $ 8,196.12 Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that...
Monterey Company is considering investing in two new vans that are expected to generate combined cash...
Monterey Company is considering investing in two new vans that are expected to generate combined cash inflows of $30,000 per year. The vans’ combined purchase price is $93,000. The expected life and salvage value of each are four years and $23,000, respectively. Monterey has an average cost of capital of 7 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required Calculate the net present value of the investment opportunity. (Round your intermediate calculations...
company is considering buying a new piece of machinery that costs $30,000 and has a value of $8,000 at the end of it...
company is considering buying a new piece of machinery that costs $30,000 and has a value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in ann venues. The internal rate of return (IRR) on this investment is between A 2%-3% salvage ual 2. : 11%-12%. C. 6%-7%. , D. 13%-14%. E. 4%-5%.
company is considering buying a new piece of machinery that costs $30,000 and has a value of $8,000 at the...
A company is considering buying a new piece of machinery that costs $30,000 and has a...
A company is considering buying a new piece of machinery that costs $30,000 and has a salvage value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in annual revenues. MARR = 8%. The internal rate of return (IRR) on this investment is between A. 2%-3%. B. 11%-12% C. 6%-7% D. 13%-14% E. 4%-5%
Monterey company is considering investing in two new vans that are expected to generate combined cash...
Monterey company is considering investing in two new vans that
are expected to generate combined cash inflows of $30,000 per year.
The vans combined purchase price is $93,000. The expected life and
salvage value of each or four years and $23,000, respectively.
Monterey has an average cost of capital of 7%.
a. calculate the net present value of the investment
opportunity.
b. indicate whether the investment opportunity is expected to
earn a return that is above or below the cost...
A company is considering buying a new piece of machinery that costs $30,000 and has a...
A company is considering buying a new piece of machinery that costs $30,000 and has a salvage value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in annual revenues. MARR = 8%. The internal rate of return (IRR) on this investment is between A. 2%-3%. B. 11%-12%. C. 6%-7%. D. 13%-14%. E. 4%-5%. Using the information in the previous question #5, if the company considering purchasing the machine uses a MARR of...
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash flows of $30,000 each year for the next 7 years. The machine has a salvage value of $10,000 at the end of its 7 year useful life. Johnson's cost of capital and discount rate is 8%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table? $30,000 $80,000 o oo $10,000 $210,000...
Altman Corporation is considering investing $75,000 in a new piece of machinery that will generate net annual cash flows of $25,000 each year for the next 5 years. The machine has a salvage value of $8,000 at the end of its 5 year useful life. Altman's cost of capital and discount rate is 9%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table? $125,000 $25,000 ООО $8,000 $75,000
Silverberg Manufacturing is considering investing $90,000 in a new piece of machinery that will generate net annual cash flows of $40,000 each year for the next 4 years. The machine has a salvage value of $15,000 at the end of its 4 year useful life. Silverberg's cost of capital and discount rate is 6%. Which of the following tables and criteria should we use to discount the net annual cash flow? PV of annuity table, n 1, i-6% PV of...
Silverberg Manufacturing is considering investing $90,000 in a new piece of machinery that will generate net annual cash flows of $40,000 each year for the next 4 years. The machine has a salvage value of $15.000 at the end of its 4 year useful life. Silverberg's cost of capital and discount rate is 6%. Which of the following tables and criteria should we use to discount the salvage value of the equipment? OPV of annuity table, n=4, i=6% O PV...
Silverberg Company has just signed a capitalizable lease contract for equipment that requires rental payments of $12,000 each, to be paid at the end of each of the next 4 years. The company's discount rate is 10%. What is the amount used to capitalize the leased equipment (.e. the present value of the lease payments)? O $ 38,038.32 O $ 152,153.28 O $ 48,000.00 O $ 8,196.12 Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that...
company is considering buying a new piece of machinery that costs $30,000 and has a value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in ann venues. The internal rate of return (IRR) on this investment is between A 2%-3% salvage ual 2. : 11%-12%. C. 6%-7%. , D. 13%-14%. E. 4%-5%.
company is considering buying a new piece of machinery that costs $30,000 and has a value of $8,000 at the...
A company is considering buying a new piece of machinery that costs $30,000 and has a salvage value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in annual revenues. MARR = 8%. The internal rate of return (IRR) on this investment is between A. 2%-3%. B. 11%-12% C. 6%-7% D. 13%-14% E. 4%-5%
Monterey company is considering investing in two new vans that
are expected to generate combined cash inflows of $30,000 per year.
The vans combined purchase price is $93,000. The expected life and
salvage value of each or four years and $23,000, respectively.
Monterey has an average cost of capital of 7%.
a. calculate the net present value of the investment
opportunity.
b. indicate whether the investment opportunity is expected to
earn a return that is above or below the cost...
A company is considering buying a new piece of machinery that costs $30,000 and has a salvage value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in annual revenues. MARR = 8%. The internal rate of return (IRR) on this investment is between A. 2%-3%. B. 11%-12%. C. 6%-7%. D. 13%-14%. E. 4%-5%. Using the information in the previous question #5, if the company considering purchasing the machine uses a MARR of...
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