Homework Answers
Please find below the solution.. let me know if you need any clarification..
Correct answer is option : PV of single sum table, n = 4, i = 6%
This is because we need to find PVIF for 6% at year 4 therefore answer is the above one.
Add Answer to:
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 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...
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?
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...
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
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...
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%
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...
Tadashi Designs is considering investing in a piece of land that it believes it can sell...
Tadashi Designs is considering investing in a piece of land that it believes it can sell in 5 years for $175,000. The relevant interest rate is 12%, with monthly compounding. What should Tadashi pay for this land today? Single Sum or Annuity? Future value, Present value, N or interest?
The Baker Company is considering investing in a wind turbine to generate its own power. Any...
The Baker Company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the local utility company. Between cost savings and new revenues, the company expects to generate $838,500 per year in net cash inflows from the turbine. The turbine would cost $4.3 million and is expected to have a 20-year useful life with no residual value. Calculate the NPV assuming the company uses a 6% hurdle rate. (Round your...
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 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...
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
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...
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%
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...
Tadashi Designs is considering investing in a piece of land that it believes it can sell in 5 years for $175,000. The relevant interest rate is 12%, with monthly compounding. What should Tadashi pay for this land today? Single Sum or Annuity? Future value, Present value, N or interest?
The Baker Company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the local utility company. Between cost savings and new revenues, the company expects to generate $838,500 per year in net cash inflows from the turbine. The turbine would cost $4.3 million and is expected to have a 20-year useful life with no residual value. Calculate the NPV assuming the company uses a 6% hurdle rate. (Round your...
Most questions answered within 3 hours.
-
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 4 seconds ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 8 minutes ago -
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 5 minutes ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 6 minutes ago -
Calculate the expected value, the variance, and the standard
deviation of the given random variable X....
asked 51 minutes ago -
A hospital performs 100 surgeries per week. The probability that
complications after surgery occur is 10%....
asked 1 hour ago -
1 point) Given the significance level α=0.01 find the following:
(a) left-tailed z value z= (b)...
asked 49 minutes ago -
Assuming you are the head of the software development unit at
Cyber.Soft, explain and justify why...
asked 15 minutes ago -
Magnesium and nitrogen react in a combination reaction to
produce magnesium nitride. 3 Mg + N2...
asked 23 minutes ago -
Two electrons are initially at rest separated by a distance of
2nm. At time t=0, they...
asked 21 minutes ago -
A martial artist is practicing breaking 5 boards. He is able to
break aboard with probability...
asked 28 minutes ago -
The rate constant of a first-order reaction is 2.95 × 10−4 s−1
at 350.° C. If...
asked 31 minutes ago