Now | 1 | 2 | 3 | 4 | |
Manufacturing Equipment | -310000 | ||||
Advertising | -93000 | ||||
Annual Profits | 156000 | 156000 | 104000 | 104000 | |
Total cash flows | -403000 | 156000 | 156000 | 104000 | 104000 |
X PV factor 6% | 1 | 0.943 | 0.890 | 0.840 | 0.792 |
Present value of cash flows | -403000 | 147108 | 138840 | 87360 | 82368 |
Net Present value | 52676 |
X Company is planning to launch a new product. A market research study, costing $150,000, was...
X Company is planning to launch a new product. A market research study, costing $160,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $170,000 in each of the first two years and $117,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $76,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $161,000 in each of the first two years and $104,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $90,000. New manufacturing equipment will have to be purchased for...
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $61,000 per year; operating costs with the new machine are expected to be $46,000 per year. The new machine will cost $69,000 and will last for five years, at which time it can be sold for $1,500. The current machine will also last for five more years but will not be worth anything at that time. It cost...
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $65,000 per year; operating costs with the new machine are expected to be $47,000 per year. The new machine will cost $70,000 and will last for five years, at which time it can be sold for $1,500. The current machine will also last for five more years but will not be worth anything at that time. It cost...
Apologies that the sizes of the pictures are so odd.
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $64,000 per year; operating costs with the new machine are expected to be $45,000 per year. The new machine will cost $71,000 and will last for six years, at which time it can be sold for $1,000. The current machine will also last for six more years but...
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 $59,000. 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 $52,000, and Machine B costs $55,000.
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...
Period 3% 4% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 5% 0.952 0.907 0.864 0.823 0.962 0.925 0.889 0.855 0.822 0.790 10.760 0.731 99 Present Value of $1.00 6% 7% 8% 0.943 0.890 0.840 0.792 0.917 0.842 0.772 0.784 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.582 0.747 0.705 0.665 0.746 0.926 0.857 0.794 0.735 0.681 0.630 | 0.583 0.540 11% 0.901 0.812 0.731 0.659 0.593 10.535 0.482 0.434 10.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 12%...
table is in a different pic
present value of a 10. AO S-1,288 BO S-1.610 CO 8-2,012 D - 10 18 pt X Company must replace one of its current machines with either Maciine A or Machine B. The seful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B S-6,000 5.7.000 -4,000 -8,000 -3.000 -8,000 -3,000 3.000 -2,000 -2,000...
plz help!
present value of launching to 10. AO S-1,288 BO S-1,610 CO S-2,012 DO 8-2,516 D 8 pt X Company must replace one of its current machines with either Machine A or Machine B. The useful life of by machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B Year 5-6,000 $-7,000 -8,000 -4,000 -8,000 -3,000 -8,000 -3,000 -3,000 -5,000 -2,000 -6,000...