1. Ramirez Co. is considering the purchase of a new machine ro replace the one currently in use. The old machine has a remaining life of 5 years with an $18,000 salvage. Annual depreciation on the old machine is $46,000. The new machine has a purchase price of $820,000, an estimated life of 5 years and an expected salvage value of $30,000. The initial investment required for the new machine is $640,000. Operating cost savings of $ 248,000 will be realized if the new machine is installed. The tax rate is 30%. The firm has an 8% cost of capital and uses straight line depreciation. Required: (1) Calculate the change in annual cash inflows associated with the purchase of the new machine. (2) Calculate the net present value associated with the purchase of the new machine. PES 3.1250 3:1250 3.3250 1 41666 68 COM 1966 64196 6.4605 OLICE 3.5714 1914 55712 35700 F OG 1901 4 BETE re BRIL cort 29091 99140 9800 099 55523 1562 CHO LE SECO CEITO SERTI SETE 3045 -0.025 3.490 13 ES: eers PNETE ME TIE CIES NEPIE 4.1899 41616 MA SES PO LINDI two NILDI WW 66118 6.6166 12.00 31265 13.00 13609 13.017 1297 247200 TI 2000 BHT) IN ON HERE n. saure 15:09 15. 1 NSIE 23.119 9.6412 PI ENCER MEILE EMER 35 11.4545 WE RE $$ ter RVS 3.549 3.5662 70002 LI Lisa LIM PISS Wess LHS GEMS 2015 Roms 06 MKS ure 31240 3.1333 3122 1959 GOSS SANS SIIS 41656 La LIMA SESSI INI GUST em 9595 E NOIR 11 HSP OLI urt LETTE 2014 54919 11.10 er HONE 106L CATE WW Tere! HIS ME PIE WS CITI PICH MATE ZE 41501 1. 660 HOP 143 13. R. 3.1220 31210 UN ws 01 VIDT 60H HE NE 15 M TE CHE MO 3.18 3.591 3.590 607 60102 LATTE ITS VERS 5.00 10 1.400 93039 INI ASI 6 &29 SSG CH MICE MEY GRO SEE 27 7.6146 2560 SME 67 POSTI PI WHE II IND POLIE WY WH MISS LEI IGGS CRY men 16 uses FOR 20 GOS 40067 65096 BM wees ES KERS CINCS Ireny POSE NN RIES tre GO 9 POVE ROL WETE WIEDE SYST WEST MAS LUIS NOST MOOTTE LIST 13.1999 1024 COM ME ME POKER RELI 3316 5.7930 52228 5.163 3109 3.00 3.6802 de Par How URL TENTI OS WWE INESE KIH PS SRT WH UH 40591 con 5.9541 WICH SO RICO 100TM 19.95 17 16 re 2.4166 WWW WICH 0610 1. ES RES TA 8.919 MET 51 H II wil NING NEX IN 11.10 3014 3.60 5.0801 29736 CSP TY WS IVES MOET LES ST24 3.1 HD 010 1909 HITS SRY ws M619 GPS us 15 14 15 SUS CHES RAIS es ERG MES LED FORT ENTE Port CELOS ... 19:55 STESE DE LA 8 MEG PIT ST 4.9205 4.7953 46 INEN us W PROCE US LE CMDL SUE MOONS BALU !!!!! PINIO TINI es IS MONT IREN CRON 17 9.3126 11 BE 11 ILE NES 10 OPS CHES 1.IM 47 IN RC They LICE ' IDIS 1 WSP 3.10 3. 3.01 6210 1.990 OG DE BUS MS NOVE 1669 US 4.6065 29504 MAI 28775 2.590 CHEL 69 FO 1 ME ME HITE ITE METE 307 2910 2. YN PEP NU 4021 ME HUSS M 9.46 LM P!! BOG ISLOS US INS SAS U11 POTS 41114 3.000 NO 3.600 SEES 1 47136 2510 3.6018 ELFE Sot 2N 2.48 SON 29137 3511 GANTS 10 2.2006 25 23 SIRET ELETS 190E CKIE WAST sono ENCES ENCE SPEE ht IWD ME TATA DOT ONE HOTI HNO ESSEZ CERET Sty! WED MIET UT NI MI SINO FELT MET MISED MINT en KY OINT MOGI 10000 UT MIT MB 1.215 01 SERCE NOST LAMA REST WHO LES 09346 72 om VO 67336 re OMI 13 LP NE 2 LET M 12 M Title 2 Prat Valee dan Annuity of Il per Period for Perlock Table A continued) L/L. IT 11 HT 010 === 1 MR.ir 11 Table A Present Value Ol Due at the end of a Period p
