Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Assume a piece of machinery costs $380,000 and would last for 8 years. At the end of 8 years, the salvage value would be

1
image text in transcribed
image text in transcribed
Assume a piece of machinery costs $380,000 and would last for 8 years. At the end of 8 years, the salvage value would be $96,500. Annual cost savings for the machinery would be $73,000. Assume a minimum pretax return of 15% is required for all machinery purchases. Compute the NPV and IRR for the machinery (ignore income taxes.) Provide the amounts you input in Excel and your calculated net present value (if a variable is not used in the calculation, Input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to the nearest dollar and use a minus sign for negative numbers Excel Input Rate Nper PMT PV FV Net Present Value (NPV) Required: Provide the amounts you input in Excel and your calculated internal rate of retur (If a variable is not used in the calculation, input a zero (o). Omit the "$" and "" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers Excel Input: Net Present Value (NPV) Required: Provide the amounts you input in Excel and your calculated internal rate of return (If a variable is not used in the calculation, input a zero (O). Omit the "s" and way" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers. Excel input: Rate Nper PMT $ PV $ FV Internal Rate of Return (RR)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Managers

Authors: Eric Noreen, Peter Brewer, Ray Garrison

6th Edition

1264100590, 9781264100590

More Books

Students also viewed these Accounting questions

Question

What are examples of non-assurance and consulting services?

Answered: 1 week ago

Question

1. What does this mean for me?

Answered: 1 week ago