Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company is considering a $195,000 investment in machinery with the following net cash flows. The company requires a 10% return on its Investments. (PV

image text in transcribed
image text in transcribed
A company is considering a $195,000 investment in machinery with the following net cash flows. The company requires a 10% return on its Investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Bet Cash Plow $12,000 $33,000 $64,000 $49,000 $131,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar) Year Net Cash Flows Present Value Factor Prosent Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Not present value $ $ 0 $ Required B A company is considering a $195,000 Investment in machinery with the following net cash flows. The company requires a 10% return on its Investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow $12,000 $33,000 $64,000 $49,000 $131,000 (a) Compute the net present value of this investment (b) Should the machinery be purchased? Complete this question by entering your answers in the tabs below. Required A Required B Should the machinery be purchased? Should the machinery be purchased?

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

Step: 3

blur-text-image

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

Cengage Learnings Online General Ledger For Heintz/parrys College Accounting, 2, 2 Terms (12 Months)

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305669991, 9781305669994

More Books

Students also viewed these Accounting questions

Question

d ) f ( z ) = ( z ) 2 ) e ^ * ex

Answered: 1 week ago

Question

=+8. Be sure you considered consumer benefits.

Answered: 1 week ago

Question

=+4. Consider competitors' campaigns. How could yours stand out?

Answered: 1 week ago

Question

=+5. Review the six categories of 50 strategies.

Answered: 1 week ago