Question
a nonprofit organization, estimates that it can save $ 26 comma 000 $26,000 a year in cash operating costs for the next 9 9 years
a nonprofit organization, estimates that it can save
$ 26 comma 000
$26,000 a year in cash operating costs for the next
9
9 years if it buys a? special-purpose eye-testing machine at a cost of
$ 125 comma 000
$125,000. No terminal disposal value is expected.
Metro Clinic's
MetroClinic's required rate of return is
10
10?%. Assume all cash flows occur at? year-end except for initial investment amounts.
Metro Clinic
MetroClinic uses? straight-line depreciation.
Calculate the following for the? special-purpose eye-testing? machine:
A. Net present value
b.Payback period
c.Internal rate of return
d.Accrual accounting rate of return based on net initial investment
e.Accrual accounting rate of return based on average investment
ar tol 1 Reference 6 of 7 (7 complete) HW Score: Present Value of Annuity of $1.00 in Arrears* Periods 2% 4% 6% 8% 10% 12% 14% 16% Period 1 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.862 18% 20% 22% 24% 26% 28% 0.847 30% 32% 40% Periods 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 Period 1 Period 2 1.942 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.424 1.392 1.361 1.331 1.224 Period 2 Period 3 2.884 2.775 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.923 1.868 1.816 1.766 1.589 Period 3 P Period 4 3.808 3.630 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.320 2.241 2.166 2.096 1.849 Period 4 Period 5 4.713 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.635 2.532 2.436 2.345 2.035 Period 5 is Period 6 5.601 5.242 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.472 6.002 5.582 5.206 4.868 4.564 4.288 4.039 Period 8 7.325 6.733 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.162 7.435 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.498 3.326 3.812 3.605 3.416 3.242 3.083 2.937 4.078 3.837 3.619 3.421 3.241 3.076 3.786 3.566 3.167 3.020 2.885 2.759 2.643 2.534 2.168 Period 6 2.802 2.677 2.263 Period 7 2.925 2.786 2.331 Period 8 3.366 3.184 3.019 2.868 2.379 Period 9 Period 10 8.983 Period 11 9.787 Period 12 10.575 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.465 3.269 3.092 2.930 2.414 Period 10 8.760 7.887 7.139 6.495 5.938 5.029 5.453 4.656 4.327 4.035 3.776 3.543 3.335 3.147 2.978 2.438 Period 11 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.606 3.387 3.190 3.013 2.456 Period 12 Period 13 11.348 9.986 8.853 7.904 7.103 6.424 5.842 5.342 Period 14 12.106 10.563 9.295 8.244 7.367 6.628 Period 15 12.849 11.118 9.712 Period 16 13.578 11.652 Period 17 14.292 12.166 10.106 Period 18 14.992 12.659 13.406 6.142 6.811 7.606 8.559 6.974 6.265 7.824 8.851 6.373 8.022 7.120 10.477 9.122 10.477 7.250 6.467 8.201 9.372 10.828 8.365 9.604 11.158 Period 19 15.678 13.134 9.818 Period 20 16.351 13.590 11.470 Period 21 17.011 14.029 11.764 10.017 Period 22 17.658 14.451 12.042 10.201 Period 23 18.292 14.857 12.303 10.371 8.985 12.550 10.529 Period 24 18.914 15.247 10.675 9.077 12.783 Period 25 19.523 15.622 9.161 13.003 10.810 Period 26 20.121 15.983 10.935 9.237 13.211 Period 27 20.707 16.330 Period 28 21.281 16.663 11.051 9.307 5.468 6.002 5.575 5.668 5.749 5.818 5.273 6.550 7.366 5.877 5.316 8.514 7.469 6.623 5.929 5.353 4.870 8.649 7.562 6.687 5.973 5.384 4.891 4.533 4.910 4.611 4.265 3.962 5.008 4.001 3.726 4.315 5.092 4.675 4.357 4.033 5.162 4.730 4.391 4.059 5.222 4.775 4.419 4.080 4.812 4.097 4.843 4.442 3.799 4.110 3.808 4.460 3.816 4.121 4.476 4.203 3.912 3.656 3.427 3.223 3.040 2.469 Period 13 3.695 3.459 3.249 3.061 2.478 Period 14 3.483 3.268 3.076 2.484 Period 15 3.751 3.503 3.283 3.088 2.489 Period 16 3.771 3.518 3.295 3.097 2.492 Period 17 3.786 3.529 3.304 3.104 2.494 Period 18 3:539 3.311 3.109 2.496 Period 19 3.546 3.316 3.113 2.497 Period 20 3.551 3.320 3.116 2.498 Period 21 8.772 7.645 6.743 6.011 5.410 4.909 4.130 4.488 3.822 3.556 3.323 3.118 2.498 Period 22 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 3.827 3.559 3.325 3.120 2.499 Period 23 7.784 6.835 6.073 5.451 4.937 4.507 4.143 3.831 3.831 3.562 3.327 3.121 2.499 Period 24 6.873 7.843 7.896 6.906 6.935 7.943 7.984 6.961 6.097 5.467 4.948 4.514 3.564 3.834 3.566 3.837 4.520 4.151 4.956 5.480 6.118 3.567 3.839 4.154 4.964 4.524 6.136 5.492 3.840 3.568 4.528 4.157 5.502 4.970 6.152 4.147 3.122 3.329 3.330 3.123 3.123 3.331 3.331 3.124 2.499 Period 25 2.500 Period 26 2.500 Period 27 2.500 Period 28 per in the Print Done MacBook Pro - X k Answer
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A Net Present Value NPV Cash flows Year 0 125000 initial investment Years 19 26000 annual savings Di...Get Instant Access to Expert-Tailored Solutions
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