Question
ABC Vending Machine Company is planning to expand its business by adding a new line of vending machines. The management team is considering expanding into
ABC Vending Machine Company is planning to expand its business by adding a new line of vending machines. The management team is considering expanding into either soda machines or snack machines. Following is the relevant financial data relating to the decision:
|
| Soda Machines | Snack Machines |
| Investment | $ 37,500 | $ 25,000 |
| Useful life (years) | 5 | 10 |
| Estimated annual net cash inflows for useful life | $ 15,000 | $ 9,000 |
| Residual value | $ 15,000 | $ 5,000 |
| Depreciation method | straight-line | straight-line |
| Required rate of return | 8% | 12% |
What is the net present value for the soda machines?I GOT THE Answer : $ 32, 610 = Let me know the solution.
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Stand Up To The Irs How To Handle Audit Tax Bill And Tax Count
Authors: Frederick W. Daily, Robin Leonard
1st Edition
0873373375, 978-0873373371
