{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T01:44:37-04:00", "answer_date": "2024-06-29 01:44:37", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4441964", "url": "\/study-help\/questions\/answer-the-question-jensen-company-produces-cars-this-company-is-4441964", "question_creation_date_js": "2024-06-29T01:44:37-04:00", "question_creation_date": "Jun 29, 2024 01:44 AM", "meta_title": "[Solved] answer the question Jensen Company produc | SolutionInn", "meta_description": "Answer of - answer the question Jensen Company produces cars. This company is required by law to buy a machine to recycle waste oi | SolutionInn", "meta_keywords": "answer,question,jensen,company,produces,cars,required,law,buy,machine,recycle,waste", "question_title_h1": "answer the question Jensen Company produces cars. This company is required by law to buy a machine to recycle waste oil. This project requires an", "question_title": "answer the question Jensen Company produces cars. This company is required by", "question_title_for_js_snippet": "answer the question Jensen Company produces cars This company is required by law to buy a machine to recycle waste oil This project requires an investment of $450,000 The project is expected to produce recycled oil and generate cash flows of $125,000 per year for five years The cash flows would be received at the end of each year ( The asset is considered 5 year property for depreciation purposes with zero salvage value The machine would be disposed of on the first day of the fourth year, at which time it would have $110,000 salvage value Assume the required rate of return is 8 percent and the income tax rate is 40 percent Required a Determine the net present value of the asset ( Round to the nearest dollar ) ( 10 marks) b State your recommendation should Jensen buy the machine Explain (1 mark) year discounted factor 8 0 926 2 0 857 3 0 794 4 10 735 5 0 681 6 0 630", "question_description": "

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\"image<\/div><\/div><\/div> Jensen Company produces cars. This company is required by law to buy a machine to recycle waste oil. This project requires an investment of $450,000. The project is expected to produce recycled oil and generate cash flows of $125,000 per year for five years. The cash flows would be received at the end of each year. (? The asset is considered 5-year property for depreciation purposes with zero salvage value. The machine would be disposed of on the first day of the fourth year, at which time it would have $110,000 salvage value. Assume the required rate of return is 8 percent and the income tax rate is 40 percent. Required : a. Determine the net present value of the asset. ( Round to the nearest dollar. ) ( 10 marks) b. State your recommendation should Jensen buy the machine? Explain (1 mark) year discounted factor 8% 0.926 2 0.857 3 0.794 4 10.735 5 0.681 6 0.630", "transcribed_text": "", "related_book": { "title": "Cost Management Measuring Monitoring And Motivating Performance", "isbn": "1118168879, 9781118168875", "edition": "2nd Canadian Edition", "authors": "Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/635f99b5717e0_1157.jpg", "uri": "\/textbooks\/cost-management-measuring-monitoring-and-motivating-performance-2nd-canadian-edition-1157", "see_more_uri": "" }, "free_related_book": { "isbn": "1567495710", "uri": "\/textbooks\/act-mathematics-improving-college-admission-test-scores-1st-edition-9781567495713", "name": "Act Mathematics Improving College Admission Test Scores", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:44:37", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-figure-shown-is-formed-of-0.075-in.-diameter-aluminum-wire.-knowing-35663", "description": "The figure shown is formed of 0.075-in.-diameter aluminum wire. 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Let X be the number of people who received financial aid in a random sample of size 100....", "stars": 3 }, { "url": "\/study-help\/questions\/word-problem-1718-algo-lu-171-2-lena-horn-bought-1002174", "description": "Word Problem 17-18 (Algo) [LU 17-1 (2)] Lena Horn bought a Toyota Tundra on January 1 for $26,000 with an estimated life of 4 years. The residual value of the truck is $5,200. 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