Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and no salvage value. The mach

image text in transcribedimage text in transcribedimage text in transcribed

Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and no salvage value. The mach operating costs by $17,000 per year. The company's required rate of return is 18%. What is the net present value of this investment? Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using table. O Multiple Choice $3,159 $3,896 $3,796 $3,359 Per Va () Periss 16% 1594 0.769 07756 4 5 6 DARY 00400516 084 0821 07920761 075 0.70 0822074 0242 0713 610 079007705 0.68) 06660610006 N P 10 0.547 0.511 0.507 0.467 0.400 0424 0136 11 anso 0429 12 ORS 0.601 0204 24 0377 0.303 15 16 04420388 0417 0 362 0.394 0.340 0.299 0263 0315 0.339 17 18 0313 0494 0.296 19 20 21 0475 0.456 0439 22 23 4 0.390 0310 0.375 0087 0.073 0.093 0.077 0.064 0481 0.458 0436 0371 0317 0270 0231 0198 0.170 0.146. 0416 0.350 0250 0312 0.180 0.153 0130 0.396 10.331 0.277 0.232 0194 0.164 0138 0.116 0.377 0312 0.258 0315 0.178. 0.149 0.124 0.104 0.359 0294 0242 0.199 0164 0.135 0.112 0422 0.342 0.278 0.226 0.184 0150 0123 0.101 0406 0.326 0.262 0211 0170 0138 0112 0.091 0.247 0197 0.158 0126 0.102 0.082 0.291 0.233 0.184 0.146 0.116 0.092 0.074 0.361 0.281 0.220 0.172 0135 0.106 0.084 0.066 0347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.054 0.321 0.243 0.185 0.141 0.107 10.082 0.063 0.048 0.308 0231 0174 0.131 0.099 0.075 0.057 0.044 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.056 0181 8100 0.375 0.339 0292 0252 0718 0.188 0160 0.140 0.141 0.123 0125 0.108 0.111 0.093 0.098 0.083 072 0731 071 0712 0491 0675 0410 ONE 074 0741 OD KOMED 706 AGE DAY CAL Only 0616 0613 0.592 0.572 0442 0444 0316 0499 042 040 A 100 04 0.5910363 0.343 0.319 049 047 0456 0437 0419 6402 0386 OSSTOR TOALL ALOX 0364 0515 3070480 007006506230383 0,416 071 067 0457 04870340 0482 0452 0425 0.400 0376 0.334 0.333 0314 0296 0979 0.26 0.249 030919 0434 0404 07030645 0192 0.344 0.500 0376 0351 0127 0.05 0285 0766 0349 0.93) 071 0204 0191 07961 0.391 06760614 0338 0.30 0.463 0.422 0361 0.33Y Mos 0394 0261 0243 0.225 0.209 0194 01000167 01554 M 0352 0322 0485 0.527 0475 0295 0.270 0347 0227 0208 0.388 0350 0317 0247 02613 DAST 0.126 OSOA DAST 0497 0.444 0.397 336 0.217 0.215 0195 0178 0.167 0.148 10.135 0.123 0.112010 0319 0286 0237 0211 03300469 0.201 0.187 0164 057 0.137 0.124 0.112 0.1026092 608 0126 0290 0238 0.229 0182 0163 0145 0.130 0116 0.104 0.093 0.084 0.075 0.068 0232 0205 6141 0125 6.111 0.009 0.08 0.078 069 0.002 0.055 0.209 0183 0.123 0.108 0.095 0.054 0.074 0057 0.045 0.031 0163 0.107 0,093 0.071 CONE 0.069 0000 0.052 0.045 0.019 0.014 0.059 6051 0.044 0.038 0.032 0.02 0.024 0.021 0018 0070 0.060 6051 0011 0.043 0.027 0.021 0.020 0.017 0.014 0.051 0.061 0.043 0.037 0.026 0.031 0.022 0.019 0.016 0014 0.012 0.051 0,044 0.017 0.031 0026 0.022 0.018 0.015 0.013 0.011 0.009 0.081 0.068 0.046 0.038 0.032 0.026 0.022 0.018 0015 0.013 0.011 0.009 0.007 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.015 0018 0012 0010 0.009 0.007 0.006 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0.0101 0.008 0.007 0.006 0.005 0.059 0,047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006) 0.005 0.004 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.017 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 6.002 0.002 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.011 0.00% 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.191 0.176 0.162 0149 0.060055 0.049 0044 0.065 0062 0.054 6047 0042 0.036 6.040 0.055 0.032 0.028 030 0.026 0.025 9.06 Wear Q Search c 42 5763 5 T 71002 65136.247 10 TOH 2008 020 2020 204XS 16103346 46 47 3312 AND ON 1912 4767 167364636710 113722230 7024 6710 640 6148 5000 5650 149 7130968056405 X 2.444 240 3.170.102 3037 3001 1999 3200 300 4/12 4304 4423 420 40 3054 37726 3419 3 332 3332 4946 43977 426 36309 549 534 5079486 12 7.536 7101 6814 6492 5918 13 ONE 9.30 ASHASH 7004 7.487 7103 14 0745 8744 786 7.363 15 111.115 10 30 97129104 8550 8001 2606 LOSE TO BAR TOYS 9447 RSTE 17 8.344 IN 12.659 11 690 10 828 10 0599412 8.756 9702 2004 1379 549 120 750 424 0.982 6.628 191 6.122 7350 6,840 19 HANDA 12 01115810.3169.604 20 21 950 9129 9292 8365 7819 22 23 24 25 6 7 4990 4219 405916 6467 6128 5.81 5.534 5.273 5.033 4419 4243 1080 6.550 6.198 5.577 5.584 5316 5.070 1843 4635 AAA2 4363 4.097 13.390 12:46 11420 10 194 UNIA 314 7.961 7025 6621 6.259 5.939 5.638 5353 5.101 4870 4.657 44604279 4.110 3.954) 14029 12.421 11704 10.8161001 8.649 075 7.562 7.102 6.687 6312 5.973 5.665 5.384 5.127 4891 4675 4476 4292 4.121 3963 14431 13163/12042/11.061 10.201 9442 8.7728.176 7.645 7.170 6.743 6359 6.011 5.696 5410 5.149 4909 4.690 4AN 4.302 4.130 3.970 14.857 11.489 12.303 11.272 10.371 9.580 8,883 8.266 7,718 7.230 6792 6.399 6044 5.723 5.432 5.167 4925 4.703 4499 4311 4137 3976 15.247/11.799 12.550 11.469 10.529 9,707 8.985 8.148 7.784 7.283 6.835 6,434 6073 5.746 5.451 5.182 4.937 4713 4507 4318 4.1433981 15622 14.094 12.783 1654 10.675 9821 9.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.1473985 15.983 14.375 13.003 11.826 10.510 9929 9.161 8.488 7896 7.372 6.906 6.491 6.118 5.783 5,480 5.206 4.956 4.728 4520 4.32% 4.151 1988 16.330 14 643 13.211 11.987 10.935 10 027 9.237 8.5-48 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4,154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4.534 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.344 5343 5.50 5.342 5.118 6.002 5.724 5.408 6462 6143 5847 3.575 6604 5.668 5.008 5.229 803 5.324 5092 4.876 4675 AND TO 415340019 5405 5302 4.058 6729 6395 6047 5,749 5.475 4813 3.928 3942 4 337 4.159 3.994 4.339 4.160 3.995 4.347 4.166 3.999 Q Search 3 clear

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

Financial accounting

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

9th edition

978-0132751216, 132751127, 132751216, 978-0132751124

More Books

Students also viewed these Accounting questions

Question

1. Avoid reading cumulative folders early in the year.

Answered: 1 week ago

Question

What are the five steps in the risk management process?

Answered: 1 week ago