Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brief Exercise 16-4 Ayayal Corporation is considering the purchase of a new bottling machine. The machine would cost $183,390 and has an estimated useful le

image text in transcribed
Brief Exercise 16-4 Ayayal Corporation is considering the purchase of a new bottling machine. The machine would cost $183,390 and has an estimated useful le of years with zero salvage Value Management estimates that the new bottling machine will provide net annual cash flows of $30,000. Management so believes that the new botting machine will save the company money because it is spected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of in Click here to view Py_table Calculate the net present value. (If the net present value is negative, use either a negative sin preceding the number .. 45 or parentheses (45). For cawlation purposes, se decima places as displayed in the factor table provided. Round present value answer to decimal places,.. 125.) Net present value $ How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Hound answer to decimal places, s. 17.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions