{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T08:06:22-04:00", "answer_date": "2024-05-26 08:06:22", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1728759", "url": "\/study-help\/questions\/cash-payback-period-net-present-value-analysis-and-qualitative-considerations-1728759", "question_creation_date_js": "2024-05-26T08:06:22-04:00", "question_creation_date": "May 26, 2024 08:06 AM", "meta_title": "[Solved] Cash Payback Period, Net Present Value An | SolutionInn", "meta_description": "Answer of - Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electron | SolutionInn", "meta_keywords": "cash,payback,period,net,present,value,analysis,qualitative,considerations,plant,manager,shenzhen", "question_title_h1": " Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electronics Company is considering the purchase of new automated", "question_title": " Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The", "question_title_for_js_snippet": "Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment The new equipment will cost $335,000 The manager believes that the new investment will result in direct labor savings of $67,000 per year for 10 years Present Value of an Annuity of $1 at Compound Interest Year 6 10 12 15 20 1 0 943 0 909 0 893 0 870 0 833 2 1 833 1 736 1 690 1 626 1 528 3 2 673 2 487 2 402 2 283 2 106 4 3 465 3 170 3 037 2 855 2 589 5 4 212 3 791 3 605 3 353 2 991 6 4 917 4 355 4 111 3 785 3 326 7 5 582 4 8681 4 564 4 160 3 605 8 6 210 5 335 4 968 4 487 3 837 9 6 802 5 759 5 328 4 772 4 031 10 7 360 6 145 5 650 5 019 4 1921 a What is the payback period on this project years b What is the net present value, assuming a 10 rate of return Use the table provided above Round to the nearest whole dollar Net present value c What else should the manager consider in the analysis Depreciation Taxes and maintenance costs Depreciation and Taxes Maintenance costs Previous Next", "question_description": "\"image", "transcribed_text": "Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $335,000. The manager believes that the new investment will result in direct labor savings of $67,000 per year for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.8681 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.1921 a. What is the payback period on this project? years b. What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar. Net present value c. What else should the manager consider in the analysis? Depreciation. Taxes and maintenance costs. Depreciation and Taxes. Maintenance costs. . Previous Next", "related_book": { "title": "Financial accounting", "isbn": "9780135114933, 136108865, 978-0136108863", "edition": "8th Edition", "authors": "Walter T. Harrison, Charles T. Horngren, William Bill Thomas", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/196.jpg", "uri": "\/textbooks\/financial-accounting-8th-edition-196", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8388962546", "uri": "\/textbooks\/the-business-legal-overview-get-an-overview-of-the-complexities-involved-1st-edition-979-8388962546-100779", "name": "The Business Legal Overview Get An Overview Of The Complexities Involved", "edition": "1st Edition" }, "question_posted": "2024-05-26 08:06:22", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/adel-runs-a-construction-equipment-rental-company-renting-out-loaders-240513", "description": "Adel runs a construction equipment rental company, renting out loaders, generators, lifts and similar equipment on short term rentals. 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