Check my work 2 Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $499,000 cost with an expected four-year life and a $10,000 salvage value. Additional annual information for this new product line follows. (PV of $1, FV of S1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) 2 points Sales of new product $ 1,980,000 Expenses Materials, labor, and overhead (except depreciation) 1,504,000 Depreciation Machinery 122,250 Selling, general, and administrative expenses 158,000 Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 8% Budk Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute net present value for this machine using a discount rate of 8%. (Do not round intermediate calculations. Negative amounts should be entered with a minus sign. Round your present value factor to 4 decimals and final answers to the nearest whole dallar.) Net Cash x Present Value Present Value of Flows at 8% Net Cash Flows Years 1-4 S 318,000 X $ 2,544,000 Salvage value, year 4 0 Total = Initial investment = Net present value = = Check my work N Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $499,000 cost with an expected four-year life and a $10,000 salvage value. Additional annual information for this new product line follows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) 2 points Sales of new product $ 1,990,000 Expenses Materials, labor, and overhead (except depreciation) 1,504,000 Depreciation Machinery 122,250 Selling, general, and administrative expenses 158,000 Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 8%. eBook Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Numerator: 1 Payback Period Denominator: Annual net cash flow Payback Period 0
