(Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Weiler Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Weiler expects the following net cash inflows from the two options: E: (Click the icon to view the net cash flows.) Weiler uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. Data Table Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish). i Net Cash Outflows Net Cash Inflows Refurbish Current Machine Purchase New Machine Year Amount Invested Year Annual Accumulated - X More Info 0 $ 1,300,000 Year 1 $ 20,000 $ 860,000 Year 2 1 610,000 480,000 Year 3 2 The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,300,000. If refurbished, Weiler expects the machine to last another eight years and then have no residual value. Option 2 is to replace the machine at a cost of $1,900,000. A new machine would last 10 years and have no residual value. Year 4 350,000 630,000 500,000 370,000 240,000 240.000 240,000 220,000 5 Year 5 Year 6 Year 7 Year 8 220,000 220,000 6 Print Done 7 220,000 8 Year 9 240,000 240.000 240,000 Year 10 (Round your answer to one decimal place.) $ 2,340,000 $ Total 3,800,000 Choose from any list or enter any number in the input fields and then continue to the next question. ? 0 Weiler Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Weiler expects the following net cash inflows from the two options: 5 Click the icon to view the net cash flows.) Weiler uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements The payback for Option 1 (refurbish current machine) is years Data Table Now complete the payback schedule for Option 2 (purchase). Net Cash Outflows Net Cash Inflows Year Year Amount Invested Annual _ x Accumulated More Info 0 1.900.000 Year 1 Refurbish Current Purchase New Machine Machine $ 20,000 $ 860,000 610,000 630,000 480,000 500,000 Year 2 1 Year 3 The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,300,000. If refurbished, Weiler expects the machine to last another eight years and then have no residual value. Option 2 is to replace the machine at a cost of $1,900,000. A new machine would last 10 years and have no residual value. Year 4 350,000 370,000 Year 5 220,000 Year 6 Year 7 220,000 220,000 220,000 6 Print Done 240,000 240,000 240,000 240,000 240,000 240,000 Year 8 Year 9 8 9 Year 10 $ 2,340,000 $ 3,800,000 10 Total Choose from any list or enter any number in the input fields and then continue to the next question. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Weiler Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Weiler expects the following net cash inflows from the two options: E: (Click the icon to view the net cash flows.) Weiler uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. Data Table Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish). i Net Cash Outflows Net Cash Inflows Refurbish Current Machine Purchase New Machine Year Amount Invested Year Annual Accumulated - X More Info 0 $ 1,300,000 Year 1 $ 20,000 $ 860,000 Year 2 1 610,000 480,000 Year 3 2 The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,300,000. If refurbished, Weiler expects the machine to last another eight years and then have no residual value. Option 2 is to replace the machine at a cost of $1,900,000. A new machine would last 10 years and have no residual value. Year 4 350,000 630,000 500,000 370,000 240,000 240.000 240,000 220,000 5 Year 5 Year 6 Year 7 Year 8 220,000 220,000 6 Print Done 7 220,000 8 Year 9 240,000 240.000 240,000 Year 10 (Round your answer to one decimal place.) $ 2,340,000 $ Total 3,800,000 Choose from any list or enter any number in the input fields and then continue to the next question. ? 0 Weiler Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Weiler expects the following net cash inflows from the two options: 5 Click the icon to view the net cash flows.) Weiler uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements The payback for Option 1 (refurbish current machine) is years Data Table Now complete the payback schedule for Option 2 (purchase). Net Cash Outflows Net Cash Inflows Year Year Amount Invested Annual _ x Accumulated More Info 0 1.900.000 Year 1 Refurbish Current Purchase New Machine Machine $ 20,000 $ 860,000 610,000 630,000 480,000 500,000 Year 2 1 Year 3 The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,300,000. If refurbished, Weiler expects the machine to last another eight years and then have no residual value. Option 2 is to replace the machine at a cost of $1,900,000. A new machine would last 10 years and have no residual value. Year 4 350,000 370,000 Year 5 220,000 Year 6 Year 7 220,000 220,000 220,000 6 Print Done 240,000 240,000 240,000 240,000 240,000 240,000 Year 8 Year 9 8 9 Year 10 $ 2,340,000 $ 3,800,000 10 Total Choose from any list or enter any number in the input fields and then continue to the next
