Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that
Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants will cost $239,600. In addition, Austin estimates that the new machine will increase the company's annual net cash flows by $36,900. The machine will have a 12-year useful life and no salvage value. TABLE 4 Present Value of an Annuity of 1 (n) Payments 1 234N 5 HO69L9 10 11 12 13 14 15 16 17 18 19 20 6% 7% 8% 11% 12% 15% .90090 .89286 .86957 2.67301 3.46511 4.21236 9% 10% .94340 0.93458 .92593 .91743 .90909 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.10020 3.99271 3.88965 3.35216 3.79079 3.69590 3.60478 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 3.78448 4.35526 4.23054 4.11141 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 9.89864 9.29498 8.24424 8.74547 7.78615 7.36669 6.98187 6.62817 5.72448 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 10.05909 9.37189 10.82760 8.75563 8.20141 7.70162 7.24967 6.12797 10.33560 9.60360 8.95012 8.36492 7.83929 7.36578 11.15812 6.19823 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 8.30641 8.86325 9.39357 4% 5% .96154 .95238 1.88609 1.85941 2.77509 2.72325 3.62990 3.54595 4.45182 4.32948 8.76048 9.38507 9.98565 10.56312 11.11839 11.65230 10.83777 12.16567 11.27407 11.68959 12.65930 13.13394 12.08532 13.59033 12.46221
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started