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Current Attempt in Progress Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Machine A Machine B
Current Attempt in Progress Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Machine A Machine B Investment $107,500 $154,000 Estimated life 8 years 8 years Estimated annual cash inflows $26,500 $39,000 Estimated annual cash outflows $5,900 $9,500 Salvage value for each machine is estimated to be zero. Click here to view PV table. Calculate the net present value of each project assuming a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) Net Present Value Estimated annual cash inflows $26,500 $39,000 Estimated annual cash outflows $5,900 $9,500 Salvage value for each machine is estimated to be zero. Click here to view PV table. Calculate the net present value of each project assuming a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) Net Present Value $ Machine A $ Machine B Which project should the company choose
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