Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cury Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $930,000 Projected

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cury Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $930,000 Projected net cash inflows are as follows: Click the icon to view the projected net cash liflows. (Click the icon to view Present Value of 51 table.) (Click the icon to view Present Value of Ordinary Annuity of 51 table) Read the requirements Requirement 1. Compute this project's NPV using Cury's 14% hurdle rate: Should Cury invest in the equipment? Use the following table to calculate the not present value of the project (Enter any factor amounts to three decimal places, XXXX Use parentheses or a minus sign for a negative not present value) Not Cash PV Factor Years Inflow 14%) Present Value Year 1 Present value of each year's Inflow: (n-1) Year 2 Present value of each year's inflow. (n-2) Year 3 Present value of each year's inflow: (-3) Year 4 Present value of each year's inflow: in 4) Enter any number in the edit hields and then click Check Answer PORE Cury Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year lite and will cost $930,000 Projected net cash inflows are as follows (Click the icon to view the projected net cash inflows) (Click the icon to view Present Value of 51 table) (Click the icon to view Present Value of Ordinary Annulty of S1 table) Read the regulaments Tear Present Value of each years now in 1 Year 2 Present value of each year's inflow. In - 2) Year 3 Present value of each year's Inflow: (n-3) Year 4 Present value of each year's inflow: In-4) Year 5 Present value of each year's inflow, in5) Year 6 Present value of each year's Inflow: (0-6) Total PV of cash inflows Year Initial investment Not present value of the project Enter any number in the edit fields and then click Check Answer Data Table Year 1 CA $ 261,000 0 Year 2. 250,000 Year 3 226,000 Year 4 214,000 d ad (o (o Year 5 201,000 Year 6 177,000 Print Done - X Reference 1 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.9900 900 0.971 0.9620.952 0.943 0.935 0.926 0.9170 909 0.893 0.877 0.870 0.862 0 847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0 942 0915 0.889 0 864 0.840 0.816 0.7940.772 0.751 0.712 0.675 0.668 0.6410 609 0.579 Period 4 0.961 0.9240.888 0.8550 8230.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.562 0.516 0.482 Period 5 0.951 0.906 0.8630 822 0 784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.4760.437 0.402 Period 6 0.942 0.888 0.837 0 790 0.746 0.705 0,666 06300.596 0.564 0.507 0456 0.432 0.410 0.3700335 Period 7 0.933 0.871 0.813 0.750 0.711 0.665 0.623 0.583 0.5470513 0.452 0.400 0.375 0.354 0.3140 279 Periods 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040 351 0.3270 3050 2560.233 Period 9 0.914 0 837 0.766 703 0.6450.592 0.544 0.500 0.450 0424 0.3610 3080 2840.263 0225 0.194 Period 10 0.905 0 820 0.744 0.676 0.614 0.558 0.508 0463 04220386 0.322 0 2700247 0.227 0.1910 162 Period 11 0.895 0.8040.722 0650 0.585 0527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.1950 162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 497 0.444 0.397 0.356 0.319 0257 0.208 0.187 0.168 0.137 0.112 Period 13 0 879 0773 0.681 0.6010530 0.469 0.415 0.388 0.3280 290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0561 0.577 0.505 0.442 0:388 0.340 0.299 0 263 0.205 0.160.141 0.125 0.099 0.078 Period 15 0.861 0.743 06420555 0 481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.1230 1080 0840065 - Print Done Reference Present Value of Ordinary Annuity of S1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.9620 952 0.943 0.935 0 926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1942 1.913 1.885 1.859 1833 1.808 1.7831.759 1736 16901.647 1.625 1.60515661528 Period 3 2.94128842829 2.775 2723 2673 2624 2577 2 531 2487 2.402 2322 2283 2246 2174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3 240 3.170 3.037 2914 2855 2798 2.690 2 589 Period 5 4.853 4 713 4580 4 452 43294212 4.100 3.9933 890 3.791 3.605 3433 3.352 3274 3.1272.991 Period 6 5.795 5.601 5.417 5242 5076 4.917 4.7674 623 4.486 4355 4.111 3.889 3.784 3.685 3.498 3,325 Period 7 6.728 6.472 6230 6.002 5786 5.582 5,389 5206 5033 4.868 4,564 4288 4.160 4.039 3.812 3.605 Period 8 7 652 7 325 70206 733 6.463 62105.971 5.747 5.535 5335 4.968 45394487 4344 4.0783.837 Period 9 8.566 8.162 7 786 7435 7 108 6.802 6.515 6.247 5.9955.759 53284946 4.772 48074 3034031 Period 10 9.471 8983 8.530 8.111 7722736070246.710 6.418 6.145 56505.216 5,019 4833 4494 4.192 Period 11 10.3589.787 9.253 8.760 8.30678877499 7.139 6.8056,495 5.938 5453 62345.0294656 4327 Period 12 11.255 10 575 9 954 93858.8638.384 7.943 75367.161 6,814 6.1945.680 5.421 5.19747934439 Period 13 12. 134 11 348 10.635 9.986 9.3948.853 8 3587 904 7.487 7. 103 6.424 5.842 5.583 5.3424 9104.533 Period 14 13.004 12 106 1129610663 9 8999 295 8.7458244778873676.6288.002 5.724 6.458 50084611 Period 15 13.865 12 84911 93811.11810 3809712 9.108 8,559 806176066 811 6.142 5.8475575 50924.675

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

5th Edition

0130906999, 978-0130906991

More Books

Students also viewed these Accounting questions

Question

Are there professional development opportunities?

Answered: 1 week ago

Question

2. When is the job to be completed?

Answered: 1 week ago

Question

What are the steps involved in the HR planning process?

Answered: 1 week ago