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Data Table En More Info Present Value of Ordinary Annuity of $1 Re Period 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18%

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Data Table En More Info Present Value of Ordinary Annuity of $1 Re Period 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 25% To convert to Brother, two operators would have to be retrained. Required training and remodeling would cost $6,000. Emory's three Xerox machines were purchased for $18,000 each, 4 years ago. Their expected life was 12 years. Their resale value now is $750 each and will be zero in 8 more years. The total cost of the new Brother equipment will be $100,000; it will have zero disposal value 1 .9709 .9615 9524 .9434 .9346 9259 .9091 .8929 .8772 .8621 .8475 .8333 .8000 Re 2 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7355 1.6901 1.6467 1.6052 1.5656 1.5278 1.4400 in 8 years. 3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 Bel x 2.4869 2.4018 2.3216 2.2459 2.1743 2.1065 1.9520 4 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.1699 3.0373 2.9137 2.7982 2.6901 2.5887 2.3616 5 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.7908 3.6048 3.4331 3.2743 3.1272 2.9906 2.6893 The three Xerox operators are paid $8 an hour each. They usually work a 40-hour week. Machine breakdowns occur monthly on each machine, resulting in repair costs of $125 per month and overtime of 5 hours, at time-and-one-half, per machine per month, to complete the normal monthly workload. Toner, supplies, and so on, cost $120 a month for each Xerox copier. The Brother system will require only two regular operators, on a regular work week of 40 hours each, to do the same work. Rates are $12 an hour, and no overtime is expected. Toner, supplies, and so on, will cost a total of $2,200 annually. Maintenance and repairs are fully serviced by Brother for $525 annually. (Assume a 52-week year.) 6 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.3553 4.1114 3.8887 3.6847 3.4976 3.3255 2.9514 4.8684 4.5638 4.2883 4.0386 3.8115 3.6046 3.1611 7 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 A. 8 7.0 6.7327 6.4632 6.2098 5.9713 5.7466 5.3349 4.9676 4.6389 4.3436 4.0776 3.8372 3.3289 Ne 9 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.7590 5.3282 4.9464 4.6065 4.3030 4.0310 3.4631 Srl Print Done 10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.1446 5.6502 5.2161 4.8332 4.4941 4.1925 3.5705 12 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 6.8137 6.1944 5.6603 5.1971 4.7932 4.4392 3.7251 Less: Initial investment 15 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 7.6061 6.8109 6.1422 5.5755 5.0916 4.6755 3.8593 NPV of net cash flows 18 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.2014 7.2497 6.4674 5.8178 5.2732 4.8122 3.9279 20 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 8.5136 7.4694 6.6231 5.9288 5.3527 4.8696 3.9539 25 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.0770 7.8431 6.8729 6.0971 5.4669 4.9476 3.9849 28 18.7641 16.6631 14.8981 13.4062 12.1371 11.0511 9.3066 7.9844 6.9607 6.1520 5.5016 4.9697 3.9923 30 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 9.4269 8.0552 7.0027 6.1772 5.5168 4.9789 3.9950 Print Done Data Table En More Info Present Value of Ordinary Annuity of $1 Re Period 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 25% To convert to Brother, two operators would have to be retrained. Required training and remodeling would cost $6,000. Emory's three Xerox machines were purchased for $18,000 each, 4 years ago. Their expected life was 12 years. Their resale value now is $750 each and will be zero in 8 more years. The total cost of the new Brother equipment will be $100,000; it will have zero disposal value 1 .9709 .9615 9524 .9434 .9346 9259 .9091 .8929 .8772 .8621 .8475 .8333 .8000 Re 2 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7355 1.6901 1.6467 1.6052 1.5656 1.5278 1.4400 in 8 years. 3 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 Bel x 2.4869 2.4018 2.3216 2.2459 2.1743 2.1065 1.9520 4 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.1699 3.0373 2.9137 2.7982 2.6901 2.5887 2.3616 5 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.7908 3.6048 3.4331 3.2743 3.1272 2.9906 2.6893 The three Xerox operators are paid $8 an hour each. They usually work a 40-hour week. Machine breakdowns occur monthly on each machine, resulting in repair costs of $125 per month and overtime of 5 hours, at time-and-one-half, per machine per month, to complete the normal monthly workload. Toner, supplies, and so on, cost $120 a month for each Xerox copier. The Brother system will require only two regular operators, on a regular work week of 40 hours each, to do the same work. Rates are $12 an hour, and no overtime is expected. Toner, supplies, and so on, will cost a total of $2,200 annually. Maintenance and repairs are fully serviced by Brother for $525 annually. (Assume a 52-week year.) 6 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.3553 4.1114 3.8887 3.6847 3.4976 3.3255 2.9514 4.8684 4.5638 4.2883 4.0386 3.8115 3.6046 3.1611 7 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 A. 8 7.0 6.7327 6.4632 6.2098 5.9713 5.7466 5.3349 4.9676 4.6389 4.3436 4.0776 3.8372 3.3289 Ne 9 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.7590 5.3282 4.9464 4.6065 4.3030 4.0310 3.4631 Srl Print Done 10 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.1446 5.6502 5.2161 4.8332 4.4941 4.1925 3.5705 12 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 6.8137 6.1944 5.6603 5.1971 4.7932 4.4392 3.7251 Less: Initial investment 15 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 7.6061 6.8109 6.1422 5.5755 5.0916 4.6755 3.8593 NPV of net cash flows 18 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.2014 7.2497 6.4674 5.8178 5.2732 4.8122 3.9279 20 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 8.5136 7.4694 6.6231 5.9288 5.3527 4.8696 3.9539 25 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.0770 7.8431 6.8729 6.0971 5.4669 4.9476 3.9849 28 18.7641 16.6631 14.8981 13.4062 12.1371 11.0511 9.3066 7.9844 6.9607 6.1520 5.5016 4.9697 3.9923 30 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 9.4269 8.0552 7.0027 6.1772 5.5168 4.9789 3.9950 Print Done

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