Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Follow the format shown in Exhibit 125.1 and Exhibit 128.2 as you complete the requirements below. Spiro Hospital is investigating the possibility of investing in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Follow the format shown in Exhibit 125.1 and Exhibit 128.2 as you complete the requirements below. Spiro Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After tax cash innows for the two competing projects are as follows: Year Briggs Equipment 1 Puro Equipment 5320,000 280,000 240,000 2 $120,000 120,000 320,000 3 4 160,000 400,000 S 120,000 440,000 Both projects require an initial investment of $500,000. In both cases, assume that the equipment has a life of Syenes with no salvage value Required Round present value calculations and your finanswers to the nearest dollar 1. Assuming a discount rate of 12%, compute the net present value of each piece of equipment Puro equipment 349,529 X Briggs equipment 434,451 X 2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will produce even cash nows over its 5-year lite. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 13% discount rate 275,900 X per year Feedback Whed My W Incorrect Exhibit 128.1 Present Value of a Single Amount 195 2%24 4% 64 7 94 10% 12% 14% 16% 1896 20% 25% 30% 10.99010 0,98019 0.97087 0.96154 0.95238 0.94340 0.03458 0.92591 0.91741 0.90909 0.19286 0.87719 0.86207 0.34746 0.83333 0.0000 0.76923 2 0.98030 0.96117 0.94260 0.92456 0.90703 0.82000 0.87344 0.85734 0.84168 0.12645 0.79719 0.76947 074316 0.71818 0.69444 0.64000 0.59172 30.97059 0.04212 0.01514 0.88900 0.16784 0.82962 0.81630 079383 0.77218 075131 0.71178 0.67497 061066 0.60863 0.57870 0.51200 0.45517 4 0.96098 0.92385 0.88849 0.85480 0.62270 0.79209 0.76290 073503 0.70343 0.68301 0.63552 0.50208 0.55229 0 51579 0.46225 0.40960 035013 5 0.05147 0.90573 0.86261 082191 0.78153 0.74726 0.31299 0.58058 064903 0.62092 0.56743 0.51937 0.47611 0.43711 0.40188 0.32768 0.20933 6 0.94205 0.88797 0.81748 0.79031 07422 070406 0.66634 0.63017 0.50627 0.56447 0.50661 0.45559, 04104 0.37043 0.33490 0 26214 0.20718 7 093272 0.87056 081309 075992 071068 0.66506 0.62275 0.58349 0.54703 051316 0,45275 0.30964 0.35383 0.31393 0.27908 0.20972 0.15937 8092348 0.85340 078941 0.71069 0.67684 062741 0.58201 54027 0.50187 0.46651 0.40388 0.35056 0.30503 0 26604 0.23257 0.16777 0.12259 9 0.91434 0.83676 0.76642 0.70259 0.64461 0.59190 0.54193 050025 0.46043 0.42410 0.36061 0.30751 0.26295 0.22546 0.19381 0.13422 0.09430 10 0.90529 0.82035 0.74400 0.67556 0.61301 0.55839 0.50835 0.46319 0.42241 038554 0.32197 0.26974 0 22668 0.19106 0.16151 0.10737 0.07254 11 0.89632 0.80426 0.72242 0.64958 0.5668 0.52679 0.47509 042688 6.38753 0.35049 0.28748 0.23662 0.19542 0,16192 0.13459 0,08590 0.05580 12 0.18745 0.78849 0.70138 0.62460 055654 0.49697 0.44401 0.39711 0.35553 0.31661 0.25668 0.20736 0.16846 0.13722 0.11216 0,06872 0.04292 13.7866 0.77303 0.60005 0.60057 053032 0.46884 0.41496 0.16770 0.12618 0.28966 0.22917 0.18207 0.14527 0.11629 0.09346 0.05491 0.03302 14 0.56996 0.75758 0.66112 0.57748 O SOSO7 0.44230 0.38782 0.34046 0.29925 0.26333 0.2042 0.15971 0.12520 0.098SS 0.02789 0.04398 0.02540 15 0.86135 0.74301 064136 055526 0.48102 0.41727 0.16245 0.31524 0.27454 0.23939 0.18270 0.14010 0.10793 008352 0.06491 0.03518 0.01954 16 0.15252 0.72845 062317 0.59391 0.45811 0.39365 0.33873 0.29189 0.25187 021763 0.16312 0.12289 0.09304 0.07078 0.05409 0.02815 0.01501 17 0.34438 071476 0.60502 0.11 0.43630 0.37136 0.11657 0.27027 0.23107 0.19784 0.14564 0.10780 0.08021 0.05998 0.04507 0.02252 0.01156 18 002 0.70016 0.58738 0.49763 0.41552 0.35034 020586 0.25025 0.21199 0.17986 0.13004 0.00456 0.06014 0.05083 0.03756 601801 0.00810 19. 0.12714 0.68643 0.57029 0.47464 0.19573 033051 0.27651 0.23171 0.19449 0.16351 0.11611 0.08295 0.05110 004108 0.01130 0.01441 0.00684 20051954 067297 0536 0.45619 0.17619 031180 0.25842 0.21455 0.17641 0.14864 0.10367 0.07276 00510 0.03651 0.0208 0.01153 0.00526 21081143 065978 0.32755 04183 0.15804 0.29416 O.MISI 0.1966 0.16170 0.1351) 0.00256 0.06183 0.04030 0.03004 0.02174 0.00022 0.00405 22 0.0006464052180042196 034185 0.27751 0.22571 0.15394 0.15018 0.12285 0.08264 0,05599 0.01819 0.02622 0.01811 0.00738 000111 22 0.29544 0.61416 050669 0.4057) 012557 0.26160 0.21095 017012 011778 0.11168 0.07179 0.0411 0.01292 0.02222 0.01500 0.00590 0.00239 24 08757 0.0172 04019119012011007 0.00 0.10715 0.15770 0 12640 0.10151 0.0451 0.0408 0.02838 0.01883 0.01258 0.00472 0.00114 25 0.77977 0.00093 0.47761 0.37512 0.29530 0.23300018425 014502011597 0.09230 005882 0.0379 00247 001596 0.01048 0.0097 0.00142 26 0.7720500758 46100 0000 026124 0.21961 0.17220 01110 010639 0001010052520011 002109 0.0172 0.00074 0.00102 0.00100 27 0.7640 08586 044501001462 0.26785 0207 0.10001012519 0061 000 004619 002001 0.001 0.01146 0.00228 0.0022 0.00014 2000.1417 0700318 025509 019503015040 0.11501 0005 006014 0.04187 002551 0.01567 0.00071 0.00002 0.0010) 0.00063 290 0.11 0.00024295 016456014056 0.107311 08215 0.06104 0.0175 0.02237 001151 0.00121 000506 0.00155 0.00050 10 04192 0.55207 0.41199 0.10022 0.21 0.17411 0.1 0.00036007537 005711 0011 001961 0.01165 0.00097 0.00421 0.00124 0.00018 "AX Exhibit 120.2 Present Value of an Annuity 4 1 24 39 4% 54 6 7% 9% 109 12% 144 16% 18% 20% 25% 30% 1 9900 0.98039 097087 0.06154 0.05231 0.04100 0.03450293 091743090909 0.89286 0.87719 O.M207 0.54746 0.83333 0.80000 0.76923 2 197040 104156 19137 138600 1.85941 1.83330 1.80802 1.78326 1.75911 1.73554 1.69005 1.64666 1.60523 156564 1.52776 1.44000 1.36095 1 2.94090 28388 282861 2.77500 2.72325 2.67201 262412 2.57710 2531292485 240183 2.32163 2.24580 2.17427 2.10648 1.95200 151611 390197 307733.71710 62990 1.54595- 1.46511 2.38721 131213 121972 3.10987 3.03735 2.91371 2.79818 2.60006 255873 2.36160 2.16624 5 485343 71346 4.57971 445182432048 421236 10020 3.99271 28896$ 3.79079 1.60478 3.43308 3.27429 112717 2.99061 2.68928 ZAISSY 6 5.79541 5.60141 541719 5.24216 5.07569 491732 476654 4.62261 448592435526 411141 3.88867 368474 2.49760 1.12551 2.95142 264275 7 672810 6.47199 623028600205 5.76637 5.58238 5.38929 5.20617 5.01295 4.868424.56376 4.2683003857 181151 3.60459 116114 280211 87.65168722548 701069 6.73274 646121 620979 5.97110 534664 5.51452533493 496764 4.63686414150 407757 3.43716 1.22891 2.92470 9 S660Z 3.16224 7.11 7.43533 7.10782 680569 6.51521 624680 5.90525 5.75902 $.32825 494637 460654 410102 403097 1.46312 301900 10247110 259 851020 811090 7.721737.36000 7.02358 71008 6,41766614457 5.680225.2161248321 440400 4.19247 3:57050 3.00154 11 10.36763 9.75 9.25262 76048 8.30641 7.88687 7 49567 7.13896 6.805196.40506 591770 5.45271 5.02864 465601 412706 1.65640 3.14734 12 11 25505 10.57514 05400938507 8.56125 8 38384 7.94260 7.53608 7.1607361 369 6.19437 5.66020 5.19711 4.793224.49223.72512 3.19026 13 12.13374 11 34327 10.61496 9.98565 9.19357 885265 $35765 7.90378748690710336 642355 5.34236 5.34233 4.90951 4.53268 3.73010 322328 14 1100170 12.10625 11.2007 10.56112 9.19864 9.29098 8.74547 8.24424 7.766157.36669 6.62817 6.00207 5.46751 5.00806 461057 3.82408 1.24867 15 12.56505 12.84926 11.93794 11.11819 10.379669.71225 9.10791 855948 806060 7.60608 681056 614217 5.57546 5.0915 547 3.85926326821 16 14.21787 17.57771 12.56110 11652301083777 10.10590 944665 885117 1312567.82371 6,97299 626506 5,66550 5.16235 4.72956 3.88741 328324 17 15:56225 14.29187 13.166121216567 11 27407 10.47726 9.76322 9.12164 654363802155 7.11966.17286 5.748705-22233 4.7746) 3.2009 29480 18 16:1912714.0920212.75351 1265930 11.6895910,8270 10.05909 9.37189 8755638.20141 7.24967 6.46742 5.87785 5.27316 4.81219 192794 0100 19 1722601 156784614223011133944 1208532 11.15812 1033560 9.60360 8950118164927.46578 655037 5.87746 531624 1.64350 3.90735 3.71053 2016 AS515142 14.87747 13.990331246221 1.460921059401 981815 012855851356 746044 6.62313 592884 535275 486958395388111579 21 T 8565 17 01121 15:4150214029161212115 11.7608 10:83553 10.01680 9.29224664869756200 66869 5.9731453816841913236111131984 22 1903 17.65805 15 93602 45112 11.16300 12.0415811.06124 10.20074 9442438.77154 7.54465 6.74294 601133 5:40990 4.90943 3,97049 332296 23204582 18 29220 16 4461 14856841146857 12 303 38 11.27210 10 17106 0.50218.88122 7.7111 6.79206 604425 541212 492453 1.976192 2421211018.0130169355415.2460611.70866 12 5501611246933 1052876 9.70661 898474 778432 6.835146.0726) 545095 491710 1.90111 132719 25 2023161952346 17:4111515622081409194 12733611.65158 10 67178 9.822559.07704754146.07291 6.09700 5.46691 494759 1.984912266 26 >>7020 20-1210417MS282771437519 13.003171132578 1089909.92807 0.16095 7.19566 90608611878 548043 495632 3.05791 332970 27 2255961 2070600 18-12701161295014642011321053 11.98671109351610.036589 23722704255 691515 613636 5.491894.9360 1.99033113054 2144212127.1861116.66306113406761213711 11 05108 10.116139 0657 70442 606615204 550160406007 1991261111 29 25.0657921.14081918346516011514107 1.590721227767111581 10.108269.16961 02151698304 616555550981 4.9747230911 10.250/1 22A10004417.2920115.37205137443) 12.409041125778 10.27565942601 .05518 7002666.17720 5510314790 99505131206

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

Accountability Of Local Authorities In England And Wales, 1831-1935 Volume 1

Authors: Hugh Coombs, J. R. Edwards

1st Edition

1138965758, 9781138965751

More Books

Students also viewed these Accounting questions

Question

Describe social factors that affect marketing AppendixLO1

Answered: 1 week ago

Question

Recognize and describe the steps in the recruiting process

Answered: 1 week ago

Question

Appreciate the contribution made by a positions incumbent

Answered: 1 week ago

Question

Know how to conduct a position analysis

Answered: 1 week ago