{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T03:19:07-04:00", "answer_date": "2024-06-06 03:19:07", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2338704", "url": "\/study-help\/questions\/for-this-financial-word-problem-i-need-to-calculate-the-2338704", "question_creation_date_js": "2024-06-06T03:19:07-04:00", "question_creation_date": "Jun 06, 2024 03:19 AM", "meta_title": "[Solved] For this financial word problem I need to | SolutionInn", "meta_description": "Answer of - For this financial word problem I need to calculate the NPV: Suppose we are thinking about replacing an old computer w | SolutionInn", "meta_keywords": "financial,word,problem,npv,thinking,replacing,old,computer,new,one,cost,$1,760,000", "question_title_h1": "For this financial word problem I need to calculate the NPV: Suppose we are thinking about replacing an old computer with a new one. The", "question_title": "For this financial word problem I need to calculate the NPV: Suppose", "question_title_for_js_snippet": "For this financial word problem I need to calculate the NPV Suppose we are thinking about replacing an old computer with a new one The old one cost us $1,760,000 the new one will cost, $2,241,000 The new machine will be depreciated straight line to zero over its five year life It will probably be worth about $510,000 after five years The old computer is being depreciated at a rate of $392,000 per year It will be completely written off in three years If we don't replace it now, we will have to replace it in two years We can sell it now for $594,000 in two years, it will probably be worth $174,000 The new machine will save us $368,000 per year in operating costs The tax rate is 25 percent, and the discount rate is 8 percent ", "question_description": "

For this financial word problem I need to calculate the NPV: Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,760,000; the new one will cost, $2,241,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $510,000 after five years. The old computer is being depreciated at a rate of $392,000 per year. It will be completely written off in three years. If we don't replace it now, we will have to replace it in two years. We can sell it now for $594,000; in two years, it will probably be worth $174,000. The new machine will save us $368,000 per year in operating costs. The tax rate is 25 percent, and the discount rate is 8 percent.<\/p>", "transcribed_text": "", "related_book": { "title": "Mathematical Applications for the Management Life and Social Sciences", "isbn": "9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042", "edition": "11th edition", "authors": "Ronald J. Harshbarger, James J. Reynolds", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1386.jpg", "uri": "\/textbooks\/mathematical-applications-for-the-management-life-and-social-sciences-11th-edition-1386", "see_more_uri": "" }, "free_related_book": { "isbn": "B000CC0PRO", "uri": "\/textbooks\/basic-principles-and-components-of-fluid-technology-the-hydraulic-trainer-volume-1-1st-edition-b000cc0pro-319355", "name": "Basic Principles And Components Of Fluid Technology The Hydraulic Trainer Volume 1", "edition": "1st Edition" }, "question_posted": "2024-06-06 03:19:07", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/describe-the-difference-between-a-stock-dividend-and-a-cash", "description": "Describe the difference between a stock dividend and a cash dividend plus a DRIP.", "stars": 3 }, { "url": "\/study-help\/biochemistry-concepts-and-connections\/briefly-outline-the-reactions-involved-in-ketone-production-1203407", "description": "Briefly outline the reactions involved in ketone production.", "stars": 3 }, { "url": "\/study-help\/biostatistics\/for-the-regression-model-0-11--1981412", "description": "For the regression model ???? = ????0 + ????1????1 ++ ????????+1????????+1 ++ ???????????????? + ????, what is the test statistic for testing ????0 ????????+1 = ????????+2 = = ???????? = 0?", "stars": 3 }, { "url": "\/selected-financial-statement-data-for-schmitzer-inc-is-shown-below", "description": "Selected financial statement data for Schmitzer Inc. is shown below: What was the amount of net sales for2011? 2011 2010 Balance sheet nventories Ratio Gross profit ratio for 2011 Inventory turnover...", "stars": 3 }, { "url": "\/study-help\/questions\/how-does-the-quickbooks-accountant-software-respond-if-a-bill-9883475", "description": "How does the QuickBooks Accountant software respond if a bill is entered with a vendor name that is not included on the vendor list?", "stars": 3 }, { "url": "\/study-help\/questions\/brothers-adam-ben-and-charles-dawson-are-the-sole-shareholders-4520792", "description": "Brothers Adam, Ben, and Charles Dawson are the sole shareholders of Dawson's, Inc., which operated Dawson's Restaurant. 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