Answered step by step
Verified Expert Solution
Question
1 Approved Answer
HASf company is considering the replacement of two machines with a new more efficinet machine it has determined that the relevant after tax incremental operaitng
HASf company is considering the replacement of two machines with a new more efficinet machine it has determined that the relevant after tax incremental operaitng cash flows of this repalcement proposal are as follows | |||||
Year | cash flow | ||||
0 | -404,424 | ||||
1 | 86,890 | ||||
2 | 106,474 | ||||
3 | 91,612 | ||||
4 | 84,801 | ||||
5 | 84,801 | ||||
6 | 75,400 | ||||
7 | 66,000 | ||||
8 | 92,400 | ||||
Find out the following if discount rate is 14% | |||||
net present value | |||||
benefit cost ratio | |||||
Profitability index |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started