Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please!!!! Sandhill Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on

help please!!!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sandhill Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided here. Click here to visw the factortable Calculate the net present value and profitability index of eich machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number es 45 or parentheses es (45). Round answer for present value to 0 decimal places eg. 125 and profitability inder to 2 decimal places, es. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negotive sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, eg. 125 and profitability index to 2 decimal places, es. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Read aloud Ask Bing Al of 4 CD TABLE 1 Future Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 0 & 1.00000 & 1,00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1,00000 \\ \hline 1 & 1. & 5000 & 6000 & 1.07000 & 8000 & 9000 & 0000 & 11000 & 2000 & 15000 \\ \hline 2 & 1.08160 & 9250 & 2360 & 1.14490 & 6640 & 8810 & 1.21000 & 1.23210 & 1.25440 & \begin{tabular}{l} 250 \\ 088 \end{tabular} \\ \hline 3 & 2486 & 763 & 1.19102 & 1.22504 & 971 & 1.29503 & 1.33100 & 1.36763 & 10493 & 088 \\ \hline 4 & 1.16986 & 551 & 1.26248 & 1.31080 & 049 & 1.41158 & 1.46410 & 1.51807 & 1.57352 & \begin{tabular}{l} 1.74901 \\ 2.01136 \end{tabular} \\ \hline 5 & 1.21665 & 1.27628 & 1.33823 & 1.40255 & 1,46933 & 1.53862 & 1.61051 & 1.68506 & 1.76234 & 2.01136 \\ \hline 6 & 1.26532 & 1.34010 & 1.41852 & 1.50073 & 1.58687 & 1.67710 & 1.77156 & 1.87041 & 7382 & \begin{tabular}{l} 2.31306 \\ 2.66002 \end{tabular} \\ \hline 7 & 1 & 1 & 9363 & 1 & 1 & & 872 & 16 & & \\ \hline 8 & & 746 & 1.59385 & 1819 & & 9256 & 4359 & 10454 & 596 & 902 \\ \hline 9 & 331 & 1.5 & 8948 & 3846 & Do & 2 & 5795 & 2.55803 & 308 & 1788 \\ \hline 10 & 1.48024 & 1.62889 & 1.7 & 1.96715 & 2.15892 & 2.3 & 2.59374 & 2.83942 & 3.10585 & 4.04556 \\ \hline 11 & 1.53945 & 1.71034 & 39830 & 2.10485 & 2.33164 & 2.58043 & 2.85312 & 3.15176 & 7855 & \begin{tabular}{l} 4.65239 \\ 5.35025 \end{tabular} \\ \hline 12 & 03 & 1 & & & 17 & & & & \begin{tabular}{l} 598 \\ 349 \end{tabular} & \\ \hline 13 & 1,6 & 65 & 2.13293 & 2. & 2.71962 & 6581 & 3.45227 & 28 & 49 & \\ \hline 14 & 1.7 & 1.97993 & 2.26090 & & 3719 & 3.34173 & 3.79750 & 244 & \begin{tabular}{l} 11 \\ 57 \end{tabular} & \begin{tabular}{l} .07571 \\ 13706 \end{tabular} \\ \hline 15 & 1.80094 & 2.07893 & 2.39656 & 2.75903 & 3.17217 & 3.64248 & 4.17725 & 4.78459 & & 8,13706 \\ \hline 16 & 1.8729 & 2.18287 & 2.54035 & 2.95216 & 3,42594 & 3.97031 & 4.59497 & 5.31089 & 39 & \begin{tabular}{r} 9.35762 \\ 10.76126 \end{tabular} \\ \hline & 1.94790 & 2.29202 & & & 3,70 & 4.32763 & & & & \begin{tabular}{l} 6126 \\ 7545 \end{tabular} \\ \hline 18 & 2,02582 & 2.40062 & & 9993 & 3.99602 & 4.71712 & 55992 & 55 & \begin{tabular}{l} 7.68997 \\ 8.61276 \end{tabular} & \begin{tabular}{l} 12,37545 \\ 14,23177 \end{tabular} \\ \hline 19 & 2.10685 & 2.52695 & 3.02560 & & 4.31570 & 5.14166 & 6.11591 & 7.26334 & \begin{tabular}{l} 8.61276 \\ 9.64629 \end{tabular} & \begin{tabular}{l} 14,23177 \\ 16,36654 \end{tabular} \\ \hline 20 & 2.19112 & 2.05330 & 3.20714 & 3.86968 & 4.66096 & 5.60441 & 6.72750 & 8.06231 & 9.64629 & 16.36654 \\ \hline \end{tabular} DBLE 2 Future Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} (ii) \\ Payments \end{tabular} & 40 & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 1.00000 & 1,00000 & 1.00000 & 1.0000 & 1.00000 & 1,00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 2 & 2.04000 & 2.05000 & 2.06000 & 2.0700 & 2.08000 & 2.09000 & 2,10000 & 2.11000 & 2.12000 & 2.15000 \\ \hline 3 & 3.12100 & 3.15250 & 3.18360 & 3.2149 & 3,24640 & 3.27810 & 3.31000 & 334210 & 3.37440 & 3.47250 \\ \hline 4 & \begin{tabular}{r} 4.24646 \\ 5.632 \end{tabular} & 4.31013 & 4.37462 & 4.4399 & 450611 & \begin{tabular}{l} 4.57313 \\ 5.98471 \end{tabular} & \begin{tabular}{r} 4.64100 \\ 6.10510 \end{tabular} & \begin{tabular}{l} 4.70973 \\ 6.22780 \end{tabular} & \begin{tabular}{l} 4.77933 \\ 6.35285 \end{tabular} & \begin{tabular}{l} 4.99338 \\ 6.74238 \end{tabular} \\ \hline 5 & \begin{tabular}{l} 5.41032 \\ 0.63298 \end{tabular} & 5.52563 & 5.63709 & \begin{tabular}{l} 5.7507 \\ 7.533 \end{tabular} & \begin{tabular}{l} 5.66660 \\ 733592 \end{tabular} & \begin{tabular}{l} 5.98471 \\ 752334 \end{tabular} & \begin{tabular}{l} 0.10510 \\ 7.71561 \end{tabular} & 7.91280 & 8.11519 & 8,75374 \\ \hline \begin{tabular}{l} 6 \\ 7 \end{tabular} & \begin{tabular}{l} 6.03298 \\ 7.89829 \end{tabular} & \begin{tabular}{l} 6.80191 \\ 3.14201 \end{tabular} & \begin{tabular}{l} 6.97532 \\ 8.39384 \end{tabular} & \begin{tabular}{l} 7.1533 \\ 8.6590 \end{tabular} & \begin{tabular}{l} 7.93592 \\ 8.92280 \end{tabular} & 920044 & 9.48717 & 978327 & 10.08901 & 11.06080 \\ \hline 8 & 9.21423 & 9.54911 & 989747 & 10.2595 & 10.03665 & 1102847 & 11.43589 & 11.85943 & 1229969 & 13.72682 \\ \hline 9 & 1058280 & 1102650 & 11,49132 & 11.9780 & 12.48756 & 1302104 & 1357948 & 14.16397 & 14.77560 & 10.78584 \\ \hline 10 & 1200011 & 1257789 & 13.18029 & 138164 & 14.48056 & 15.19293 & is,93743 & 1022201 & 12,54874 & 20.10372 \\ \hline ii. & 13.45645 & 1+20079 & 14.97164 & 15.7830 & 16.64549 & 17.56029 & 1853117 & 19.56143 & 20.05458 & 243920 \\ \hline 12 & 15.02581 & 15,91713 & 10.86994 & 17.8885 & 1897713 & 20.14072 & 21.38428 & 22.71319 & 24:13313 & 29.00167 \\ \hline \end{tabular} om (1) Read aloud Ask Bing Al 3 of 4 t \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & 6.63298 & 6.80191 & 6.97532 & 7.15 & & 7.52334 & & 7.91286 & 11519 & 8.7 \\ \hline & 7.89829 & 8.14201 & 8,39384 & 8.6540 & 8.9228 & 9.20 & 9.48717 & & & \\ \hline 8 & 9.21423 & 9,54911 & 9.89747 & 10.2598 & 10.63663 & 11.02847 & 11.43589 & 11.85943 & 12.29969 & \\ \hline 9 & 10.58280 & 11.02656 & 11.49132 & 11.9780 & 12.48756 & 13.02104 & 13.57948 & \begin{tabular}{l} 14.16397 \\ 16.72201 \end{tabular} & \begin{tabular}{l} 14.77566 \\ 17.54874 \end{tabular} & \begin{tabular}{l} 16.78584 \\ 20.30372 \end{tabular} \\ \hline 11 & 13.48635 & \begin{tabular}{l} 12.57789 \\ 14.20679 \end{tabular} & 14.97164 & \begin{tabular}{l} 13.8164 \\ 15.7836 \end{tabular} & \begin{tabular}{l} 14.48656 \\ 16.64549 \end{tabular} & \begin{tabular}{l} 9293 \\ 66029 \end{tabular} & \begin{tabular}{l} 15.93743 \\ 18.53117 \end{tabular} & 19.56143 & 20.65458 & 24.34928 \\ \hline 12 & 15.02581 & 15.91713 & 16.86994 & 17.8885 & 18.97713 & 20.14072 & 21.38428 & 22.71 & 24. & 29. \\ \hline 13 & 16.62684 & 17.71298 & 18.88214 & 20.1406 & 21.49530 & 22.95339 & 24.52271 & 26.21164 & \begin{tabular}{l} 28.02911 \\ 32.39260 \end{tabular} & \begin{tabular}{l} 34.35192 \\ 40.50471 \end{tabular} \\ \hline \begin{tabular}{l} 14 \\ 15 \end{tabular} & 18.29191 & 19.59863 & 21.01507 & 22.5505 & 24.21492 & 26.01919 & 27.97498 & 30.09492 & \begin{tabular}{l} 32.39260 \\ 37.27972 \end{tabular} & \begin{tabular}{l} 40.50471 \\ 47.58041 \end{tabular} \\ \hline 16 & \begin{tabular}{l} 20.02359 \\ 21.82453 \end{tabular} & \begin{tabular}{l} 21.57 \\ 23.65 \end{tabular} & \begin{tabular}{l} 23.27597 \\ 25.67253 \end{tabular} & \begin{tabular}{l} 25.1290 \\ 27.8881 \end{tabular} & \begin{tabular}{l} 27.15211 \\ 30.32428 \end{tabular} & \begin{tabular}{l} 29.36092 \\ 33.00340 \end{tabular} & \begin{tabular}{l} 31.7 \\ 35.9 \end{tabular} & \begin{tabular}{l} 34.40536 \\ 39.18995 \end{tabular} & 42.75328 & \begin{tabular}{l} 47.58041 \\ 55.71747 \end{tabular} \\ \hline 17 & 23.69751 & 25.84037 & \begin{tabular}{l} 25.67253 \\ 28.21288 \end{tabular} & \begin{tabular}{l} 27.8881 \\ 30.8402 \end{tabular} & \begin{tabular}{l} 30.32428 \\ 33.75023 \end{tabular} & \begin{tabular}{l} 33.00340 \\ 36.97351 \end{tabular} & \begin{tabular}{l} 35.94973 \\ 40.54470 \end{tabular} & 44.50084 & 48.8 & \begin{tabular}{l} 55.71747 \\ 65.07509 \end{tabular} \\ \hline 19 & 25.64541 & 28.13238 & 30.90565 & 33.9990 & 37.45024 & 41.30134 & 45.59917 & 50.39593 & 55.74972 & 75.83636 \\ \hline 19 & 27.67123 & 30.53900 & 33.75999 & 37.3790 & 41,44626 & 46.01846 & 51.15909 & 56.93949 & 63.43968 & 88.21181 \\ \hline 20 & 29.77808 & 33,06595 & 36.78559 & 40.9955 & 45.76196 & 51.16012 & 57.27500 & 64.20283 & 72.05244 & 102.44358 \\ \hline \end{tabular} TABLE 3 Present Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (ii) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 96154 & 95238 & 94340 & 0.93458 & 92593 & 91743 & 90909 & 90090 & 89286 & 86957 \\ \hline 2 & 92456 & 90703 & 89000 & 0.87344 & 85734 & 84168 & 82645 & .81162 & .79719 & .75614 \\ \hline 3 & 88900 & 86384 & 83962 & 0.81630 & .79383 & .77218 & .75132 & .73119 & .71178 & .65752 \\ \hline 4 & 85480 & 82270 & .79209 & 0.76290 & .73503 & .70843 & .68301 & 65873 & 63552 & 57175 \\ \hline 5 & 82193 & .78353 & 74726 & 0.71299 & .68058 & 64993 & .62092 & 59345 & -56743 & 49718 \\ \hline 6 & 79031 & 74622 & .70496 & 0.60634 & 63017 & 59627 & 56447 & 53464 & 50663 & A3233 \\ \hline 7 & 75002 & 71068 & 06506 & 0.02275 & .58349 & 54703 & $1316 & 48166 & 45235 & 37594 \\ \hline 8 & 73009 & 67684 & .62741 & 0.58201 & 54027 & 50187 & .46651 & 43393. & 40388 & 32690 \\ \hline 9 & 70259 & .6461 & 59190 & 0.54393 & 50025 & 46043 & 42410 & 39092 & 36061 & 28426 \\ \hline 10 & 67556 & 61391 & 55839 & 0.50835 & 46319 & .42241 & 38554 & 35218 & 32197 & 24719 \\ \hline \begin{tabular}{l} 11 \\ 12 \end{tabular} & 64958 & 58468 & 52679 & 0.47509 & 42888 & 38753 & 35049 & 31728 & 28748 & 21494 \\ \hline \begin{tabular}{l} 12 \\ 13 \end{tabular} & 62460 & 35684 & 49697 & 0.4401 & 39711 & 35554 & 31863 & 28584 & 25668 & 18691 \\ \hline \begin{tabular}{l} 13 \\ 14 \end{tabular} & .00057 & 53032 & 46884 & 041496 & 36770 & 32618 & 28966 & 25751 & .22917 & \begin{tabular}{r} 16253 \\ 14133 \end{tabular} \\ \hline \begin{tabular}{l} 14 \\ 15 \end{tabular} & 57748 & 50507 & 44230 & 0.38782 & 34046 & 29925 & 26333 & 23199 & \begin{tabular}{r} 20462 \\ 18270 \end{tabular} & \begin{tabular}{l} 14133 \\ 12289 \end{tabular} \\ \hline \begin{tabular}{l} 15 \\ 16 \end{tabular} & 55526 & 48102 & 41727 & 0.36245 & 31524 & 27454 & 23939 & 20900 & \begin{tabular}{l} 18270 \\ 10312 \end{tabular} & 12289 \\ \hline \begin{tabular}{l} 16 \\ 17 \end{tabular} & 53391 & 45811 & 39365 & 033873 & 29189 & 25187 & 21763 & 18829 & \begin{tabular}{l} 16312 \\ 14564 \end{tabular} & \begin{tabular}{l} 10687 \\ 09293 \end{tabular} \\ \hline 17 & 51337 & 43630 & 37136 & 0.31657 & 27027 & -23107 & 19785 & .16963 & \begin{tabular}{l} 14564 \\ 13004 \end{tabular} & \begin{tabular}{l} 09293 \\ 08081 \end{tabular} \\ \hline \begin{tabular}{l} 18 \\ 19 \end{tabular} & 49363 & 41552 & 35034 & 029586 & 25025 & 21199 & 17986 & 15282 & \begin{tabular}{l} 13004 \\ 11611 \end{tabular} & \begin{tabular}{l} 08081 \\ 07027 \end{tabular} \\ \hline 20 & \begin{tabular}{l} 47404 \\ 45039 \end{tabular} & 39573 & \begin{tabular}{l} 33051 \\ 31180 \end{tabular} & \begin{tabular}{l} 0.27615 \\ 0.25842 \end{tabular} & \begin{tabular}{l} 23121 \\ 21455 \end{tabular} & \begin{tabular}{l} 19449 \\ 17843 \end{tabular} & \begin{tabular}{l} 16351 \\ 14864 \end{tabular} & \begin{tabular}{l} 13768 \\ 12403 \end{tabular} & \begin{tabular}{l} 1011 \\ 10362 \end{tabular} & \begin{tabular}{l} 07027 \\ 06110 \end{tabular} \\ \hline \end{tabular} \begin{tabular}{lllllllllll} 13 & .60057 & .53032 & .46884 & 0.41496 & 36770 & .32618 & .28460 & .25191 & .20462 & .14133 \\ 14 & .57748 & .50507 & .44230 & 0.38782 & .34046 & .29925 & .26333 & .23199 & .18270 & .12289 \\ 15 & .55526 & .48102 & .41727 & 0.36245 & .31524 & .27454 & .23939 & .20900 & .1068 \\ 16 & .53391 & .45811 & .39365 & 0.33873 & .29189 & .25187 & .21763 & .18829 & .16312 & .10687 \\ 17 & .51337 & .43630 & .37136 & 0.31657 & .27027 & .23107 & .19785 & .16963 & .14564 & .09293 \\ 18 & .49363 & .41552 & 35034 & 0.29586 & .25025 & .21199 & .17986 & .15282 & .13004 & .08081 \\ 19 & .47464 & 39573 & .33051 & 0.27615 & .23171 & .19449 & .16351 & .13768 & .11611 & .07027 \\ 20 & .45639 & .37689 & .31180 & 0.25842 & .21455 & .17843 & .14864 & .12403 & .10367 & .06110 \\ \hline \end{tabular} TABLE 4 Present Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Payments \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & .96154 & .95238 & 94340 & 0.93458 & .92593 & .91743 & 90909 & .90090 & .89286 & 86957 \\ \hline 2 & 1.88609 & 1.85941 & 1.83339 & & 1. & 1.75911 & 1.73554 & 1.71252 & 1.69005 & 1.62571 \\ \hline 3 & 2.77509 & 2.72325 & 7301 & 32 & 2 & 2.53130 & 2.48685 & 2.44371 & 2.40183 & 2.28323 \\ \hline 4 & 3.62990 & 3.54595 & 3,46511 & 3.38721 & 3.31213 & 3.23972 & 3.16986 & 3.10245 & 3.03735 & 2.85498 \\ \hline 5 & 4.45182 & 4.32948 & 4.21236 & 4.10020 & 3.99271 & 3.88965 & 3.79079 & 3.69590 & 3.60478 & 3.35216 \\ \hline \begin{tabular}{l} 7 \\ 8 \end{tabular} & 6.00205 & 5.78637 & 5.58238 & & 5 & 5 & 4.86842 & 4.71220 & 4.56376 & 4. 16042 \\ \hline \begin{tabular}{l} 8 \\ 9 \end{tabular} & \begin{tabular}{l} 6.73274 \\ 7.43533 \end{tabular} & 6.46321 & 6.20979 & 5.97130 & 64 & 5.53482 & 5.33493 & 5.14612 & 4.96764 & 4.48732 \\ \hline \begin{tabular}{c} 9 \\ 10 \end{tabular} & & 7.10782 & 6.80169 & 6.5 & 89 & 5.995 & 5.75902 & 5.53705 & \begin{tabular}{l} 5.32825 \\ 56502 \end{tabular} & \begin{tabular}{l} 4.77158 \\ 501877 \end{tabular} \\ \hline II & & 7.72173 & 7,3 & 7. & 8 & & 6.14457 & \begin{tabular}{l} 5.88923 \\ 6.80652 \end{tabular} & \begin{tabular}{l} 5.65022 \\ 5.03770 \end{tabular} & \begin{tabular}{l} 5.01877 \\ 5.23371 \end{tabular} \\ \hline 12 & \begin{tabular}{l} 8.76048 \\ 9.38507 \end{tabular} & \begin{tabular}{l} 8.30641 \\ 8.86325 \end{tabular} & \begin{tabular}{l} 7.88687 \\ 8.38384 \end{tabular} & & \begin{tabular}{l} 7.13896 \\ 7.53608 \end{tabular} & \begin{tabular}{l} 6.80519 \\ 7.16073 \end{tabular} & \begin{tabular}{l} 6.49506 \\ 6.81369 \end{tabular} & \begin{tabular}{l} 6.20652 \\ 6.49236 \end{tabular} & \begin{tabular}{l} 5.93770 \\ 6.19437 \end{tabular} & \begin{tabular}{l} 5.23371 \\ 5.42062 \end{tabular} \\ \hline 13 & 9.98565 & 9.39357 & 8.85268 & 8.35765 & 7.90378 & 7.48 & 7.10336 & 6.74987 & 6.42355 & 5.58315 \\ \hline 14 & 10.56312 & 9.89864 & 9.29498 & 8.7 & 824424 & 7.78615 & 7.36669 & 6.98187 & 6.62817 & 5.72448 \\ \hline 15 & 11.11839 & 10.37966 & 9.71225 & 9.10791 & 8.55948 & 8.06069 & 7.60608 & 7.19087 & 6.81086 & 5.84737 \\ \hline 16 & 11.65230 & 10.83777 & 10.10590 & 9.44665 & 8.85137 & 8.31256 & 7.82371 & 7.37916 & 6.97399 & 5.95424 \\ \hline 17 & 12.16567 & 11.27407 & 10 & & 9.12 & 8.54363 & 8.02155 & 7.54879 & 7.11963 & 6,04716 \\ \hline 18 & 12.65930 & 11.68959 & 10.82760 & 10.05 & & 8.75563 & 820141 & 7.70162 & 7.24 & 6.12797 \\ \hline 19 & 13.13394 & 12.08532 & 11.15812 & 10.33560 & 9.60 & 8.95012 & 8.36492 & 7.83929 & 7.36578 & 6.19823 \\ \hline 20 & 13.59033 & 12.46221 & 11.40992 & 1059401 & 9.81815 & 9.12855 & 8.51356 & 7.96333 & 7.46944 & 6.25933 \\ \hline \end{tabular}

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_2

Step: 3

blur-text-image_3

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

Petroleum Accounting: Principles, Procedures; And Issues

Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou

8th Edition

0940966328, 978-0940966321

More Books

Students also viewed these Accounting questions