Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help with c and d please:) c Capital Budg Name 3 4 7 10 11 12 13 14 19 21 Corn mggy, Inc. produces and
help with c and d please:)
c Capital Budg Name 3 4 7 10 11 12 13 14 19 21 Corn mggy, Inc. produces and sells corn dogs. corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants Will cost S 160,000. In addition, Austin estimates that the new machine Will increase the company's annual net cash inflows by $53,000. The machine will have useful life and no salvage value. Instructio ns (a) (b) (c) (d) Calculate the cash payback period. Calculate the accounting rate ofreturn. Calculate the machine's net present value assuming the cost Ofeapital is 10%. Calculate thc machine's internal rate Of returns 4 53000 53000 53000 22 'b) 24 Cash flow : period 3.018867925 160000/16-10000 53000-10000=43000 160000/2-80000 43000/80000-53.80/0 160000 16 53000 53000 53000
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