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i have been using a key from a similar problem. i do not understand why my npv and other calculations are incorrect. Raleigh Research, a

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i have been using a key from a similar problem. i do not understand why my npv and other calculations are incorrect.
image text in transcribed
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Raleigh Research, a taxpaying entity, estimates that it can save $33,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testing machine at a cost of $140,000. No terminal disposal value is expected. Raleigh Research's required rate of return is 10%. Assume all cash flows occur at year-end except for initial Investment amounts. Raleigh Research uses straight-line depreciation. The income tax rate is 31% for all transactions that affect income taxes. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the regulaments Requirement 1. Calculate the following for the special purpose eye-testing machine: 6. Net present value (NPR) (Round Interim calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is -10420 Help me solve this Etext pages Get more help Clear all Check answer 135.000 - 10 13 500 140,000 17 500 15.000 22770 12075 Tapas wings Pro PROU Te Amo Annual penting cash savings 30.000 -5 30.000 Anmeldepreciation 5 13 500 13.500 34 ) - 8910 17500 Pret After the amount Acasa Annual depreciation 5 13500 8910 17500 12075 Annuity PV factor of Present Visus of -12, -10 Net Cash Innow Cash Flows 4.590 5495 5.335 225 5:125 Annuity PV factor at Present Value of -12%, n=10 Net Cash Inflow Cash Flows Ner Initial investment F10% 0=8 $ Present value of annuity of equal annual 22770 After tax cash flows from operations 5.650 $19.809 per yout 111 870 After-tax cash savings from depreciation por year 5 2,804 Ner present value b. After-tax operating cash After tax cash savings Total increase in after-tax Inflows from depreciation annual cash flows 24.390 (18.000)( 140,000) 121477.95 25,934 28942.375 (1401060 121478 28942 10420 1 Reference sting r-end Present Value of Annuity of $1.00 in Arrears Periods 2% 4% 6% 8% Period 1 0.980 0.962 0.943 0.926 Period 2 1.942 1.886 1.833 1.783 Period 3 2.884 2.775 2.673 2.577 Period 4 3.808 3.630 3.465 3.312 Period 5 4.713 4.452 4.212 3.993 Period 6 5,601 5.242 4.917 4.623 Period 7 6.472 6.002 5.582 5.206 Period 8 7.325 6.733 6.210 5.747 Period 9 8.162 7.435 6.802 6.247 Period 10 8.983 8.111 7.360 6.710 Period 11 9.787 8.760 7.887 7.139 Period 12 10.575 9.385 8.384 7536 Period 13 11 348 9.986 7.904 Period 14 12 106 10.563 9.295 8.244 Period 15 12 849 11.118 9.712 8.559 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6,814 7.103 7.367 7.606 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5938 6.194 6.424 6.628 6.811 14% 0.877 1.647 2.322 2.914 3.433 3 889 4.288 4639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5 342 5.468 5.575 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4303 4.494 4:656 4.793 4,911 5.008 5.092 20% 22% 24% 26% 0.833 0.820 0.806 0.794 1528 1.492 1.457 1.424 2.106 2.042 1.981 1.923 2 589 2.494 2.404 2.320 2.991 2.864 2.745 2.635 3.326 3.167 3.020 2.885 3.605 3.416 3242 3.083 3.837 3.619 3.421 3.241 4.031 3.786 3.566 3.366 4.192 3.923 3.682 3.465 4 327 4035 3.776 3.543 4,439 4.127 3.851 3.606 4533 4.203 3.912 3.656 4.611 4 265 3.962 3.695 4.675 43154001 3.726 8853 Print Done a. C. 1. Calculate the following for the special-purpose eye-testing machine: Net present value b. Payback period Internal rate of return d. Accrual accounting rate of return based on net initial investment e. Accrual accounting rate of return based on average investment 2. How would your computations in requirement 1 be affected if the special-purpose machine had a $8,000 terminal disposal value at the end of 8 years? Assume depreciation deductions are based on the $140,000 purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations. la negative net Print Done

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