Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

IN FIN 301-Capital Budgeting Assignment 5 EXCEL PART: Submission format: Excel File WRITING PART: Submission format: Word Document 7 ABC Corporation has a machine that

image text in transcribed
IN FIN 301-Capital Budgeting Assignment 5 EXCEL PART: Submission format: Excel File WRITING PART: Submission format: Word Document 7 ABC Corporation has a machine that requires repairs or should be replaced. 8 ABC has evaluated the two options and calculated the cash flows resulting 9 from each option as follows: You have recently been hired by ABC corporation and your fir them decide which of these two options should be pursued.- capital budgeting and Time Value of Money concepts you haw analyze the solution and present it to your boss in three days 11 Option A: Repair the Machine Conduct the analysis and calculate Payback period for each op Pl and NPV for each option at three WACC points of 10 % , 12 % - Cash Flow $70,500.00 $18,500.00 $35,100.00 $18,500.00 $17,800.00 $12,700.00 12 Year Et Write a memo to your boss, explaining the results of your ana and include a table and a chart showing your analysis. ST 9T 18 61 Option B: Buy a new Machine 21 Year Note: WACC is the discount rate Cash Flow o $375,500.00 $55,300.00 2 $133,000.00 3 $123,800.00 25 92 00'006'82TS 5 $124,100.00 62 LE 32 Sheet1 Sheet2 Apeag IN FIN 301-Capital Budgeting Assignment 5 EXCEL PART: Submission format: Excel File WRITING PART: Submission format: Word Document 7 ABC Corporation has a machine that requires repairs or should be replaced. 8 ABC has evaluated the two options and calculated the cash flows resulting 9 from each option as follows: You have recently been hired by ABC corporation and your fir them decide which of these two options should be pursued.- capital budgeting and Time Value of Money concepts you haw analyze the solution and present it to your boss in three days 11 Option A: Repair the Machine Conduct the analysis and calculate Payback period for each op Pl and NPV for each option at three WACC points of 10 % , 12 % - Cash Flow $70,500.00 $18,500.00 $35,100.00 $18,500.00 $17,800.00 $12,700.00 12 Year Et Write a memo to your boss, explaining the results of your ana and include a table and a chart showing your analysis. ST 9T 18 61 Option B: Buy a new Machine 21 Year Note: WACC is the discount rate Cash Flow o $375,500.00 $55,300.00 2 $133,000.00 3 $123,800.00 25 92 00'006'82TS 5 $124,100.00 62 LE 32 Sheet1 Sheet2 Apeag

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions

Question

What is Accounting?

Answered: 1 week ago

Question

Define organisation chart

Answered: 1 week ago

Question

What are the advantages of planning ?

Answered: 1 week ago

Question

b. Why were these values considered important?

Answered: 1 week ago