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Manny Petty Spa Company offers various services, such as facials, laser hair removal and microdermabrasion. Currently, the company is considering purchasing the following spa equipment:
Manny Petty Spa Company offers various services, such as facials, laser hair removal and microdermabrasion. Currently, the company is considering purchasing the following spa equipment: Assume that each equipment's annual cash flow will occur for the period equal to its useful life. Do not enter dollar signs or commas in the input boxes. Use the present values tables in the textbook appendix. Use the negative sign for negative values. Round your answer to 2 decimal places. a) Determine the NPV of each piece of equipment. Laser Hair Removal Machine: $_____ Microdermabrasion Machine: $_____ Facial Oxygen Unit: $_____ b) For each piece of equipment, determine the maximum acceptable price using the NPV method. Laser Hair Removal Machine: $_____ Microdermabrasion Machine: $_____ Facial Oxygen Unit: $_____ c) In what year will the initial investment be recovered? Use the cumulative payback method. Laser Hair Removal Machine: Year Microdermabrasion Machine: Year____ Facial Oxygen Unit: Year_____
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