FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

( n ) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 0 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

image text in transcribed

(n)

Periods

4%

5%

6%

7%

8%

9%

10%

11%

12%

15%

0

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

1

1.04000

1.05000

1.06000

1.07000

1.08000

1.09000

1.10000

1.11000

1.12000

1.15000

2

1.08160

1.10250

1.12360

1.14490

1.16640

1.18810

1.21000

1.23210

1.25440

1.32250

3

1.12486

1.15763

1.19102

1.22504

1.25971

1.29503

1.33100

1.36763

1.40493

1.52088

4

1.16986

1.21551

1.26248

1.31080

1.36049

1.41158

1.46410

1.51807

1.57352

1.74901

5

1.21665

1.27628

1.33823

1.40255

1.46933

1.53862

1.61051

1.68506

1.76234

2.01136

6

1.26532

1.34010

1.41852

1.50073

1.58687

1.67710

1.77156

1.87041

1.97382

2.31306

7

1.31593

1.40710

1.50363

1.60578

1.71382

1.82804

1.94872

2.07616

2.21068

2.66002

8

1.36857

1.47746

1.59385

1.71819

1.85093

1.99256

2.14359

2.30454

2.47596

3.05902

9

1.42331

1.55133

1.68948

1.83846

1.99900

2.17189

2.35795

2.55803

2.77308

3.51788

10

1.48024

1.62889

1.79085

1.96715

2.15892

2.36736

2.59374

2.83942

3.10585

4.04556

11

1.53945

1.71034

1.89830

2.10485

2.33164

2.58043

2.85312

3.15176

3.47855

4.65239

12

1.60103

1.79586

2.01220

2.25219

2.51817

2.81267

3.13843

3.49845

3.89598

5.35025

13

1.66507

1.88565

2.13293

2.40985

2.71962

3.06581

3.45227

3.88328

4.36349

6.15279

14

1.73168

1.97993

2.26090

2.57853

2.93719

3.34173

3.79750

4.31044

4.88711

7.07571

15

1.80094

2.07893

2.39656

2.75903

3.17217

3.64248

4.17725

4.78459

5.47357

8.13706

16

1.87298

2.18287

2.54035

2.95216

3.42594

3.97031

4.59497

5.31089

6.13039

9.35762

17

1.94790

2.29202

2.69277

3.15882

3.70002

4.32763

5.05447

5.89509

6.86604

10.76126

18

2.02582

2.40662

2.85434

3.37993

3.99602

4.71712

5.55992

6.54355

7.68997

12.37545

19

2.10685

2.52695

3.02560

3.61653

4.31570

5.14166

6.11591

7.26334

8.61276

14.23177

20

2.19112

2.65330

3.20714

3.86968

4.66096

5.60441

6.72750

8.06231

9.64629

16.36654

(n)

Payments

4%

5%

6%

7%

8%

9%

10%

11%

12%

15%

1

1.00000

1.00000

1.00000

1.0000

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

2

2.04000

2.05000

2.06000

2.0700

2.08000

2.09000

2.10000

2.11000

2.12000

2.15000

3

3.12160

3.15250

3.18360

3.2149

3.24640

3.27810

3.31000

3.34210

3.37440

3.47250

4

4.24646

4.31013

4.37462

4.4399

4.50611

4.57313

4.64100

4.70973

4.77933

4.99338

5

5.41632

5.52563

5.63709

5.7507

5.86660

5.98471

6.10510

6.22780

6.35285

6.74238

6

6.63298

6.80191

6.97532

7.1533

7.33592

7.52334

7.71561

7.91286

8.11519

8.75374

7

7.89829

8.14201

8.39384

8.6540

8.92280

9.20044

9.48717

9.78327

10.08901

11.06680

8

9.21423

9.54911

9.89747

10.2598

10.63663

11.02847

11.43589

11.85943

12.29969

13.72682

9

10.58280

11.02656

11.49132

11.9780

12.48756

13.02104

13.57948

14.16397

14.77566

16.78584

10

12.00611

12.57789

13.18079

13.8164

14.48656

15.19293

15.93743

16.72201

17.54874

20.30372

11

13.48635

14.20679

14.97164

15.7836

16.64549

17.56029

18.53117

19.56143

20.65458

24.34928

12

15.02581

15.91713

16.86994

17.8885

18.97713

20.14072

21.38428

22.71319

24.13313

29.00167

13

16.62684

17.71298

18.88214

20.1406

21.49530

22.95339

24.52271

26.21164

28.02911

34.35192

14

18.29191

19.59863

21.01507

22.5505

24.21492

26.01919

27.97498

30.09492

32.39260

40.50471

15

20.02359

21.57856

23.27597

25.1290

27.15211

29.36092

31.77248

34.40536

37.27972

47.58041

Question 1 Indigo 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 below. Machine A Machine B Original cost $77,300 $180,000 Estimated life 8 years 8 years Salvage value 0 0 Estimated annual cash inflows $20,200 $40,000 Estimated annual cash outflows $4,970 $9,860 Click here to view PV table. 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 negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers for present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Machine A Machine B Net present value Profitability index Which machine should be purchased? should be purchased

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

The Dynamics Of Church Finance

The Dynamics Of Church Finance

Authors: James D. Berkley

1st Edition

0801091055, 9780801091056

More Books

Students also viewed these Finance questions

Question

★★★★★
What volume of F2 gas, at 25oC and 1.00 atm, is produced when molten KF is electrolyzed by a current of 10.0 A for 2.00 h? What mass of potassium metal is produced? At which electrode does each...

Answered: 1 week ago

Question

★★★★★
When increasing our level of confidence from 95% to 99%, the interval: A. grows B. shrinks C. remains the same D. none of the above

Answered: 1 week ago

Question

★★★★★
63. The Plen-Tee OFood Company organizes and runs country fairs. For the Lonornament County Fair, Plen-Tee contracts with Les Fingers, a highly respected fireworks specialist, to stage a fireworks...

Answered: 1 week ago

Question

★★★★★
The medical director of a large emergency clinic faces a problem of providing treatment for patients who arrive at different rates during the day. There are four doctors available to treat patients...

Answered: 1 week ago

Question

★★★★★
( n ) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 0 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1 1.04000 1.05000 1.06000 1.07000 1.08000 1.09000 1.10000 1.11000...

Answered: 1 week ago

Question

★★★★★
Exercise 4.11.1: Evaluating summations. About Evaluate the following summations. (a) =-1 k2. (b) 26: (c) ? 3 3 -k=-3 (d) 3 3: k=0 (e) 20 (2 + 3k). (f) 22, 2 - (1.01)*

Answered: 1 week ago

Question

★★★★★
What element normally establishes initial communications to begin the transfer of C2 from previous BSA to a new BSA location? A. The quartering party. B. The host nation liaison team. C. The Theater...

Answered: 1 week ago

Question

★★★★★
A project team is identifying project risks for a bridge to be built across a river. The team needs to send out invitations for a risk workshop to better understand the risks involved Which...

Answered: 1 week ago

Question

★★★★★
What relationships can you see between the political dimensions of second-wave civilizations described and their cultural or religious aspects discussed in this chapter?

Answered: 1 week ago

Question

★★★★★
In the movie Sophie's Choice , a woman is forced to choose which one of her children to send to the gas chamber. If she does not decide, both will be killed. How would ethical formalism resolve this...

Answered: 1 week ago

Question

★★★★★
Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs...

Answered: 1 week ago

Previous Question Next Question