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NEED HELP FILLING IN THE BLANKS IN THE BELOW SCREESHOT. FILL IN THE BLANKS. FAR LEFT COLUMN OPTIONS ARE - ANNUAL CASH OPERATING COST, CURRENT
NEED HELP FILLING IN THE BLANKS IN THE BELOW SCREESHOT. FILL IN THE BLANKS. FAR LEFT COLUMN OPTIONS ARE - ANNUAL CASH OPERATING COST, CURRENT BOOK VALUE, CURRENT SALVAGE VALUE, OVERHAUL NEEDED VALUE, PUCHASE PRICE NEW, SALVAGE VALUE IN 6 YEARS
Hardy Tire Company needs to overhaul its auto lift system or purchase a new one. The facts have been gathered, and they are as follows: (Click the icon to view the facts.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Which alternative is the most desirable with a current required rate of return of 18%? Show computations, and assume no taxes. Seleci ne formula to calculate the present value (PV) for the saivage value at the end of 6 years. Then, calculate tne PV of the saivage value at the end or o years for potn the current machine and the new machine. (use tactors to three decimal places, AM, ana round all currency calculations to the nearest whole dollar. Use a minus sign or parentheses to show cash outflow (costs) and for a negative net present value.) = PV of Salvage value at the end of 6 years PV of $1 at 18% salvage value Current machine $ 8,900 0.37 3,293 New machine 34.500 0.37 = $ 12.765 Using the table below, calculate the net present value (NPV) of overhauling the current auto lift system and the net present value of investing in a new auto lift system. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero. Use a minus sign or parentheses to show cash outflow (costs) and for a negative net present value.) NPV of Cash Flows Data Table Overhaul existing system Invest in new system Current Machine New Machine Purchase price, new 124,750 $ 169.800 Current book value 36,600 30,000 69,700 58.800 Overhaul needed now Annual cash operating costs Current salvage value Salvage value in 6 years Net present value 50,000 8.900 34,500 Choose from any list or enter any number in the input fields and then click Check Answer. Print Done part remaining CheckStep by Step Solution
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