Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do question 52 by hand Questions (50-55): Montreal Construction needs to replace one of their heavy machines. They are considering buying either Mach X

please do question 52 by hand
image text in transcribed
Questions (50-55): Montreal Construction needs to replace one of their heavy machines. They are considering buying either Mach X or Mach Y, which have the following data: The Accounting Department of Montreal Construction reveals that a loan must be secured to purchase any machine. The loan data are as follows: The-lean payments will be made annually with 10% interest. Montreal Construction assumes MARR 12\%. Using the Net Present Worth (NPW) analysis, answer the following questions: (50) The analysis period if you are going to use NPW is close to: a) 12 years b) 18 years c) 21 years d) 24 years (51) Theinterest rate that you are going to use in the calculation is: a) 12% b) 10% c) 15% d) 25% (52) The NPW for Mach X, using only 8 years cash flow, is close top: a) $60,105 b) $61,810 c) $60,485 d) 562.500 (53) The NPW for Mach Y, using only 6 years cash flow, is close to: 2,814 a) $40,082 b) $45,506 (c) 541,088 d) $38,350 (54) The NPW for Mach Y, using the analysis period, is close to: 4a) $75286 b) $70,513 c) $74,255 d) $71,919 (55) Recommend which machine to purchase: a) Mach X b) Mach Y c) Both d) None

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_2

Step: 3

blur-text-image_3

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

Accounting Information Systems

Authors: George H. Bodnar, William S. Hopwood

8th Edition

0130861774, 9780130861771

More Books

Students also viewed these Accounting questions

Question

Who will receive the final evaluation?

Answered: 1 week ago