Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with the question fast Flounder Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $360,000 and has

please help with the question fast
image text in transcribed
Flounder Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $360,000 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annuat cash flows of $63,000. Management also believes that the new bottling machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Click here to view PV tables: How much would the reduction in downtime have to be worth in order for the project to be acceptable? Flounder's discount rate is 9% (Use the above table). (Round foctor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, es. 5.275.) Reduction in downtime would have to have a present value $

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

Cost Benefit Analysis With Reference To Environment And Ecology

Authors: James H. Meisel, K. Puttaswamaiah

1st Edition

1138521329, 978-1138521322

More Books

Students also viewed these Accounting questions