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Please help!! Your answer is partially correct. Try again. Novak Fashions needs to replace a beltloop attacher that currently costs the company $38,000 in annual
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Your answer is partially correct. Try again. Novak Fashions needs to replace a beltloop attacher that currently costs the company $38,000 in annual cash operating costs. This machine is of no use to another company, but it could be sold as scrap for $2,400. Managers have identified a potential replacement machine, Euromat's Model HD-435 The HD-435 is priced at $51,495 and would cost Novak Fashions $28,000 in annual cash operating costs. The machine has a useful life of 13 years, and it is not expected to have any salvage value at the end of that time. Click here to view the factor table (a Calculate the net present value of purchasing the HD 435, assuming Novak Fashions uses a 14% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to o decimal place, e.g. 58,971.) Net present value 7,509 (b) Calculate the internal rate of return on the HD-435 Internal rate of return (c) Calculate the payback period of the HD-435. (Round answer to 4 decimal places, e.g. 15.2515) Payback period (d) Calculate the accounting rate of return on the HD-435. (Round answer to 2 decimal places, eg, 11.25%.) 9095 years Accounting rate of return 38.84Step by Step Solution
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