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Please help! You've never done me wrong yet! 1A: 1B: 1C: Question 1 --/1 View Policies Current Attempt in Progress Kanye Company is evaluating the
Please help! You've never done me wrong yet!
1A:
1B:1C:
Question 1 --/1 View Policies Current Attempt in Progress Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $166,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $32,982. Click here to view PV table. What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.) Internal rate of return Question 2 --/ View Policies Current Attempt in Progress Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $17,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $3,500 annually for 9 years. Barney hopes to earn a return of 12% on such investments. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the retreading operation? (Round answer to 2 decimal places, e.g. 25.25.) Present value $ Should Barney Googal purchase the retreading machine? Barney Googal purchase the retreading machine. Question 3 --/1 View Policies Current Attempt in Progress Snyder Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $29,500; Year 2, $34,500; and Year 3, $43,500. Snyder requires a minimum rate of return of 10%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the maximum price Snyder should pay for this equipment? (Round answer to 2 decimal places, e.g. 25.25.) Maximum price $Step by Step Solution
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