Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help..no need for detail just answer only ent value factors are provided for use in this problem. esent Value $1 at 8% 0.9259 0.8573

please help..no need for detail just answer only image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
ent value factors are provided for use in this problem. esent Value $1 at 8% 0.9259 0.8573 0.7938 0.7350 Present Value of an Annuity of $1 at 8% 0.9259 1.7833 2.5771 3.3121 purchase a machine for $36,700 with a four year life and a $1,100 salvage value. Xavier requires an 8% nt. The expected year-end net cash flows are $11.700 in each of the four years. What is the machine's net Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows: End of Investment Year B 1 $8,100 $ 8,100 3 8,100 24,300 0 0 2 The present value factors of $1 each year at 15% are: 1 WN 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A Aid Save & E Sum Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on al investments. The company is considering two different investments. Each require an initial investment of $14.900 and will produce cash flows as follows: End of Year 1 2 3 Investment A B $9, 100 $ 9,100 0 9, 100 27,300 The present value factors of $1 each year at 15% are: 1 2 3 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is: Multiple Choice 8 Next A company is considering the purchase of new equipment for $69,000. The projected annual net cash flows are $27,800. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 9% return on investment The present value of an annuity of $1 for various periods follows: Period 1 2 3 Present value of an annuity of $1 at 9% 0.9174 1.7591 2.5313 What is the net present value of this machine assuming all cash flows occur at year-end? Multiple Choice $23.000 $3,800 Next

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Create the pie chart approach.

Answered: 1 week ago