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Please if someone can solve these 2 quick questions, thank you alot for your help. Will Up Vote and leave a positive review.. Daniel's Theme
Please if someone can solve these 2 quick questions, thank you alot for your help. Will Up Vote and leave a positive review..
Daniel's Theme Park is a family favorite destination. To keep up with other theme parks, Daniel is thinking of investing in a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $90,000. The equipment will have an initial cost of $400,000 and have a 5-year life. The salvage value of the equipment is estimated to be $75,000. If the hurdle rate is 11%, what is the approximate net present value? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice Positive $75,000 o Negative $22,857 o Positive $400,000 o Zero o Hawk Sporting Goods is a manufacturer of falconry equipment. Hawk is analyzing the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $225,000. The equipment will have an initial cost of $932,000 and have a 6-year life. There is no salvage value for the equipment. If the hurdle rate is 10%, what is the approximate net present value? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice $979,942 $47,942 oooo $310,667 $932,000Step by Step Solution
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