Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please if you can do both. its a request furrent Attempt in Progress TLC Corp. is considering purchasing one of two new diagnostic machines. Either
please if you can do both. its a request
furrent Attempt in Progress TLC Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently is not equipped to do. Estimates for each machine are as follows: Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 10% discount rate. (If the net present value is negative, use either a negative sign preceding the number es. 45 or parentheses es. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.8.1.25124 and final answers to 0 decimal places, es. 5,275. Round profitability index answers to 3 decimal places, es. 12.521.) Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 10% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg. 45 or parentheses eg. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answers to O decimal places, eg. 5.275. Round profitability index answers to 3 decimal places, es. 12.521.) Which machine should be purchased? Kendra Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computeraided designand manufacturing machine for $432,400. The company believes that with this new machine it will improve productivity and increase quality, resulting in a $102,600 increase in net annual cash flows for the next five years. Management requires a 8% rate of return on all new investments. Click here to view PV table. Calculate the internal rate of return on this new machine, (Round answer to 0 decimal ploces, e.g. 10\%. For calculation purposes, use 5 . decimal ploces as displayed in the factor table provided, e.g. 1.52124.) Internal rate of return Should management accept the investment Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started