Present Value UI Read the requirements. Requirement 2. How would your computations in requirement 1 be affected if the special-purpose machine had a $10,000 terminal disposal value at the end of years? Assume depreciation deductions are based on the $110,000 purchase cost and zero terminal disposal value using the straight-line method. Answer brie words without further calculations. increase NPV would Payback would because the disposal value results in an increase in the total present value of cash inflows. not change because the disposal value does not affect cash flows until the end of year 10. Choose from any list or enter any number in the input fields and then continue to the next question. 1 - 32 of 32 13 Type here to search Bi O . 5/ E R U City Hospital, a taxpaying entity, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special-purp machine at a cost of $110,000. No terminal disposal value is expected. City Hospital's required rate of return is 14%. Assume all cash flows oco for initial investment amounts. City Hospital uses straight-line depreciation. The income tax rate is 30% for all transactions that affect income tax Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. NPV would increase because the disposal value results in an increase in the total present value of cash inflows. Payback would not change because the disposal value does not affect cash flows until the end of year 10. IRR would increase because the disposal value results in an additional cash outflow. AARR would increase because the disposal value Choose from any list or enter any number in the input fields and then continue to the next question. 1 - 32 of 32 Type here to search ORI E ospital, a taxpaying entity, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special-purpose eye-testing ne at a cost of $110,000. No terminal disposal value is expected City Hospital's required rate of return is 14% Assume all cash flows occur at year-end exce al investment amounts. City Hospital uses straight-line! et income taxes. at Value of $1 table Present Value of Annuity of $1 tab does not affect average annual operating income, does not affect the net initial investment, he requirements results in a decrease in average annual operating income, would because the disposal value results in a decrease to the net initial investment, results in an increase in average annual operating income, ack would not change because the disposal value results in an increase in the total present value of cash inflows, ould increase because the disposal value results in an increase to the net initial investment, would increase because the disposal value increase e from any list or enter any number in the input fields and then continue to the next question. 1-32 of 32 Type here to search OBH 1:58 AM 5/24/202 E It can save $28,000 a year in cash operating costs for the next machine at a cost of $110,000. No terminal disposal value is expected. City Hospital's required rate of return is for initial investment amounts. City Hospital uses straight-line depreciation. The income tax rate is 30% for allt Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of A Read the requirements. NPV would e in the total present value Payback would decrease flows until the end of year IRR would increase not change nal cash outflow. because the disposal valie AARR Muld Choose from any list or enter any number in the input fields and then continue to the next question. 1 - 32 of 32 Type here to search 0