Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

produce its products more efficiently than it is currently equipped to do. Estimates Question Marigold Corp. is considering purchasing one of two new processing machines.

image text in transcribed
produce its products more efficiently than it is currently equipped to do. Estimates Question Marigold Corp. is considering purchasing one of two new processing machines. Either machine would make it possible for the company regarding each machine are provided below: Machine A Machines Original cost $113,800 $267,500 Estimated the 10 years Salvage value Estimated annual cash intows $30,100 $60,000 Estimated annual cash outflows $7,400 $15,200 10 years -H (61) Marigold Corp. dd some further research and found one other possible machine that would produce the same type of production efficiencies. The information regarding Machine is below Machine Original cost 5253,400 Estimated life 10 years Salvage value $30,000 Estimated annual cash intows $45,400 Estimated annual cash outflows $9.900 Calculate the net present value and profitability Index for Machine C. Use an 8% discount rate. (Round present value factor calculations to decimal places, e.g. 1.25124 and the final answer to 2 decimal places c.9. 589.71. Enter negative amounts using either a negative sign preceding the number eg.-4.35 or parentheses e.o. (45.35).) Net present value Profitability Index

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

Recommended Textbook for

A Comprehensive Guide To Information Security Management And Audit

Authors: Rajkumar Banoth, Gugulothu Narsimha, Aruna Kranthi Godishala

1st Edition

1032344431, 978-1032344430

More Books

Students also viewed these Accounting questions