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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer fumiture

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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer fumiture line. The equipment is expected to cost $404,880 and to have a six-year life and no salvage value. The equipment is expected to generate income of $16,439 and net cash flow of $87,581 in each year of its six-year life Santana requires an 9% return on all investments. (PV of S1. FV of \$1. PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with o minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number. Required: 1-. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment 1.c. Compute internal rate of return for this equipment. 2. If Santana requires imvestments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 9% internal rate of retum, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Compute the net present value for this equipment. Note: Negative values must be entered as a negative number. Santana Rey is consideping the purchase of equipment for Business Soliaions that would allow the company to add a new product to its computer furniture line. The equpment is expected to cost $404,880 and to have a sixyear life and no salvage value. The equipment is expected to generate income of $16,439 and net cash flow of $97,581 in each year of its socyear lite. Saitana requires an 9% return on all irvestments. BPV of S1. EV of S1. PVA of S1, and EVA of Sil Note: Use appropriate foctor(s) from the tables provided.) (Negstive net present values should be indicoted with a minus sign. Do not round Intermediate calculotions. Round your present value factor to 4 decimals and final anwwers to the neorest whole number. Required: 1-6. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment 1.c. Compute internal rate of return for thss equipenent 2. If Santana requlres investments to hove payback periods of four years or less. should the thest in this equipment? 3. If Santanarequires investments to have at least an 9 io intermal rate of retum, should she invest in this equipment? Complete this quatstion by entering your answers in the tabs below. Compute the pwbick period for this equipiment: Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment 6 expected to cost $404,880 and to have a six-year life and no salvage value. The equipment is expected to gerierate income of 516,439 and net cash flow of $87,581 in each year of its sixyear ife. Santatha requires an 9 9.5 return on all investments. (PV of S1. EV of S1. PVA of Si and EVA of S1) Note: Use opproprinte foctor(b) from the tables provided.) (Negotive net present values should be indicnted with a minus sign. Do not round intermediote calculations. Round your present volue factor to 4 decimols and final answers to the nearest whole number. Required: 1.a. Compute the payback period for this equipment 1-b. Compute the net present walue for this equipment. 1.e. Compute internal rate of retum tor this equipment. 2. if Santana requires investments to have payback penlods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 9W internal rate of retum, should she invest in this equipment? Complete this queation by entering your answers in the tabs below. Compute internal rate of teturni for thiv equipment. Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new procuct to is computen furniture line The equipment is expected to cost $404,880 and to have a sicyear lide and no salvage value. The equipment is expected to generate income of $16,439 and net cash flow of $87,581 in each year of its six-year life. 5 Santana requires an 9 9li retum on all investments. (PV of S1. EV of S1. PVA of S1, and EVA of S1] Note: Use oppropeiate foctor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate colculations. Round your present value foctor to 4 decimals and finol answers to the nearest whole number. Required: 1-o. Compute the paybacic period for this equipment 1-b. Compute the net present value for this equloment 1.c. Comptte internat rate of retum for this equipment 2. It Santana requires investments to have payback periods of fouryears or less, should she invest in this equipment? 3. II Santana iequires investments to have at leost an 95 intemal rate of return, should she imvest in this equipment? Complete this question by entering your answers in the tobs below. 2. If Santana requiros investments to nave payback peripda of four yeans or less, should she imest in this equipment? 2. If santaca tequires imvestments to have of least an 9% internal rate of teturn, should ahe invest in this equipmeot? Do netimast 3. I Sentana requiles invetments lo hare at ient an 9N.lernal ate of retum, should she inwest h this eguipment

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