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thanks in advance View Policies Current Attempt in Progress Pharoah Inc manufactures snowsuits Pharoah is considering purchasing a new sewing machine at a cost of
thanks in advance
View Policies Current Attempt in Progress Pharoah Inc manufactures snowsuits Pharoah is considering purchasing a new sewing machine at a cost of $245 million. Its disting machine was purchased Syears ago at a price of 518 million six months ago, Pharoah spent $55,000 to pit operational The existing sewing machine can be sold today for $239,855. The new sewing machine would require a one-time $85.000 training cost Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $389,000 2 400.900 3 411000 425.200 5 432.400 6 435,400 7 436.900 The new sewing machine would be deprecated according to the dedining balance method at a rate of 20% The salvage values expected to be $300,600 This new equiment would require maintenance costs of $94,400 at the end of the fifth year. The cost of capital is 0% Click here to view the factor table Use the represent value method to determine the following niet present value is the then enter with the number 45 or portes (45). Round present value answer to decimal process 125. Rr calculation purposes, se decimal placerat duplayed in the factor table provided) Calculate the return value Niet rent value 6 435,400 7 436.900 The new sewing machine would be depreciated according to the declining balance method a rate of 20%. The values expected to be $380.600 This new equipment would require maintenance costs of of$94.600 at the end of the father. The of capital is 9% Cocher the factor the Use the represent valou method to determine the following for rent are the sterwiththe -15 or oth Headset werden. For ocesas the factor tablet) Calete the presente Net presente Determine whether Phach should purchase the new machine to replace the ting machine Step by Step Solution
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