{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T08:01:31-04:00", "answer_date": "2024-06-06 08:01:31", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2350426", "url": "\/study-help\/questions\/the-canton-sundae-corporation-is-considering-the-replacement-of-an-2350426", "question_creation_date_js": "2024-06-06T08:01:31-04:00", "question_creation_date": "Jun 06, 2024 08:01 AM", "meta_title": "[Solved] The Canton Sundae Corporation is consider | SolutionInn", "meta_description": "Answer of - The Canton Sundae Corporation is considering the replacement of an existing machine. The new machine, called an X-tend | SolutionInn", "meta_keywords": "canton,sundae,corporation,replacement,existing,machine,new,called,x-tender,provide,sundaes,costs", "question_title_h1": "The Canton Sundae Corporation is considering the replacement of an existing machine. The new machine, called an X-tender, would provide better sundaes, but it costs", "question_title": "The Canton Sundae Corporation is considering the replacement of an existing machine.", "question_title_for_js_snippet": "The Canton Sundae Corporation is considering the replacement of an existing machine The new machine, called an X tender, would provide better sundaes, but it costs $120,000 The X tender requires $20,000 in additional net working capital, which will be recouped at the end of the project The machine's useful life is 10 years, after which it can be sold for a salvage value of $40,000 Straight line depreciation will be used and the machine will be depreciated to zero over the 10 year project The tax rate is 45 and the required return is 16 The machine is expected to increase sales minus costs by $35,000 per year What are NPV, PI, Payback Period, Discounted Payback Period, and IRR ", "question_description": "

The Canton Sundae Corporation is considering the replacement of an existing machine. The new machine, called an X-tender, would provide better sundaes, but it costs $120,000. The X-tender requires $20,000 in additional net working capital, which will be recouped at the end of the project. The machine's useful life is 10 years, after which it can be sold for a salvage value of $40,000. Straight-line depreciation will be used and the machine will be depreciated to zero over the 10-year project. The tax rate is 45% and the required return is 16%. The machine is expected to increase \"sales minus costs\" by $35,000 per year. What are NPV, PI, Payback Period, Discounted Payback Period, and IRR?<\/p>", "transcribed_text": "", "related_book": { "title": "Management And Cost Accounting", "isbn": "1292232668, 978-1292232669", "edition": "7th Edition", "authors": "Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/615d73d3ad813_2140.jpg", "uri": "\/textbooks\/management-and-cost-accounting-7th-edition-9781292232669", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CCZXQ7GZ", "uri": "\/textbooks\/avitopia-birds-of-bermuda-1st-edition-979-8854198998-331077", "name": "Avitopia Birds Of Bermuda", "edition": "1st Edition" }, "question_posted": "2024-06-06 08:01:31", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/1-compute-the-inventory-turnover-days-sales-in-inventory-and", "description": "1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Win's Companies for 2015. 2. Compute days' sales in receivables during 2015. 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