Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The management of Penfold Corporation is considering the purchase of a machine that would cost $330,000, would last for 7 years, and would have no

image text in transcribed
image text in transcribed
image text in transcribed
The management of Penfold Corporation is considering the purchase of a machine that would cost $330,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $63,000 per year. The company requires a minimum pretax return of 11% on all investment projects. Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.): (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice O $(8,144) $(21,094) oooo $(45,194) O $(33,144) XHIBIT 138-1 esent Value of St "eriods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 8 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0 361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 100 .676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 130 .601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.008 0.078 0.060 0.062 0.055 0.049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0057 0.051 0.045 0.040 0.035 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 17 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.00 0.069 0.060 0,052 0.045 0.039 0.034 0.030 0.025 0.023 18 0.494 0.416 0.350 0.206 0.250 0.212 0.180 0.153 0.130 0.111 0.005 0.001 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 19 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 20 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.025 0.022 0.019 0016 0.014 0.012 21 0.439 0.359 0.294 0 242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 23 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0015 0.012 0.010 0.000 0.007 0.006 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.002 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0,015 0.013 0.010 0.008 0.002 0.006 0.005 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0016 0.013 0010 0.009 0.007 0.006 0.005 0.004 26 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 27 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0.196 0.150 0.116 0.000 0.060 0,054 0.042 0.033 0.026 0.020 0.016 0,012 0010 0.008 0.005 0.005 0.004 0.003 0.002 0.002 29 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 12-2 Present Value of an Annuity of $1 in Arrears: - Periods 4% 5% 6% 7% 8% 9% 10% 11% -12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0 962 0.952 0943 0.935 0.926 0917 0.909 0.901 0.893 0 885 0 877 0.870 0362 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 1886 1.859 1.833 1.808 1.783 1.759 1736 1.713 1.690 1663 1647 1626 1605 1585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 3 2.775 2.723 2.673 2624 2.577 2531 2487 2444 2.402 2361 2322 2283 2246 22 10 2 174 2.140 2.106 2074 2042 2011 1981 1952 4 3630 3.546 3.465 3 387 3312 3240 3.170 3.102 3.037 2 974 2 914 2.855 2799 2.743 2.690 2.639 2.589 2.540 2.494 2448 2404 2 362 5 4.452 4.3294212 4.100 3.993 3.890 3.791 3696 3.605 3517 3.433 3.352 3274 3199 3.127 3.058 2.991 2.926 2864 2.803 2.745 2689 6 8 5242 5.076 4917 4.767 4.623 4.486 4 355 4 231 4.111 3998 3 889 3784 3685 3589 3.498 3410 3.326 3.245 3.167 2092 3020 2.951 6.002 5.786 5.582 5.389 5.206 5033 4868 4.712 4.564 4.423 4.288 4.160 4039 3.922 3.812 3.706 3.605 3.508 3.415 3327 3.242 3.161 6733 6.463 6.210 5.971 5.747 5.535 5.335 5 146 496 4.799 4639 4487 4 344 4.207 4.078 3.954 3.837 3.726 3619 3.518 3.421 3329 .435 7.108 6.802 6515 6.247 5995 5.759 5 537 5328 5.132 4946 4772 4.607 4.451 4.303 4.163 4.031 3.905 3785 3.673 3.566 3.463 R111 7.722 7 350 7024 6.710 6.418 6.145 5. 889 5650 5.426 5216 5 019 4.833 4.659 4.494 4.339 4.192 4054 3923 3.799 3682 3.571 9 7 10 11 12 13 14 15 8.760 8.306 7.887 7.499 7.139 6805 6.495 6.207 5.938 5.687 5.453 5 234 5029 4836 4656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 9 3858.863 8.384 7.943 7.536 7.161 6814 6.492 6.194 5 918 5.660 5421 5197 4988 4.793 4611 4.439 4.278 4.127 3985 3851 3.725 9 986 9.394 8.853 8.358 7.904 7487 7.103 6.750 6.424 6.122 5842 5583 5 342 5.118 4.910 4.715 4.533 4.362 4 203 4.053 3912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7 367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4265 4108 3.962 3.824 11.118 10 380 9.712 9.108 8.559 8061 7.606 7,191 6,811 6.462 6.142 5.847 5575 5 324 5.092 4.876 4.675 4.489 4315 4 153 4001 3859 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6,604 6.265 5 954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 12 166 11 274 10.477 9.763 9.122 8544 8022 7549 7.120 6.729 6 373 6047 5.749 5.475 5.222 4.990 4.775 4576 4391 4219 4059 3.910 12.559 11.690 10 828 10.0599372 8.756 8.201 7.702 7.250 6 R40 6.467 6. 128 5.818 5.534 5.273 5.033 4.812 4008 4.419 4.243 4080 3.928 13 134 12 ORS 11.158 10.336 9.604 8950 8.365 7839 7366 6 938 6.550 6 198 5877 5.584 5 316 5070 4.843 4635 4 442 4.263 4,097 3942 13.590 12.462 11470 10.594 9.818 9.129 8.514 7.963 7.469 7025 6.623 6 259 5.929 5.628 5.353 5.101 4870 4657 4.460 4.279 4.110 3.954 16 17 18 20 21 22 23 24 25 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14.451 13 163 12.042 11.061 10. 2019.442 87728.176 7.645 7.170 6.743 6 359 6 011 5.696 5.410 5.149 4.909 4.590 4.488 4302 4.130 3970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6 399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4,713 4.507 4.318 4.143 3.981 15.622 14.094 12 783 11.654 10.675 9.8239.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4323 4.147 3.985 26 27 28 29 30 40 15 983 14.375 13 003 11.826 10 810 9.929 9 161 8.488 7896 7.372 6.906 6.491 6 118 5783 5.480 5 206 4 956 4.728 4.520 4 328 4.151 3.988 16 330 14.643 13.211 11.987 10 935 10.0279 237 8.548 7943 7.409 6.935 6514 6 136 5.798 5.492 5.215 4.964 4.734 4.524 4332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4,159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.745 4.534 4339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4,544 4.347 4.166 3.999

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

Effective Auditing For Corporates Ensuring That All The Risks Are Covered

Authors: Bloomsbury, Joe Oringel

1st Edition

1849300445, 978-1849300445

More Books

Students also viewed these Accounting questions

Question

What is the purpose of the AICPAs Code of Professional Conduct?

Answered: 1 week ago

Question

Understanding Groups

Answered: 1 week ago