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this is my third time askinh for help on this question. i need the PV of the intangible benefits i just reuploaded them you have
this is my third time askinh for help on this question. i need the PV of the intangible benefits
i just reuploaded them you have to zoom in please and thank you
Problem 12-4A (Video) Jane's Auto Care is considering the purchase of a new tow truck. The garage doesn't currently have a tow truck, and the $59,970 price tag for a new truck would represent a major expenditure Jane Austen, owner of the garage, has compiled the estimates shown below in trying to determine whether the tow truck should be purchased. Initial cost $59.970 Estimated useful life 8 years Net annual cash flows from towing $8,020 Overhaul costs (end of year 4) $6,000 Salvage value $12,000 Jane's good friend, Rick Ryan, stopped by. He is trying to convince Jane that the tow truck will have other benefits that Jane hasn't even considered. First, he says, cars that need towing need to be fixed. Thus, when Jane tows them to her facility, her repair revenues will increase. Second, he notes that the tow truck could have a plow mounted on it, thus saving Jane the cost of plowing her parking lot. Rick will give her a used plow blade for free if jane wil plow Rick's driveway.) Third, he notes that the truck will generate goodwill, people who are rescued by Jane's tow truck will feel grateful and might be more inclined to use her service station in the future or buy gas there. Fourth, the tow truck will have "Jane's Auto Care on its doors, hood, and back tailgate-a form of free advertising wherever the tow truck goes. Rick estimates that, at a minimum, these benefits would be worth the following Additional annual net cash flows from repair work $3,010 Annual savings from plowing 740 Additional annual net cash flows from customer goodwill 1,010 Additional anual net cash flows resulting from free advertising 740 The company's cost of capital is 9% Click here to view. Pytable Your answer is correct NERTE Calculate the net present value, Ignoring the additional benefits described by Rick. (If the net present value is negative, use alther a negative sign preceding the number .g. -45 or parentheses 9. (45). Round answer to o decimal places, ... 125. For calculation purposes, uses decimal places as displayed in the factor table provided.) Net present value -13808.88 Should the tow truck be purchased? The tow truck should not be purchased LINK TO TEXT LINK TO TEXT VIDEO SIMILAR PROBLEM Your answer is correct. Calculate the net present value incorporating the additional benefits suggested by Rick. (If the net present value is negative, use either a negative sign preceding the number .. 45 or parentheses .. (45). Round answer to o decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value 16632.63 Should the tow truck be purchased? should The tow truck be purchased CALCULATOR FULL SCREEN RACK NEXT MESSAGE HY INSTRUCTOR (45). Round answer to decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value 16632.63 Should the tow truck be purchased? should The tow truck be purchased URN TO TEXT LINK TO TEXT VIDEO: SHILAR PROBLEM C] your answer is incorrect. Try again Suppose Rick has been overly optimistke in his assessment of the value of the additional benefits. At a minimum, how much would the additional benefits have to be worth in order for the project to be accepted (Round answer to o decimal places, eg. 125.) Present value of the intangible benefits 6022.44 Problem 12-4A (Video) Jane's Auto Care is considering the purchase of a new tow truck. The garage doesn't currently have a tow truck, and the $59,970 price tag for a new truck would represent a major expenditure. Jane Austen, owner of the garage, has compiled the estimates shown below in trying to determine whether the tow truck should be purchased Initial cost $59,970 Estimated user life 8 years Net annual cash flows from towing $8,020 Overhaul costs (end of year 4) Salvage value $12,000 16.000 Jane's good friend, Rick Ryan, Mopped by. He is trying to convince Jane that the tow truck will have other benefits that ane hasn't even considered. First, he says, cars that need towing need to be fred. Thus, when Jane tows them to her facility, her repair reveres will increase. Second, le notes that the tow truck could have a plow mounted on it, thus saving lane the cost of plowing her parking lot. (Rick will give her a used plow blade for free Jane Willow Rick's driveway.) Third, he notes that the truck wil generate goodwill people who are rescued by Jane's tow truck will feel grateful and might be more inclined to use her service station in the future or buy as there. Fourth, the tow truck will have Jane's Auto Care on its doors, hood, and back tailgate-a form of free advertising wherever the tow trucks Rock estimates that, ata minimum, these benefits would be worth the following Additional annual net cash flows from repair work $3,010 Annual savings from plowing 740 Additional annual net cash flows from customer "goodwill Additional annual net cash flows resulting from free advertising 740 1,010 The company's cost of capital is 9% Click here to view PV table CALCULATOR MESSAGE WY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Your answer is correct. Calculate the net present value, ignoring the additional benefits described by Rick (Ir the net present value is negative, use either a negative sign preceding the number eg.-45 or parentheses a.s. (45). Round answer to o decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value -13808.88 Should the tow truck be purchased? should not The tow truck be purchased LINE TO TEN LINK TO TEXT Your answer is correct. Calculate the net present value, incorporating the additional benefits suggested by Rick (Ir the net present value is negative use alther a negative sin preceding the numbers.-45 or parenthesese.. (45) Hound answer to o decimal places, e... 125. For calculation purposes, se decimal places as displayed in the factor table provided) Net present value 16632.63 Should the tow truck be purchased Version 2 CALCULATOR HEASE HY INSTRUCTOR PULLSCREEN PRINTER VERSION Calculate me ner present we, Incorporating the ni Dennis suggested by KK. (ar mener present Valve negative, use evner a negative sin preceding the number ... -45 ar parentesese.g. (45). Round answer to decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value 16632.63 Should the tow truck be purchased? should The tow truck be purchased LINK TO TERT LINK TO TEXT VIDEO SORTLAR PROBLEM Your answer is incorrect. Try again. Suppose Rick has been overly optimistic in his assessment of the value of the additional benefits. At a minimum, how much would the additional benefits have to be worth in order for the project to be accepted? (Round answer to 0 decimal places, e.g. 125.) Present value of the intangible benefits 6022.44 Click if you would like to show Work for this questions Open Show Work Step by Step Solution
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