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Tippy Toe Spa Company offers various services, such as facials, laser hair removal and microdermabrasion. Currently, the company is considering purchasing the following spa equipment:
Tippy Toe Spa Company offers various services, such as facials, laser hair removal and microdermabrasion. Currently, the company is considering purchasing the following spa equipment: Laser Hair Removal Machines Microdermabrasion Machines Facial Oxygen Units Cost per Machine $66,100 $30,100 $24,000 Annual Cash Inflow Annual Cash Outflow $125,300 $88,400 $213,700 $39,100 $198,100 $26,900 Required Rate of Return Useful Life Residual Value 12% 4 years $850 12% 4% 3 years 3 years 5830 50 Assume that each equipment's annual cash flow will occur for the period equal to its useful life. Do not enter dollar signs or commas in the input boxes. Use the present values tables in the textbook appendix. Use the negative sign for negative values. Round your answers to the nearest whole number. a) Determine the NPV of each piece of equipment. Laser Hair Removal Machine S Search T ad Determine the NPV of each piece of equipment. Laser Hair Removal Machine S Microdermabrasion Machine: S Facial Oxygen Unit S to For each piece of equipment, determine the maximum acceptable price using the NFV method Laser Hair Removal Machine: S Microdermabrasion Machine: 5 Facial Oxygen Unit: 5 Determine the payback period for each piece of equipment. Round your answers to 1 decimal place. Laser Hair Removal Machine: Microdermabrasion Machine: Years Years Facial Oxygen Unit Years
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