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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
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: Cost per Machine Annual Cash Inflow Annual Cash Outflow Required Rate of Return Useful Life Residual Value Laser Hair Removal Machines Microdermabrasion Machines Facial Oxygen Units $68,000 $124,200 $90,300 12% 4 years $810 $31,400 $24,900 $214,500 $38,700 $197,600 $28,800 14% 5% 3 years $870 2 years $0 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: $ Microdermabrasion Machine: $ Facial Oxygen Unit: $ 1
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