UMEWUIK. HV #19- Chapter 11B Save core: 0 of 12 pts 8 of 53 completo HW Score: 54 62213 of 39 pts 11-17 (similar to) Ostalo Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new hd widget de replace the citing gninger Testindo was purchased you go at an installed cost of $60,300 was being depreciated under MACRS using a 5-your recovery period. The existing grinder is expected to solfo of 5 more years the windows $108.700 and regugs $4,600 in itallation cost 5-year usablete and would be depreciated under MACRS a year recovery period Lombard can currently of the existing ginder for 300 200 without incuring any removal orden cost. To support the assed business retulting from purchase of the wonder accounts receivable would increase by $30,000 inventories by $20.500, and accounts payable by $68.000. Alle end of your thonistine gider would now a mantel value of zero the now grid would be sold to 520.000 after removal and doar costs and before taxes. The fomis subject 40% fax rate. The stated caringsbordenones and a the 5 years for both the now and the existing Grinder we shown in the flowing table Table contain the applicable MACRS depreciationer a. Calculate the intrinvestment sociod with the replacement of the existing grinder by the new che b. Det the operating cash infows associated with the proposed grinder replacement. (Note: Be sure to considered on a c. Detamine the terminal cash flow expected at the end of year from the proposed grinderrocement 8. Depict on a timeline the relevant cash flows associated with the proposed replacement decision Data Table 2. Calculate the initial investment imod with replacement of the old machine by the new one Calculate the info wwe below. Rourd to the neare doar (Click on the other in order to copy the content of the We a spread Costwo Earnings before Insation cons depreciation interest and taxes Total cost of now Year New grinder Existing prinder 1 543700 33700 2500 Enter y number in the folds and then chok CheckAnswer 13,700 21.500 3700 25700 17.500 emaining 14 Don 1211 PM Homework: HW #19- Chapter 11B Saw core: 0 of 12 pts 5 of 5 (3 completely HW Score: 54.62%, 213 of 39 -11-17 (similar to) Question Help Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder to rolace the existing ginder. The sing grinder was purchased 2 years ago at an installed cost of $80, 300, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a blese of more years. The new grinder costs $18.700 and requires $4,600 in installation costs, it has a 5-year usable de and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing and for 569 200 without incurring any removal or cleanup costs. To support the increased business resulting from purchase of the new grinder accounts rouvable would increase by $39,600, inventories by $29.500 and accounts payable by $50.000. At the end of 5 years the existing grinder would have a market value of or the new grinder would be sold to not $28.000 after removal and deanup costs and before taxes. The rm is subject 40 tax rate The estimated earnings before depreciation Interest and the over the 5 years for both the new and the existing onder are shown in the following table Table contain the applicatie MACRS decreciation percentages a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows and with the proposed grinder replacement (Noe Be sur c. Determine the terminal cash flow expected at the end of your from the proposed grinder replacement Date Table d. Depidon a time in the relevant cash flows asociated with the proposed grinder replacement decision a. Calculate the initial investments with replacement of the old machine by the new one. Recovery year 3 years 5 years 7 years 10 years Calculate the rattal reshment below (Round to the nearest dollar) 33 205 109 45% 25% 18% Costa 15% 19% ting 14 Installations 7 12 120 95 Total cost of new asset 9 03 Enter any number in the editals and then click Check Antwer 6 10 11 romaining 14 part UMEWUIK. HV #19- Chapter 11B Save core: 0 of 12 pts 8 of 53 completo HW Score: 54 62213 of 39 pts 11-17 (similar to) Ostalo Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new hd widget de replace the citing gninger Testindo was purchased you go at an installed cost of $60,300 was being depreciated under MACRS using a 5-your recovery period. The existing grinder is expected to solfo of 5 more years the windows $108.700 and regugs $4,600 in itallation cost 5-year usablete and would be depreciated under MACRS a year recovery period Lombard can currently of the existing ginder for 300 200 without incuring any removal orden cost. To support the assed business retulting from purchase of the wonder accounts receivable would increase by $30,000 inventories by $20.500, and accounts payable by $68.000. Alle end of your thonistine gider would now a mantel value of zero the now grid would be sold to 520.000 after removal and doar costs and before taxes. The fomis subject 40% fax rate. The stated caringsbordenones and a the 5 years for both the now and the existing Grinder we shown in the flowing table Table contain the applicable MACRS depreciationer a. Calculate the intrinvestment sociod with the replacement of the existing grinder by the new che b. Det the operating cash infows associated with the proposed grinder replacement. (Note: Be sure to considered on a c. Detamine the terminal cash flow expected at the end of year from the proposed grinderrocement 8. Depict on a timeline the relevant cash flows associated with the proposed replacement decision Data Table 2. Calculate the initial investment imod with replacement of the old machine by the new one Calculate the info wwe below. Rourd to the neare doar (Click on the other in order to copy the content of the We a spread Costwo Earnings before Insation cons depreciation interest and taxes Total cost of now Year New grinder Existing prinder 1 543700 33700 2500 Enter y number in the folds and then chok CheckAnswer 13,700 21.500 3700 25700 17.500 emaining 14 Don 1211 PM Homework: HW #19- Chapter 11B Saw core: 0 of 12 pts 5 of 5 (3 completely HW Score: 54.62%, 213 of 39 -11-17 (similar to) Question Help Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder to rolace the existing ginder. The sing grinder was purchased 2 years ago at an installed cost of $80, 300, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a blese of more years. The new grinder costs $18.700 and requires $4,600 in installation costs, it has a 5-year usable de and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing and for 569 200 without incurring any removal or cleanup costs. To support the increased business resulting from purchase of the new grinder accounts rouvable would increase by $39,600, inventories by $29.500 and accounts payable by $50.000. At the end of 5 years the existing grinder would have a market value of or the new grinder would be sold to not $28.000 after removal and deanup costs and before taxes. The rm is subject 40 tax rate The estimated earnings before depreciation Interest and the over the 5 years for both the new and the existing onder are shown in the following table Table contain the applicatie MACRS decreciation percentages a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows and with the proposed grinder replacement (Noe Be sur c. Determine the terminal cash flow expected at the end of your from the proposed grinder replacement Date Table d. Depidon a time in the relevant cash flows asociated with the proposed grinder replacement decision a. Calculate the initial investments with replacement of the old machine by the new one. Recovery year 3 years 5 years 7 years 10 years Calculate the rattal reshment below (Round to the nearest dollar) 33 205 109 45% 25% 18% Costa 15% 19% ting 14 Installations 7 12 120 95 Total cost of new asset 9 03 Enter any number in the editals and then click Check Antwer 6 10 11 romaining 14 part