1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Natasha_Volkova [10]
3 years ago
9

HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every yea

r of its 5-year useful life. The machine will cost $211,980 and has no salvage value. The machine has a 14% internal rate of return. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided. Required: What are the annual cost savings promised by the machine? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Business
1 answer:
Alexus [3.1K]3 years ago
5 0

Answer:

Annual savings = 61,746.

Explanation:

The Net Present Value (NPV) is the difference between the present value (PV) of cash outflows  and PV of cash inflow

At the internal rate of return the PC of annual cash savings will be equal to the investment cost

Initial cost = 211980

PV = annual cash savings = A× (1- (1+r)^(-n)/ r

A=?  r-internal rate of return, 14%, n-number of years- 5

211980 = A  (1- (1.14)^(-5)/ 0.14

211,980 = A× 3.433080969

A= 211,980/3.43308

A= 61746.28619

Annual savings = 61,746.

You might be interested in
You had used an online service to apply for a credit card. As part of the process, you submitted your personal information such
ch4aika [34]

Answer:

b. Identity theft

Explanation:

It is the acquisition of another person's information such as Social Security Number , date of birth and employer information etc. for fraudulent act.

8 0
3 years ago
I lost my bestfriend. Omg I can't take it.​
DIA [1.3K]

Answer:

why tho

Explanation:

why th

6 0
2 years ago
Read 2 more answers
Hershey's decides to start using a compostable material in which to wrap their chocolate. Unfortunately, this material begins br
OLEGan [10]

Answer:No

Explanation: the company requested to the team to develop an alternative to improve the client's satisfaction and reduce loss

5 0
2 years ago
CII, Inc., invests $630,000 in a project expected to earn a 12% annual rate of return. The earnings will be reinvested in the pr
Gelneren [198K]

Answer:

$1,956,684

Explanation:

As the project has a expected annual return, we have to calculate future value of this investment to find how much money Cll, Inc. will have after 10 years to reinvest.

We know,

FV = PV × (1 + i)^{n}

Given,

Present Value, PV = $630,000

Annual rate of return, i = 12% = 0.12

Number of period, n = 10 years

Putting the value into the above formula, we can get,

FV = $630,000 × (1 + 0.12)^{10}

FV = $630,000 × 3.105848

FV = $1,956,684

$1,956,684 can be reinvested after the liquidation of 10 years.

8 0
3 years ago
Marigold Corp. purchased a truck at the beginning of 2020 for $109700. The truck is estimated to have a salvage value of $4200 a
jeka57 [31]

Answer:

the depreciation expense of the year 2020 is $18,870

Explanation:

The computation of the depreciation expense of the year 2020 is as follows:

= (Truck value - salvage value) ÷ (useful life) × (driven miles)

= ($109,700 - $4,200) ÷ (123,000 miles) × (22,000 miles)

= $18,870

Hence, the depreciation expense of the year 2020 is $18,870

6 0
3 years ago
Other questions:
  • _____ are examples of selling raw materials.
    6·2 answers
  • If the number of employed is 220,000, the labor force is 250,000, the number of discouraged workers is 15,000, and the number of
    13·1 answer
  • During the introduction stage of a product's life cycle, typical consumers are during the introduction stage of a product's life
    11·1 answer
  • Glastonbury Inc. began operations in April of this year. It makes all sales on account, subject to the following collection patt
    15·1 answer
  • On July 1, 1992, Denver Corp. purchased 3,000 shares of Eagle Co.'s 10,000 outstanding shares of common stock for $20 per share.
    12·1 answer
  • 1. HOW DO ETHICS AND MORALS INFLUENCE PERSONAL AND COMMUNITY VALUES?
    8·1 answer
  • if the federal reserve decreases the reserve rate from 10% to 8%, how does this affect the amount of money that would result bec
    12·1 answer
  • The income of consumers has decreased. You know that canned meat is an inferior good. What will happen to the equilibrium price
    14·1 answer
  • How might a manufacturer of automobile use a decision process to approach to better understand how consumers purchase these prod
    7·1 answer
  • Kindly watch this video
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!