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melomori [17]
3 years ago
12

Baird Bros. Construction is considering the purchase of a machine at a cost of $125,000. The machine is expected to generate cas

h flows of $20,000 per year for 10 years and can be sold at the end of 10 years for $10,000. Interest is at 10%. Assume the machine purchase would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations.
What is the net present value of the cash flows?
Business
1 answer:
andre [41]3 years ago
4 0

Answer:

$1,747

Explanation:

Given:

Generate Cash flows = $20,000 per year

Salvage value = $10,000

Interest = 10% = 0.10

Computation:

Net present value = PV of cash inflows - PV of cash outflow

= [($20,000 X 6.1446) + ($10,000 X 0.3855)] - $125,000

= [$122,892 + 3855] - $125,000

= $1,747

PV factor (for salvage value)

(1+r)^{-n}\\(1+0.10)^{-10}\\0.3855

Inflow PV factor = 6.1446

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The correct answer is Data Inconsistency.

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3 years ago
Given these observed times (in minutes) for four elements of a job, determine the observed time (OT) for each element. Note: the
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Answer:

Element 1 = 4.17 Observed time

Element 2 = 1.77 Observed time

Element 3 = 3.33 Observed time

Element 4 = 2.8 Observed time

Explanation:

Calculation to determine the observed time (OT) for each element

Based on the information given we have 4 Element and 6 Cycle for Element 1,3 and 4 while Element 2 has 3 cycle

First step is sum up each element cycle i.e addition of cycle 1 to cycle 6

Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6

1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25

2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3

3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20

4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8

Now let find the Observed time by dividing the figure that was sum up for each of the element by the numbers of cycle that each element has.

OBSERVED TIME

Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6

1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25/6= 4.17 Observed time

2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3/3=1.77 Observed time

3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20/6= 3.33 Observed time

4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8/6=2.8 Observed time

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When Carolina is in the grocery store buying milk for her children, she picks up a tube of toothpaste at the same time. The toot
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A relatively inexpensive item that merits little shopping effort, is called Convenience product.

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Convenience product is that type of the product which can be purchased with the minimal efforts because it is cheap in value and can be purchased frequently.

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