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kati45 [8]
3 years ago
13

Interior​ Products, Inc. is evaluating the purchase of a new machine to use in its manufacturing process. The new machine would

cost $ 37 comma 000 and have a useful life of 5 years. At the end of the​ machine's life, it would have a residual value of $ 2 comma 100. Annual cost savings from the new machine would be $ 12 comma 000 per year for each of the 5 years of its life. Interior​ Products, Inc. has a minimum required rate of return of 18​% on all new projects. The net present value of the new machine would be closest​ toA $39,943. B.$52.943 C.$4,181 D.$1,238

Business
1 answer:
ZanzabumX [31]3 years ago
7 0

Answer:

According to Given Data

$1,444

According to attached question

C.$4,181

Explanation:

Options are inconsistent with the data provided.

Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

Ne t present value of the machine is $1,444

Options are inconsistent with the data provided.

Workings are made in an MS Excel file, which is attached with this answer.

Original Question is attached with this answer, please find it.

According to correct data

Ne t present value of the machine is $4,181

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Answer:

See explanation

Explanation:

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3 years ago
Becky asks her friend Maggie to walk her dog for her, and Maggie agrees. While out walking, the dog gets away from Maggie and ru
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Kalamazoo Corporation's cost formula for its manufacturing overhead is $45,700 per month plus $53 per machine-hour. For the mont
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Answer:

$371,650

Explanation:

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