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a_sh-v [17]
3 years ago
8

Joanette, Inc., is considering the purchase of a machine that would cost $620,000 and would last for 10 years, at the end of whi

ch, the machine would have a salvage value of $62,000. The machine would reduce labor and other costs by $122,000 per year. Additional working capital of $8,000 would be needed immediately, all of which would be recovered at the end of 10 years. The company requires a minimum pretax return of 16% on all investment projects.
Required: Determine the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Business
1 answer:
daser333 [38]3 years ago
3 0

Answer:

$22,484

Explanation:

The computation of net present value of the project is shown below:-

Net present value = Present value of cash inflow - Present value of cash outflow

Net present value = Other cost reduced amount × PVIFA factor at 16% for 10 years + Additional working capital × Discount factor for 10th year + Salvage value × Discount factor for 10th year -  Salvage value + Discount factor for 10th year × 1)

= $122,000 × 4.83322 + $8,000 × 0.2266 + $62,000 × 0.2266 - $62,000 + $8,000 × 1)

= $589,654 + $15,862 - $628,000

= $22,484

Therefore for computing the net present value we simply applied the above formula.

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Answer:

19%

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Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probabil
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Answer:

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3 years ago
Laird is an employee of Motor Parts, an auto parts store. On the orders of his employer, he switches trademarks on parts that co
ololo11 [35]

Answer:Forgery

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8 0
3 years ago
Select the best description of the incentive for each of the following participants based on the current U.S. health care system
fiasKO [112]

Answer:

Select the best description of the incentive for each of the following participants based on the current U.S. health-care system:

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Explanation:

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Savings Goals
romanna [79]

Answer:

I am sorry fam this won't be an answer to your question, but I figured out how to see the answers on brainly for ya'll that don't have premium. You just need to right click on the page of your question and then click on "view page source" for me the shortcut is ctrl+ U. I don't know about yall's. when you do that it will open up a weird looking page then you want to scroll down, what you wanna focus on are the black letters, the others will be colored red or blue or whatever just focus on the black letters. It just gonna show you the answer and the comments too. Your welcome pudgy boi.

Explanation:

Sshheeeeeeshh

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