Net Annual Cash Inflows = $1600000 - $1000000 = $600000
NPV = PV of Cash Flows - Investment
PV annuity factor @12% for 5 years = 3.6048
NPV = $600000 x 3.6048 - $700000 = $1462880
Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially...
Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $800,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses $1,000,000 $1,300,000 1,300,000 1,000,000 1,300,000 1,000,000 1,300,000 1,000,000 1,000,000 1,300,000 Required: Compute the NC equipment's ARR. Enter as a percent and round your answer to...
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 123.1 and Exhibit 128.2 as you complete the requirement below. Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $ 730,671. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year...
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $900,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $1,400,000 $1,000,000 2 1,400,000 1,000,000 3 1,400,000 1,000,000 4 1,400,000 1,000,000 5...
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 123.1 and Exhibit 120.2 as you complete the requirement below. Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $806,784. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash...
Basic Concepts Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,100,000. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses $2,940,000 2,940,000 2,940,000 2,940,000 $2,310,000 2,310,000 2,310,000 2,310,000 2,310,000 2,940,000 The present value tables provided in Exhibit 19B.1 and Exhibit 190.2 must be used...
Basic Concepts Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,200,000. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses 1 $2,960,000 $2,300,000 2 2,960,000 2,300,000 3 2,960,000 2,300,000 4 2,960,000 2,300,000 5 2,960,000 2,300,000 The present value tables provided in Exhibit 19B.1 and...
Basic Concepts Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,266,667. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses 1 $2,950,000 $2,270,000 2 2,950,000 2,270,000 3 2,950,000 2,270,000 4 2,950,000 2,270,000 5 2,950,000 2,270,000 The present value tables provided in Exhibit 19B.1 and...
Basic Concepts Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,300,000. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses 1 $2,980,000 $2,290,000 2 2,980,000 2,290,000 3 2,980,000 2,290,000 4 2,980,000 2,290,000 5 2,980,000 2,290,000 The present value tables provided in Exhibit 19B.1 and...
Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,400,000. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses 1 $2,980,000 $2,260,000 2 2,980,000 2,260,000 3 2,980,000 2,260,000 4 2,980,000 2,260,000 5 2,980,000 2,260,000 The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2...
Basic Concepts Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,266,667. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Cash Expenses Cash Revenues Year $2,960,000 $2,280,000 1 2,960,000 2,280,000 2,960,000 2,280,000 2,960,000 2,280,000 5 2,960,000 2,280,000 The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must...