| Payback period | Machine A | Machine B | ||
| Time | Amount | Cumulative | Amount | Cumulative |
| - | (49,000.00) | (49,000.00) | (62,000.00) | (62,000.00) |
| 1.00 | 6,000.00 | (43,000.00) | 7,000.00 | (55,000.00) |
| 2.00 | 8,000.00 | (35,000.00) | 4,000.00 | (51,000.00) |
| 3.00 | 8,000.00 | (27,000.00) | 3,000.00 | (48,000.00) |
| 4.00 | 8,000.00 | (19,000.00) | 3,000.00 | (45,000.00) |
| 5.00 | 6,000.00 | (13,000.00) | 3,000.00 | (42,000.00) |
| 6.00 | 5,000.00 | (8,000.00) | 2,000.00 | (40,000.00) |
| 7.00 | 4,000.00 | (4,000.00) | 2,000.00 | (38,000.00) |
| Both the machine don’t have payback period as cashinflows are less than cash outflows | ||||
to LUIS Contents >> SECOND CHANCE EXAM 2 Problem 11 - X Company must replace one...
pe company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $18,000, and Machine B costs $51.000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B S-6,000 $-7.000 -8.000 -4,000 -8,000 -3,000 -8.000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period in...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $60,000. Estimated annual cash flows with the two machines are as follows: Year NM Machine A $ 6,000 8,000 8,000 8,000 6,000 5,000 4,000 Machine B $ 7,000 4,000 3,000 3,000 3,000 2,000 2,000 N If X Company buys Machine B instead of Machine A, what is...
X Company must replace one of its current machines with either
Machine A or Machine B. The useful life of both machines is seven
years. Machine A costs $51,000, and Machine B costs $70,000.
Estimated annual cash flows with the two machines are as
follows:
Year
Machine A
Machine B
1
$-6,000
$-7,000
2
-8,000
-4,000
3
-8,000
-3,000
4
-8,000
-3,000
5
-6,000
-3,000
6
-5,000
-2,000
7
-4,000
-2,000
If X Company buys Machine B instead of Machine...
The answer is not 7, I tried that one already.
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X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $50,000, and Machine B costs $58,000. Estimated annual cash flows with the two machines are as follows: Year von AWN- Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000 -4,000 -3,000 -3,000 -3,000 -2,000 -2,000 If X Company...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $51,000, and Machine B costs $67,000. Estimated annual cash flows with the two machines are as follows: Year Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000 -4,000 -3,000 -3,000 -3,000 -2,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period (in...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $49,000, and Machine B costs $68,000. Estimated annual cash flows with the two machines are as follows: Year Machine A $-6,000 -8,000 -8,000 -8,000 -6,000 -5,000 -4,000 Machine B $-7,000 -4,000 -3,000 -3,000 -3,000 -2,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period (in...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $48,000, and Machine B costs $67,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B 1 $6,000 $-7,000 2 8,000 4,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 3,000 -2,000 6 -5,000 7 4,000 2,000 If X Company buys Machine B instead of Machine...
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $48,000, and Machine B costs $56,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 7 -4,000 -2,000 If X Company buys Machine B instead of Machine...