Required Information[The following information applies to the questions displayed below]Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The companyrequires a 6% return from its Investments,Initial investmentNet cash los!Year 1Year 2Year 3Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $32,000 at the end of its three-yearlife Compute the machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tablesprovided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.)Year 1Year 2Year 3Year 3 salvage valueTotalsInitial investmentNet present valueNet CashFlows$$ (360,000)120,000126,00087,0000Present ValueFactorPresent Value of NetCash Flows$$--00 Required information[The following Information applies to the questions displayed below]Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The companyrequires a 6% return from its investments.Initial investmentNet cash flowSYear 1Year 2Year 3Compute this machine's net present value (PV of $1. FV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tablesprovided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.)Year 1Year 2Year 3TotalsInitial investmentNet present valueNet Cash Flow$ (360,000)120,000126,00087,000$0Present ValueFactorPresent Value of NetCash Flows$$0

NET PRESENT VALUE Net Present Value is one of the Important Capital Budgeting Technique. Net…

Required Information The following information applies to the questions displayed below] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its Investments. $ (360,000) 120,000 126,000 87,000 Initial investment Net cash #lo Year 1 Year 2 Year 3 Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $32.000 at the end of its three-year life Compute the machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Year 3 salvage value Totals Initial investment Net present value Net Cash Flows $ 0 Present Value Factor Present Value of Net Cash Flows $ $ 0

Required Information The following information applies to the questions displayed below] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its Investments. $ (360,000) 120,000 126,000 87,000 Initial investment Net cash #lo Year 1 Year 2 Year 3 Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $32.000 at the end of its three-year life Compute the machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Year 3 salvage value Totals Initial investment Net present value Net Cash Flows $ 0 Present Value Factor Present Value of Net Cash Flows $ $ 0

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1MAD: San Lucas Corporation is considering investment in robotic machinery based upon the following...

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Identify error in capital investment analysis calculations Artscape Inc. is considering the purchase of automated machinery that is expected to have a useful life of five years and no residual value. The average rate of return on the average investment has been computed to be 20%, and the cash payback period was computed to be 5.5 years. Do you see any reason to question the validity of the data presented? Explain.
Required information [The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its investments. Initial investment Net cash flows: Year 1 Year 2 Year 3 Compute this machine's net present value. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Totals Initial investment Net present value $ (360,000) 190,000 138,000 113,000 Net Cash Flow $ 0 Present Value Factor Present Value of Net Cash Flows $ $ 0 0
[The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its investments. Initial investment Net cash flows: Year 1 Year 2 Year 3 QS 11-19 (Algo) Net present value with unequal cash flows LO P3 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flow $ $ (220,000) 175,000 128,000 89,000 $ 175,000 128,000 89,000 392,000 Present Value Factor Present Value of Net Cash Flows $ $ 0 0
Required information [The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 3% return from its investments. Initial investment Net cash flows: Year 1 Year 2 Year B Year 1 Year 2 Year 3 Totals Initial investment Net present value Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Net Cash Flow LUD $ $ (230,000) 0 190,000 96,000 123,000 Present Value Present Value of Net Factor Cash Flows $ 09 0 0
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