24. You must choose between four pieces of comparable equipment based on the cash flows given...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
24. You must choose between four pieces of comparable equipment based on the cash flows given below. All four pieces have a life of 8 years. Parameter Equipment A В C D First cost $25,000 $8,000 $2,500 $35,000 $6,000 $3,500 $20,000 $9,000 $2,000 $40,000 $5,000 $4,000 Annual costs Salvage value The interest is 12% compounded annually. Ignore taxes. The most preferable top two projects and the difference between their present worth values are most nearly: (A) A and C, $170 (B) B and D, $170 (C) A and C, $234 (D) B and D, $234 24. You must choose between four pieces of comparable equipment based on the cash flows given below. All four pieces have a life of 8 years. Parameter Equipment A В C D First cost $25,000 $8,000 $2,500 $35,000 $6,000 $3,500 $20,000 $9,000 $2,000 $40,000 $5,000 $4,000 Annual costs Salvage value The interest is 12% compounded annually. Ignore taxes. The most preferable top two projects and the difference between their present worth values are most nearly: (A) A and C, $170 (B) B and D, $170 (C) A and C, $234 (D) B and D, $234
Expert Answer:
Answer rating: 100% (QA)
B and D 170 is the correct answer Now the calculation is below for the question The pre... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Posted Date:
Students also viewed these computer engineering questions
-
You must choose between a no-load, open-end mutual fund with an annual expense ratio of 0.85 percent but no transaction cost and an ETF with an annual expense ratio of 0.25 percent and a transaction...
-
Based on the cash flows given below, calculate the PI of a project that has a required rate of return of 15 percent. Also, indicate whether the project should be accepted. Year 0: $90,000 Year 1:...
-
Based on the cash flows shown, classify each of the following cases as a growing start-up company (S), a healthy established company (E), or an established company facing financial difficulties (F)....
-
Knoko Systems is considering a capital budgeting project with a life of five years that requires an outlay of $90,000. It has free cash flows each period as shown in the following distribution:...
-
Because of bad weather, the number of days next week that the captain of a charter fishing boat can leave port is uncertain. Let x = number of days that the boat is able to leave port per week. The...
-
Twenty people leaving a cinema are each asked, How many times have you attended the cinema in the past year? Their responses are: 6, 2, 13, 1, 4, 8, 11, 3, 4, 16, 7, 20, 13, 5, 15, 3, 12, 9, 26 and...
-
Repeat the requirements of Exercise 18-44, but now assume that the asset was \(100 \%\) expensed for tax purposes in 2020. Exercise 18-44 Staples Corporation would have had identical income before...
-
The following information pertains to Crane Video Company. 1. Cash balance per bank, July 31, $7,263. 2. July bank service charge not recorded by the depositor $28. 3. Cash balance per books, July...
-
1. a. In general terms discuss the role of the Public Financial Management Reform Program (PUFMARP) and Budget and Public Expenditure Management System (BPEMS) in budgeting within the Ghanaian publ...
-
A woman of blood group B+ marries a man of blood groupA+. She has 3 children, one blood type A+, another blood type B+ and the last one blood type O-. What are the genotypes of each family member?...
-
What comprehensive approach to long term planned change intended to improve an organization's ability to respond to change in its external environment?
-
Find the NPV, IRR, and Discounted Payback for the following project: Cost of project = $5,000,000. Project generates an after-tax cash flow of $2,000,000 per year for 9 years. Discount rate of 12%. A...
-
What barriers did Apple face in the Korean market? Is South Korea Business friendly for domestic and international companies?
-
XYZ Corporation reported the following information for the current year: (1) Net income is $216 million. (2) Acquisitions were $34 million. (3) Customer accounts receivable increased by $14 million....
-
After completing the Self Assessment: Active Listening Skills Inventory and watching the below video on The Power of Communication. please address the following: Discuss your results and ways you can...
-
Belanger Ltd. reports a current ratio of 2-to-1 in its 20X2 financial statements. The statement of financial position shows current assets of $2,570,500 and current liabilities of $1,404,000....
-
Provide a draft/outline of legal research involving an indigenous Canadian woman charged with assault causing bodily harm under (Sec 267b) of the Criminal Code, where the crown wants a 12-month jail...
-
Describe the major differences between group health insurance and individual health insurance. Which is likely to be cheaper?
-
What is the purpose for adjusting your asset allocation as you age? Why wouldnt the best or highest returning portfolio always be prudent?
-
Assume you just purchased 250 shares of Home Depot at $40 per share and 50 percent of this was purchased "on the margin." Fill in the blanks to determine your contribution to this transaction: Total...
-
On December 1, 2017, Sizzler Foods, a U.S. company, purchased merchandise from a Hong Kong supplier at a price of HK\($10,000,000,\) payable in three months in Hong Kong dollars. To hedge its exposed...
-
On March 15, 2017, Hunt Brands, a U.S. company, purchased merchandise from a South African company at a price of R1,000,000, payable in two months in rands. To hedge its exposed liability position,...
-
On September 3, 2017, Robin Franchises, a U.S. company, sold merchandise to a franchisee in the U.K., at a price of 8,000,000, payable in three months in pounds. To hedge its exposed asset position,...
Study smarter with the SolutionInn App