Question: 12- please answer correctly and clearly, will leave a like thanks. Also need, Profitability index, and internal rate of return for both machine 1 and

12-
please answer correctly and clearly, will leave a like thanks. Also need, Profitability index, and internal rate of return for both machine 1 and machine 2.
12- please answer correctly and clearly, will leave a like thanks. Also
need, Profitability index, and internal rate of return for both machine 1

Indigo Company is considering purchasing one of two new machines. The following estimates are available for each machine: Initial cost Annual cash flows Annual cash outflows Estimated useful life Period Machine 1 $241,700 6 91,500 36,000 6 years Machine 2 $213,600 91,500 The company's minimum required rate of return is 9%. 41,000 9% 6 years Present Value of an Annuity of 1 8% 10% 4.62288 4.48592 4.35526 4.23054 11% 12% 4.11141 3.78448 15% (a1) Compute the net present value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round intermediate calculations and final answers to 0 decimal places, e.g. 5,275.) Net present value $ Machine 1 Machine 2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!