Question: 5) (Present value tables are required.) Lenardi Corporation is evaluating the purchase of a new machine that would have an initial cost of $125,000. This

5) (Present value tables are required.) Lenardi Corporation is evaluating the purchase of a new machine that would have an initial cost of $125,000. This new machine would have a profitability index of 1.25. The company's discount rate is 12%. What is the present value of the net cash inflows of the new machine project?

A) $15,000

B) $156,250

C) $100,000

D) $1,041,667

PLEASE SHOW ANSWER AND PROVIDE EXPLANATION!

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!

elite electric company case study motivation

I have the answer but would like to know how to solve either one of these withing Excel! or (Present value tables are required.) Calby Enterprises is evaluating the purchase of a new computer network...

(Present value tables are required.) Westin Manufacturing is considering the purchase of a new machine to use in its packing department. The new machine will have an initial cost of $170,000, a...

(Present value tables are required.) Renfroe Corporation is considering the purchase of a machine that would cost $22,712 and would have a useful life of 5 years. The machine would generate $6,300 of...

Lenardi Corporation is evaluating the purchase o a new machine that would have an initial cost of $1 15,000. This new machine would have a profitability index o present value of the net cash inflows...

C E Update BA213- Managerial Accounting - ONLINE -10338 - Winter 2022+* eva ondongo 03/19/22 1:19 PM Quiz: Chapter 12 Graded Quiz Question 2 of 5 This quiz: 10 point(s) possible This question: 2...

Exercise 12-15 Internal Rate of Return and Net Present Value [LO12-2, LO12-3] Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine...

Lenardi Corporation is evaluating the purchase of a new machine that would have an initial cost of $125,000. This new machine would have a profitability index of 1.25. The company's discount rate is...

i really need help understanding this question! Exercise 13-15 Internal Rate of Return and Net Present Value [LO13-2, LO13-3) Henrie's Drapery Service is investigating the purchase of a new machine...

Present Voive of 31 Present value blinhity ot 11 Alrax Mamulacturing is considering the purchase of a new machine to use in its packong department The new machine wil have an ineat cost of Sov, 000 ,...

What kind of combinatonal optimization problem is the swing state problem in relation with 2) Determine a enterion according lo which the states can be ranked from Most interesting to least...

The city recorded a total of $100,000 and cash was transferred to the fiscal agent, which consisted of $70,000 and $30,000 for Bond principal and interest, respectively. (Record journal entry for...

THIS IS FOR C + + NOT Normal C I NEED HELPING UNDERSTAN DO NOT USE I need help understanding how to use as may be used. thank you. I need help understanding more about constructors and the use of...

BMW created a new market by introducing a premium scooter with a roof and windshield with wipers with unique safety features. However, this product failed because BMW fell in which red ocean trap: It...

Would you advise establishing some type of day-care centre for the Carter Cleaning employees? Whyor why not? Carter Cleaning Centres has traditionally provided only legislatively required benefits...

Draft a policy statement regarding vacations, sick leave, and statutory holidays to be used at Carter Cleaning Centres. Carter Cleaning Centres has traditionally provided only legislatively required...

What suggestions would you make to Jennifer to improve her companys current pay plan? Carter Cleaning Centres does not have a formal wage structure nor does it use rate ranges or compensable...