7 8 ints eBook Print References 1. Commipur Suaignen pro cach your PC CHI 10. 2. Determine expected net income and net cash flow for each year of this machine's life. 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 4. Compute this machine's accounting rate of return, assuming that income is earned evenly throughout each year. 5. Compute the net present value for this machine using a discount rate of 7% and assuming that cash flows occur at each year-end. (Hint: Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the net present value for this machine using a discount rate of 7% and assuming that cash flows occur at each year-end. (Hint: Salvage value is a cash inflow at the end of the asset's life.) (Do not round intermediate calculations. Amounts to be deducted should be indicated by a minus sign.) Cash Flow Annual cash flow Residual value Chart Values are Based on: Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Present value of cash outflows Net present value n = 1 = www www Present Value $ Next > 0 0

2. Determine expected net Income and net cash flow for eoch year of this mas 2. Determine expected net income and net casth now for each year of this machine's life. 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year, 4. Compute this machine's accounting rate of retum, assuming that income is earned evenily throughout each yeat 5. Compute the net present value for this machine using a discount rate of 7% and assuming that cash flows occur at eachi year-end (Hint Salvage value is a cash inflow at the end of the asset's life.) Complete this question by entering your answers in the tabs below. Compute the net present value for this machine using a discount rate of 7% and assuming that cash fius occur at each year-end. (Hint: Salvage value is a cash inflow ot the end of the assot's life.) (Do not round intermediate calculations. Amounts to be dediacted should be indicated by a minus sign.) Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000cost with an expected four-year life and a $15,000 salvage value. All sales are for casth, and all costs are out of pocket. except for depreciation on the new machine. Additional information indudes the following (PV of S1. EV ofSIt. PVA of S1, and EVA of 51 (Use oppropriate foctor(s) from the tables provided.) Required: 1. Compute straight line deprectation for each year of this new machine's life. 2. Determine expected net income and net cash flow for each year of this machine's life. 3. Compute this machine's payback period, assuming that cash flows occur evenly throughout cach ycar. 4. Compute this machine's accounting rate of retum, assuming that income is carned evenly throughout each year. 5. Compute the net present value for this machine using a discount rate of 7% and assuming that cash fiows occur at each year-end. (Hint Satvage value is a cash intlow at the end of the asset's life) Complete this question by entering your answers in the tabs below