Question: answer all (24-25-26th ) questions with solution and formula 24. Harbor Town Corp s considering the purchase of a machine. Two alternatives have been i
24. Harbor Town Corp s considering the purchase of a machine. Two alternatives have been i solated The firm's discount rate is 12.5%. Machine A has a net present value of$265,000 and a useful life of 5 years. Machine B has a net present value of $91,500 and a useful life of 3 years. What is Machine A's Equivalent Annual Annuity? a. $55,821 b. $74,426 c. $37,512 d. $22,318 ABC already spent $85,000 on a feasibility study for a machine that will produce a new product. The 5. machine will cost $2,575,000. Required modifications will cost $375,000. ABC will need to invest $75,000 for additional inventory. The machine has an IRS approved useful life of 7 years;, it is presumed to have no salvase value. It will only be operated for 3 years, after which it will be sold for $600,000. What is the depreciable cost basis of the machine? a. $3,025,000 b. $2,950,000 c. $2,575,000 d. $2,350,000 26. ABC already spent $85,000 on machine will cost $2,575,000. Required modifications w for additional inventory. The machine has an IRS a salvage value. It will only be years, after investment amount required for the machine? a feasibility study for a machine that will produce a new p roduct. The fe of 7 years; it is presumed to have no ill cost $375,000. ABC will need to invest perated for 3 years, after which it will be sold for $600,000. What is the to pproved useful li a. $3,025,000 b. $2,950,000 c. $2,575,000 d. $2,350,000
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