Cars Inc is considering purchasing a diagnostic machine The machine would make it possible for the company to bid on jobs that it currently isnt equipped to do Estimates regarding the machine are provided below Machine Estimates Original Cost $77,000 Estimated Life 8 years Salvage Value $0 Estimated Annual Cash Inflows $19,900 Estimated Annual Cash Outflows $4,800 Calculate the net present value of the machine investment Assume a 9 discount rate Group of answer choices A $20,074 B $6,576 C $20,074 D $15,100

The Answer is in the image, click to view ...

Question: Cars Inc. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isnt

Cars Inc. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isnt equipped to do. Estimates regarding the machine are provided below.

	Machine Estimates
Original Cost	$77,000
Estimated Life	8 years
Salvage Value	$0
Estimated Annual Cash Inflows	$19,900
Estimated Annual Cash Outflows	$4,800

Calculate the net present value of the machine investment. Assume a 9% discount rate.

Group of answer choices

A: -$20,074

B: $6,576

C: $20,074

D: $15,100

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!

Road Racer Sports, Inc. is a mail-order business dedicated to the running enthusiast. The company sends out full-color catalogs several times a year to several hundred thousand people on its mailing...

Old MathJax webview TABLE4 Present Value of an Annuity of 1 (n) Payments 4 5 1 2 3 4 5 6 7 8 9 10 96154 .95238 94340 1.88609 1.85941 1.83339 2.77509 2.72325 2.67301 3.62990 3.54595 3.46511 4.45182...

BIK corp is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isnt equipped to do. Estimates regarding the machine are...

KAM Corp. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isnt equipped to do. Estimates regarding the machine are...

DIUSSON Corp. IS CONSIiing purchasing one of two new ulagiustic machines. Liufti Machine would make it possIDIC FOR THE Company to bid on jobs that it currently isn't equipped to do. Estimates...

Oriole Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates...

BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates...

Crane Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates...

BAR Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates...

3 Managerial Accounting BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped...

Cost-plus target return on investment pricing. John Blodgett is the managing partner of a business that has just finished building a 60-room motel. Blodgett anticipates that he will rent these rooms...

Descartes buys a book for $14.99 and a bookmark. He pays with a $20 bill and receives $3.96 in change. How much does the bookmark cost?

Flawed ways to pursue competitive efforta that will sccesslylly differentiate a company's brandad footiwear from the branded offerings of rival combanies include falling to sign enough celebrities to...

I need someone to verify the numbers I have on Form 1120 are correct based on the Excel Data provided below. All the data and information that I have for this is provided below. I was supposed to...

Kathy Concepcion operates KC, a perfume and soap store. The company uses special journals. KC provides a special column for 12% VAT in its sales and purchases journal. VAT is included in the...

A farmer uses pivot irrigation to water a circular field of crops. Due to varying conditions, the field does not produce consistently. The farmer wants to achieve maximum profit using limited...

MONARCH INSTITUTE The partners have all replied to your email approving the financial report. They have also asked to complete additional analysis of the financial data. The business would like to...

A survey was completed among patients after discharging from an emergency room in a certain month. The following questions were asked after reflecting on the ER visit: Variable Question Wait Time...

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? i s a n e v e n t t h a t c a u s e d d a m a g e t h a t w a s n o t s e r i o u s o r l a s t i n g . Question 5 options: Sentinel event...

The text lists numerous suggestions for how to prevent accidents. Based on what you know about the Texas City explosion, what do you say Texas City tells you about the most important three steps an...

15-2 With government policies like this, how do you think French companies remain competitive with those, say, in the United States?

1 If you were a high-level administrator at a university what difficulties might you expect to find in implementing this balanced scorecard approach? Publicly funded universities face pressure to...