Question: current attempt in Progress BSU Inc. wants to purchase a new machine for $44.300, excluding $1,500 of installation costs. The old machine was bought five
current attempt in Progress BSU Inc. wants to purchase a new machine for $44.300, excluding $1,500 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,200, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $10,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value. Click here to view PV table Determine the cash payback period. (Round cash payback period to 2 decimal places, s. 10:53) Cash payback period Determine the approximate internal rate of return. Round answer to decimal places, 13% For calculation purposeuse 5 decimal places as displayed in the factor table provided) Internal rate of return Assuming the company has a required rate of return of determine whether the new machine should be purchased The investment be accepted e Textbook and Media
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