Question: How do I find the NPV on number 2? All current information is correct. PLEASE HELP!! Interstate Manufacturing is considering either replacing one of its
How do I find the NPV on number 2? All current information is correct. PLEASE HELP!!

Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management requires a 10% rate of return on its investments. Use the Table B.1 and Table B.3 Keep the old machine and have it overhauled. If the old machine is overhauled, it will be kept for another four years and then sold for its salvage value. Sell the old machine and buy a new one. The new machine is more efficient and will yield substantial operating cost savings with more product being produced and sold. Determine the net present value of alternative 1. (Negative amount should be indicated by a minus sign. Round "PV Factor" to 4 decimal places. Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.) 2. Determine the net present value of alternative 2. (Negative amount should be indicated by a minus sign. Round "PV Factor" to 4 decimal places. Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.) 3. Which alternative do you recommend that management select? Alternative 1 C AIternative 2 Problem 24-4A Computing net present value of alternate investments L.O. P3 Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management requires a 10% rate of return on its investments. Use the Table B.1 and Table B.3 Alternative 1: Keep the old machine and have it overhauled. If the old machine is overhauled, it will be kept for another four years and then sold for its salvage value. Alternative 2: Sell the old machine and buy a new one. The new machine is more efficient and will yield substantial operating cost savings with more product being produced and sold. Required: Determine the net present value of alternative 1. (Negative amount should be indicated by a minus sign. Round "PV Factor" to 4 decimal places. Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Determine the net present value of alternative 2. (Negative amount should be indicated by a minus sign. Round "PV Factor" to 4 decimal places. Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Which alternative do you recommend that management select? Alternative 1 Alternative 2
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