Question: PULL HAREN PRINTER VERSION BACK NEXT Brief Exercise 16-4 Riverbed Corporation is considering the purchase of a new botting machine. The machine would cost $200,343
PULL HAREN PRINTER VERSION BACK NEXT Brief Exercise 16-4 Riverbed Corporation is considering the purchase of a new botting machine. The machine would cost $200,343 and has an estimated useful We of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $33,000. Management also believes that the new botting machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 7%. Click here to view Py_table. Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number o.o. -45 or parentheses 09. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to o decimal places, e.g. 125.) Net present value How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to O decimal places, eg. 125.) Click If you would like to Show Work for this question: Doen Show Work Question Attempts: 0 of 1 used
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