The Valentine Company has decided to buy a machine costing $28,546. Estimated cash savings from using...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Valentine Company has decided to buy a machine costing $28,546. Estimated cash savings from using the new machine amount to $7,000 per year. The machine will have no salvage value at the end of its useful life of eight years. (Ignore income taxes.) Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. If Valentine's required rate of return is 12%, the machine's internal rate of return is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.) 18% 14% 16% 12% EXHIBIT 13B-2 Present Value of an Annuity of $1 in Arrears; 1 - Periods 4% 5% 6% 7% 8% 9% 1 2 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 3 4 5 6 82222 22222 아아아아 아아아하다 아이어요 5.242 5.076 4.917 4.767 4.623 6.002 5.786 5.582 5.389 5.206 6.733 6.463 6.210 5.971 5.747 7.435 7.108 6.802 6.515 6.247 8.111 7.722 7.360 7.024 6.710 8.760 8.306 7.887 9.385 8.863 8.384 13 9.986 9.394 8.853 10.563 9.899 9.295 11.118 10.380 9.712 11.652 10.838 10.106 17 12.166 11.274 10.477 18 12.659 11.690 10.828 10.059 13.134 12.085 11.158 10.336 9.604 20 13.590 12.462 11.470 10.594 9.818 12 15 21 23 14.029 12.821 11.764 10.836 10.017 14.451 13.163 12.042 11.061 10.201 14.857 13.489 12.303 11.272 10.371 24 15.247 13.799 12.550 11.469 10.529 15.622 14.094 12.783 11.654 10.675 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4.339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 25 26 (1+r)") 27 29 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 9.447 8.851 9.763 9.122 9.372 30 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 9.129 8.514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 The Valentine Company has decided to buy a machine costing $28,546. Estimated cash savings from using the new machine amount to $7,000 per year. The machine will have no salvage value at the end of its useful life of eight years. (Ignore income taxes.) Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. If Valentine's required rate of return is 12%, the machine's internal rate of return is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.) 18% 14% 16% 12% EXHIBIT 13B-2 Present Value of an Annuity of $1 in Arrears; 1 - Periods 4% 5% 6% 7% 8% 9% 1 2 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 3 4 5 6 82222 22222 아아아아 아아아하다 아이어요 5.242 5.076 4.917 4.767 4.623 6.002 5.786 5.582 5.389 5.206 6.733 6.463 6.210 5.971 5.747 7.435 7.108 6.802 6.515 6.247 8.111 7.722 7.360 7.024 6.710 8.760 8.306 7.887 9.385 8.863 8.384 13 9.986 9.394 8.853 10.563 9.899 9.295 11.118 10.380 9.712 11.652 10.838 10.106 17 12.166 11.274 10.477 18 12.659 11.690 10.828 10.059 13.134 12.085 11.158 10.336 9.604 20 13.590 12.462 11.470 10.594 9.818 12 15 21 23 14.029 12.821 11.764 10.836 10.017 14.451 13.163 12.042 11.061 10.201 14.857 13.489 12.303 11.272 10.371 24 15.247 13.799 12.550 11.469 10.529 15.622 14.094 12.783 11.654 10.675 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4.339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 25 26 (1+r)") 27 29 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 9.447 8.851 9.763 9.122 9.372 30 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 9.129 8.514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985
Expert Answer:
Answer rating: 100% (QA)
The correct option is A 18 We know that the net present val... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
Posted Date:
Students also viewed these accounting questions
-
If the firms required rate of return is 12 percent, what is the MIRR for the following project? Year Cash Flow 0 .......... $(105,000) 1 .......... 70,000 2 .......... 50,000
-
If the firms required rate of return is 14 percent, what is the net present value of the following project? Year Cash Flow 0 .......... $(75,000) 1 .......... 50,000 2 .......... 40,000
-
An investors required rate of return is important when valuing a bond. What two factors can cause an investors required rate of return to change?
-
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Advantage, Inc. The machines immediately were overhauled, installed, and started operating. The machines...
-
Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2015, 125 shares of preferred stock and 3,000 shares of common stock have been issued....
-
Assume that an enterprise has ten operating segments. Of these, five segments qualify as reportable segments by passing one of the 10% tests. However, their combined revenues from sales to...
-
Air, assumed incompressible and inviscid, flows into the outdoor cooking grill through nine holes of 0.40-in. diameter as shown in Fig. P3.115. If a flowrate of \(40 \mathrm{in.}{ }^{3} /...
-
The Colonial Hard-ware Company manufactures specialty brass door handles at its Lynchburg plant. Colonial is considering implementing a JIT production system. The following are the estimated costs...
-
A department store will remain in business for one more year. The probability of a boom year is 70 percent and the probability of a recession is 30 percent. It is projected that the company will...
-
Problem 3.1: Determine the base width of a 20-m high trapezoidal concrete gravity dam having a vertical upstream face and a top width of 5 m (see Figure 3.53). Design water depth is 18 m. There is no...
-
Examine at least 2 examples of best practices for leaders in team development and communication in the organization using the 3 dimensions of energy, engagement, and exploration. Examine planning...
-
Find the compound interest and future value. Round your answers to the nearest cent. Do not round intermediate steps. Principal Rate Compounded $560 4.85% Quarterly Time 2 years The future value is...
-
I want to start writing a weekly post on Linkedin that lightly analyses M&A activity - particularly in the resources/energy/commodities sector but in other sectors as well. Can you please build a...
-
Assume that saving equals 200, investment equals 100 and capital inflows equal 50. What is the value of capital outflows
-
Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2023, the business pays $100,000 in W-2 wages, has $150,000 of...
-
Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. Compound Amount Term of Investment Nominal Rate (%) Interest...
-
CFR takeover vital to our survival - Adcock London based drug maker Adcock Ingram said a 1 billion takeover by CFR Pharmaceuticals of Chile, which is opposed by its biggest shareholder, was vital to...
-
Which, if any, of the dichloroethene molecules drawn in Data Table II (3.) (4.) and (5.) are geometric isomers? A. B. C. D. cis-1,2-dichloroethene and trans-1,2-dichloroethene...
-
Strauss Company established a predetermined variable overhead cost rate at $10.50 per direct labor hour. The actual variable overhead cost rate was $9.60 per hour. The planned level of labor activity...
-
As noted in Problem 8-24B, Radinka Swimsuit makes swimsuits. In 2014, Radinka produced its most popular swimsuit, the Sarong, for a standard labor price of $28 per hour. The standard amount of labor...
-
Werner Fishing Tours, Inc., owns a boat that originally cost $240,000. Currently, the boats net book value is $72,000, and its expected remaining useful life is four years. Werner has an opportunity...
-
What is the change in velocity of \((a)\) cart 1 (b) cart 2 in Figure 4.6? (c) What do you notice about your two answers? Figure 4.6 Velocity-versus-time graph for two identical carts before and...
-
(a) Are the accelerations of the motions shown in Figure 4.1 constant? (b) For which surface is the acceleration largest in magnitude? Figure 4.1 Velocity-versus-time graph for a wooden block sliding...
-
The \(x\) component of the final velocity of the standard cart in Figure 4.8 is positive. Can you make it negative by adjusting this cart's initial speed while still keeping the half cart initially...
Study smarter with the SolutionInn App