URGENT HELP NEEDED UPVOTE GUARANTEED Tailor Corp is considering purchasing one of two new diagnostic machines The following estimated data has been determined by management Machine 1 Machine 2 Initial cost $40,800 $50,600 Estimated life 6 years 6 years Salvage value $1,110 $1,550 Estimated annual cash inflows $15,150 $19,950 Estimated annual cash outflows $3,900 $6,950 Click here to view PV table Calculate the profitability index assuming an 8 discount rate (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e g 1 25124 and final answers to 3 decimal places, e g 1 251 ) Profitability Index Machine 1 Machine 2 Based on your answer, which project should the company choose

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

Question: URGENT HELP NEEDED UPVOTE GUARANTEED Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management:

*URGENT HELP NEEDED UPVOTE GUARANTEED*\

Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management:

	Machine 1	Machine 2
Initial cost	$40,800	$50,600
Estimated life	6 years	6 years
Salvage value	$1,110	$1,550
Estimated annual cash inflows	$15,150	$19,950
Estimated annual cash outflows	$3,900	$6,950

Click here to view PV table. Calculate the profitability index assuming an 8% discount rate. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answers to 3 decimal places, e.g. 1.251.)

		Profitability Index
Machine 1
Machine 2

Based on your answer, which project should the company choose?

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!

*URGENT HELP NEEDED UPVOTE GUARANTEED* Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management: Machine 1 Machine 2...

*URGENT HELP NEEDED UPVOTE GUARANTEED* TLC 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...

*URGENT HELP NEEDED UPVOTE GUARANTEED* Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Machine A Machine B Investment $107,600...

*URGENT HELP NEEDED UPVOTE GUARANTEED* Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Machine A Machine B Investment $108,100...

Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management: Machine 1 Machine 2 Initial cost $40,000 $50,000 Estimated...

Question 12 Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management: Machine 1 $40,550 5 years Initial cost Estimated...

Question 12 of 15 -14 III View Policies Current Attempt in Progress Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by...

Describe two important motives for having an equity component in employee compensation.

6) Using the following hypothetical information taken from the balance sheet and income statement for ACME Corp., develop Asset Turnover, Return on Assets and GMROI Sales $478,000,000 310,700,000...

Factorise each of these expressions. Each one has a highest common factor of 3. a 18 + 21p b 3y 18 c 9 + 15m d 12 27x

What control chart is recommended to plot defectives using a fixed sample size?

3.54 What is the joint probability of middle income and never? Table 3.10 Probabilities for Television Viewing and Income VIEWING FREQUENCY Regular Occasional Never Totals HIGH INCOME MIDDLE INCOME...

3.55 What is the joint probability of middle income and occasional? Table 3.10 Probabilities for Television Viewing and Income VIEWING FREQUENCY Regular Occasional Never Totals HIGH INCOME MIDDLE...

3.53 What is the joint probability of low income and regular? Table 3.10 Probabilities for Television Viewing and Income VIEWING FREQUENCY Regular Occasional Never Totals HIGH INCOME MIDDLE INCOME...

Question: *URGENT HELP NEEDED UPVOTE GUARANTEED* Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management:

Step by Step Solution

Students Have Also Explored These Related Accounting Questions!

Question: URGENT HELP NEEDED UPVOTE GUARANTEED Tailor Corp. is considering purchasing one of two new diagnostic machines. The following estimated data has been determined by management: