Question: your answer is partially correct Bramble Industries is considering the purchase of new equipment costing $1,209,000 to replace existing equipment that will be so for
your answer is partially correct Bramble Industries is considering the purchase of new equipment costing $1,209,000 to replace existing equipment that will be so for $185,900. The new equipment is expected to have a $204,000 salvage value at the end of its 5-year life. During the period of its use the equipment will allow the company to produce and sell an additional 33,700 units annually at a sales price of $25 per unit Those units will have a variable cost of $15 per unit. The company will also incur an additional $93,900 in annual fixed costs. Click here to view the factor table. Calculate the present value of each cash flow assuming an 7% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, eg. 58,971. Enter negative amounts using a negative sign preceding the number eg. -58,971 or parentheses eg. (58,971)) Cash Flow Present Value $ 1209000 Purchase of new equipment 185900 Salvage of old equipment 34544186 Sales revenue 2015 Variable costs BOATS Additional fixed costs 195 Salvage of new eau emens Tedbook and Media Atents or use
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