Automated products is contemplating purchase of new machine

Assignment Help Financial Management

Reference no: EM131445655

The manager of Automated Products is contemplating the purchase of a new machine that will cost $ 85217 and has a useful life of 2years. The machine will yield (year-end) cost reductions to Automated Products of $40,000 in year 1 and $50,000 in year 2 What is the (NPV) present value of the cost savings of the machine if the interest rate is 5 percent?

Reference no: EM131445655

Questions Cloud

Suitable definition of the industry : A good way to identify the most suitable definition of the industry is to compare your company with other companies in the following key categories: types of suppliers; types of buyers; and processes by which value is added to your primary product..

Describe how forgiveness has touched your own life : Choose a specific offense that occurred in a family, personal relationship, community, or in the world. Describe (briefly; less than half a page) what occurred, and analyze the likely motivations and injustices felt by each party (or group) involv..

What is the best way to approach these conflicts : What is the best way to approach these conflicts? How can you be sure that you are serving the needs of both patients and the organizations for which you work, while exhibiting professionalism and moral courage

Integrated change management for project execution : Describe effective integrated change management for project execution, monitoring, and control.

Automated products is contemplating purchase of new machine : The manager of Automated Products is contemplating the purchase of a new machine that will cost $ 85217 and has a useful life of 2years. The machine will yield (year-end) cost reductions to Automated Products of $40,000 in year 1 and $50,000 in year ..

What is the clean water act and what are its key provisions : What is the Clean Water Act, and what are its key provisions? What is the Safe Drinking Water Act, and what are its key provisions

Create an erd for each of the above statements : Create an ERD for each of the above statements that describe the current business rules for HTH. For each new statement being the business rule, extend the ERD to include the additional business rule in the ERD

Find the bimatrix : Suppose two merchants have to choose a location along the straight road. They may choose any point in {1, 2,..., n}. Assume there is exactly one customer at each of these points and a customer will always go to the nearest merchant.

Calculate the securitys default risk premium : A particular security’s equilibrium rate of return is 9 percent. For all securities, the inflation risk premium is 3.25 percent and the real risk-free rate is 2.2 percent. The security’s liquidity risk premium is 0.95 percent and maturity risk premiu..

User Account

All Pages