Management estimates that the new bottling machine

Assignment Help Financial Accounting

Reference no: EM131213586

Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $172,129 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $33,400. Management also believes that the new bottling 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 12%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to 0 decimal places, e.g. 125.) Net present value $Entry field with incorrect answer now contains modified data How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to 0 decimal places, e.g. 125.) $Entry field with incorrect answer now contains modified data

Reference no: EM131213586

Questions Cloud

Explain its existence and prevalence : Describe what social engineering is and explain its existence and prevalence. Explain why SE is an important part of an information technology security course.

Design and implement a concurrency abstraction : Combining monitors and transactions. Design and implement a concurrency abstraction that combines the abilities of monitors and transactions. That is, it has the ability to wait and notify, and also the ability to abort without changing any state...

Database design lacks functionality : The current movie database design lacks functionality to support theaters and show times. It is not possible to see what theaters a movie is currently playing in or what movies are being shown at a particular theater. Therefore, we would like to..

Add the termination detection algorithm : For this exercise, extend the transaction manager so that the individual transactions can themselves be concurrent. Hint: add the termination detection algorithm of section 5.6.3.

Management estimates that the new bottling machine : Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $172,129 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net..

Difference in a consultant vs a contractor : Part I: Can one be productive working at home? Please describe in detail of whether or not your choice on this. Part II: What is the difference in a Consultant vs a Contractor? Please describe the differences.

Credit union finances auto loans for its members : Lake Michigan Credit Union finances auto loans for its members. Each loan can be classified into one of four categories: paid in full, good standing, poor standing (with one or more missing payments), and delinquent (where the debt is sold to a colle..

Application-creating a security policy : You have just purchased a used car at a fantastic price. You are so excited that you decide to take an extended drive. Unfortunately, you experience a flat tire and discover that you do not have a spare. Now, your vehicle is disabled because you a..

Report on strategy to source capture & exploit innovatation : Write a report on topic "Strategy to source, capture and exploit innovation" in 500 Words.

User Account

All Pages