Srb corp is considering purchasing one of two new

Assignment Help Accounting Basics

Reference no: EM13595815

SRB 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 isn't equipped to do. Estimates regarding each machine are provided below.

Machine A Machine B
Original cost $77,540 $189,500
Estimated life 8 years 8 years
Salvage value 0 0
Estimated annual cash inflows $19,860 $40,250
Estimated annual cash outflows $5,080 $9,120

Calculate the net present value and profitability index of each machine. Assume a 9% discount rate.

Machine A

Net present value $
Profitability index

Machine B

Net present value $
Profitability index

Which machine should be purchased?

Reference no: EM13595815

Questions Cloud

Calculate the specific heat capacity of the calorimeter c : a 10.0 g piece of metal at 100 degree celsius is transferred to a calorimeter containing 50.0 ml of water initially at

On january 1 2009 1000000 5-year 10 bonds were issued for : on january 1 2009 1000000 5-year 10 bonds were issued for 960000. interest is paid semiannually on january 1 and july

An investor purchased 500 shares of common stock 25 par : an investor purchased 500 shares of common stock 25 par for 21750. subsequently 100 shares were sold for 49.50 per

What is the predominant intermolecular force dipole-dipole : what is the predominant intermolecular force dipole-dipole dispersion or hydrogen bonding in each of these compounds

Srb corp is considering purchasing one of two new : srb corp. is considering purchasing one of two new diagnostic machines. either machine would make it possible for the

Zach company owns 40 of the voting stock of tomas : zach company owns 40 of the voting stock of tomas corporation and uses the equity method in recording this investment.

A sample of 105 g of lead ii nitrate is mixed with 130 ml : a sample of 1.05 g of lead ii nitrate is mixed with 130 ml of 0.106 m sodium sulfate solution. what are the

Xpected sales for tents at sandys camping gear are 4200 : xpected sales for tents at sandys camping gear are 4200 6100 2200 3400 and 5300 for the next five quarters. at the end

C6h12o6 o2 --gt co2 h2o is the overall chemical equation : c6h12o6 o2 --gt co2 h2o is the overall chemical equation for biological respiration. how many moles of co2 are

User Account

All Pages