Tlc corp is considering purchasing one of two new

Assignment Help Accounting Basics

Reference no: EM13576427

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

Machine A Machine B
Original cost $78,000 $190,000
Estimated life 8 years 8 years
Salvage value 0 0
Estimated annual cash inflows $20,000 $40,000
Estimated annual cash outflows $5,000 $9,000

Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (Round net present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. Round computations for 9% Discount Factor to 5 decimal places. If the net present value is negative, use either a negative sign preceding the number.

Reference no: EM13576427

Questions Cloud

Madison corp had two issues of securities : madison corp had two issues of securities outstanding-common stock and a 5 percent convertible bond issue in the face

The weekly mean income of a group of executives is 1000 and : the weekly mean income of a group of executives is 1000 and the standard deviation of this group is 100. the

Ddf corporation sold land it had used for parking and : ddf corporation sold land it had used for parking and storage for 20 years for 575000. its basis in the land was 68000.

The mean of a normal probability distribution is 500 and : the mean of a normal probability distribution is 500 and the standard deviation is 10. about 95 percent of the

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

One study found that the average amount spent on textbooks : one study found that the average amount spent on textbooks by students is 434.75 per semester with a standard deviation

Suppose the company is organized so that the purchasing : the following questions are based on the following data - direct materials standard 5 pounds per unit at 2 per pound -

Dobbs corporation is considering purchasing a new delivery : dobbs corporation is considering purchasing a new delivery truck. the truck has many advantages over the companys

The store has no accounts receivable it accepts only cash : kids n caboodle a childrens clothing store had the following cash receipts and disbursements for its first year of

User Account

All Pages