What is the machines net present value

Assignment Help Financial Accounting

Reference no: EM131215767

Rayburn Industries is evaluating the investment of $126,600 in a new packing machine that should provide annual cash operating inflows of $27,950 for 6 years. At the end of 6 years, the packing machine will be sold for $5,110. Rayburn’s required rate of return is 9%. Collapse question part (a) What is the machine’s net present value? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answer to 0 decimal places e.g. 58,971.) Net present value $

Reference no: EM131215767

Questions Cloud

Find the minimum pretax earnings per year : FIN 508 - Financial Management Assignment. Find the minimum pretax earnings per year that the machine must generate to become profitable

Reduce fractions to the lowest possible terms : Six Flags rates its rides as mild, moderate, or max. The Six Flags Great Adventure park where the Kingda KA ride is located has a total of 49 rides. Of these, 12 have a max rating, 8 have a moderate rating, and the remainder are rated mild. Express e..

Equivalent units of production are equal to : Equivalent units of production are equal to:

Many social welfare issues : Your client, Rich N Ready, has come to you for advice. Rich is interested in many social welfare issues (e.g., access to higher education, welfare reform, and abortion rights). He wishes to use his wealth to educate the general public on these issues..

What is the machines net present value : Rayburn Industries is evaluating the investment of $126,600 in a new packing machine that should provide annual cash operating inflows of $27,950 for 6 years. At the end of 6 years, the packing machine will be sold for $5,110. Rayburn’s required rate..

What is the? company gross profit for the day : Precious, Inc. is a merchandiser of a single line of golden rings. At the beginning of the? day, the shop had 10 rings in its inventory. During the? day, 4 new rings were delivered to the shop. By close of? business, only 8 rings remained in inventor..

What happens to the total variable? costs : Say a? company’s total costs are? $2,500,000 when? 100,000 units are made. Of the total? cost, ?$400,000 is fixed. Assume all volumes referenced in the question fall within the relevant range. What are the expected total costs when 120,000 units are ..

Using cash from operations to repay long term debt : Upon review of Make Your? Mark, Inc.’s Statement of Cash? Flows, the following was? noted: using cash from operations to repay long term debt and purchase long term assets. selling long term assets to fund operations and pay dividends to shareholders..

Explain what you would expect to get from these individuals : You are a county emergency management director. The state your county is part of has published a new homeland security strategy. Do you believe that you will need to review it and then redraft your county's strategies and check to make sure all pl..

User Account

All Pages