repare a schedule that shows the applicable cash flows and other relevant items for this decision                         2 Compute the payback period for the new machine                                   3 Compute the Accounting Rate of Return (ARR) for the new machine

Calculating initial cash flow Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $319,000. The system can be sold today for $206,000. It is being depreciated using MACRS and a 5-year recovery period (see the table computer system will cost $491,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 21% tax rate on ordinary income and capital gains. a. Calculate the book value of the existing computer system. b. Calculate the after-tax proceeds of its sale for $206,000. c. Calculate the initial cash flow associated with the replacement project. a. The remaining book value is $ (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 10 years 10% 18% 14%…

Knowledge Check A purchase of a backhoe with an 8-year life requires an initial investment of $88,300, has positive cash flows of $10,000 per year, and has an estimated salvage value of $21,700. Indicate the inputs to be entered into the financial calculator keys. What is the return of the investment? (Round internal rate of return to two decimal places (e.g., 52.75%).) Inputs Calculator Keys IRR N 8 -2.143 % ? | PV 88300 i PMT 10000 FV

The production department is proposing the purchase ONE automatic insertion machine. It has identified three machines (A, B and C). Each machine has an estimated useful life of 10 years. minimum desired rate of return of 10%. The accountant has identified the following data: ​   Machine A Machine B Machine C Present value of future cash flows computed using 10% rate of return $305,000 $295,000 $300,500 Amount of initial investment 300,000 300,000 300,000   Based on net present value method, which machine do you recommend?

Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -880,000 -300,000 -930,000 250,000 14 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors The equivalent annual cost of the project is $- 980,731.95

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

デジタル形式で段階的に解決 ありがとう!! SOLVE STEP BY STEP IN DIGITAL FORMAT 1-Determine the investment recovery period for the company Industrias packaging sa de cv. The company is considering the purchase of a new machine and must choose between two alternatives: **The first machine requires an initial investment of $14,000 and will generate annual after-tax cash inflows of $3,000 for the next 7 years. **The second machine requires an initial investment of $21,000 and will provide an annual after-tax cash inflow of $2,300 for 10 years. a) Determine the payback period for each machine. b) Comment on whether the acquisition of the machines is acceptable, assuming that they are independent projects. c) Which machine should the company accept? Because?

IMPORTANT: PLEASE SAVE ALL YOUR HAND CALCULATIONS IN A FILE SO THAT YOU CAN SUBMIT THEM IF REQUIRED BY THE LECTURER. You are considering investing RM62000 in new equipment. You estimate that the net cash flows will be RM11000 during the first year, but will increase by RM2500 per year the next year and each year thereafter. The equipment is estimated to have a 8-year service life and a net salvage value of RM5200 at that time. Assume MARR of 7%. a Calculate the annual capital cost CR (ownership cost) for the equipment. b.Determine the equivalent annual revenue. c.Is this a wise investment? Y/N. Submit Format: 7882 Format: 36630 Format: A

3.  Becktell Industries has an offer to build a special product for the state highway patrol.   The  contract  will  cover  a  period  of 10 years.  The projected cash flows associated with the contract are given below:                       Required:  Complete an analysis to calculate the net present value of the above cash flows.   Company Required Rate of Return 11%                     Cost of new equipment          325,000     Working Capital needed          150,000     Net annual cash receipts            80,000     Salvage Value at end            75,000

MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash inflows from the use of equipment is given below: Year Cash flow $60,000 $40,000 $70,000 $125,000 $35,000 4. Payback period for the proposal is: a. 3 years b. 2 years c. 4 years d. 3.08 years DELL 123 45