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The manager of a canned food processing plant must decide between two different labeling machines. The estimated cash flows are shown in Table below. Which one should be selected on the basis of Present Worth (PW) analysis at 10% per year? Machine A Machine B First cost, $ - 42,000 - 51,000 Annual operating - 28,000 - 17,000 cost, $ 10% of initial Salvage value, $ 10% of initial cost cost Life, years 4 4 10% 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors Uniform Series Payments Arithmetic Gradients Single Payments Capital Recovery A/P Gradient Present Worth P/G Gradient Uniform Series A/G Compound Present Compound Amount Present Worth Sinking Fund Amount Worth P/F A/F F/A P/A F/P 1.1000 0.9091. 1.00000 1.0000 1.10000 0.9091 0.4762 0.47619 2.1000 0.57619 1.7355 0.8264 1.2100 0.8264 0.9366 3.3100 0.40211 2.4869 2.3291 1.3310 0.7513 0.30211 1.3812 0.31547 3.1699 4.3781 1.4641 0.6830 0.21547 4.6410 1.8101 4. 6.8618 9.6842 12.7631 3.7908 0.16380 0.12961 6.1051 7.7156 • 0.26380 0.22961 .5 1.6105 0.6209 4.3553 .2.2236 1.7716 0.5645 2.6216 6. 9.4872 0.20541 4.8684 0.10541 3.0045 3.3724 1.9487 0.5132 16.0287 19.4215 11.4359 0.18744 5.3349 0.4665 0.08744 2.1436 2.3579 8 0.17364 5.7590 0.4241 0.07364 13.5795 22.8913 3.7255 6.1446 0.06275 15.9374 0.16275 2.5937 0.3855 10

The manager of a canned food processing plant must decide between two different labeling machines. The estimated cash flows are shown in Table below. Which one should be selected on the basis of Present Worth (PW) analysis at 10% per year? Machine A Machine B First cost, $ - 42,000 - 51,000 Annual operating - 28,000 - 17,000 cost, $ 10% of initial Salvage value, $ 10% of initial cost cost Life, years 4 4 10% 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors Uniform Series Payments Arithmetic Gradients Single Payments Capital Recovery A/P Gradient Present Worth P/G Gradient Uniform Series A/G Compound Present Compound Amount Present Worth Sinking Fund Amount Worth P/F A/F F/A P/A F/P 1.1000 0.9091. 1.00000 1.0000 1.10000 0.9091 0.4762 0.47619 2.1000 0.57619 1.7355 0.8264 1.2100 0.8264 0.9366 3.3100 0.40211 2.4869 2.3291 1.3310 0.7513 0.30211 1.3812 0.31547 3.1699 4.3781 1.4641 0.6830 0.21547 4.6410 1.8101 4. 6.8618 9.6842 12.7631 3.7908 0.16380 0.12961 6.1051 7.7156 • 0.26380 0.22961 .5 1.6105 0.6209 4.3553 .2.2236 1.7716 0.5645 2.6216 6. 9.4872 0.20541 4.8684 0.10541 3.0045 3.3724 1.9487 0.5132 16.0287 19.4215 11.4359 0.18744 5.3349 0.4665 0.08744 2.1436 2.3579 8 0.17364 5.7590 0.4241 0.07364 13.5795 22.8913 3.7255 6.1446 0.06275 15.9374 0.16275 2.5937 0.3855 10

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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The manager of a canned food processing plant must decide between two different labeling machines. The estimated cash flows are shown in Table below. Which one should be selected on the basis of Present Worth (PW) analysis at 10% per year? Machine A Machine B First cost, $ - 42,000 - 51,000 Annual operating - 28,000 - 17,000 cost, $ 10% of initial Salvage value, $ 10% of initial cost cost Life, years 4 4 10% 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors Single Payments Uniform Series Payments Arithmetic Gradients Gradient Uniform Series Gradient Capital Recovery A/P Present Sinking Fund Compound Amount Compound Present Worth Present Worth Amount Worth P/A P/G A/G F/P P/F A/F F/A 1.0000 1.10000 0.9091 1.1000 0.9091, 1.00000 0.4762 2.1000 0.57619 1.7355 0.8264 1.2100 0.8264 0.47619 0.9366 0.40211 2.4869 2.3291 3 1.3310 0.7513 0.30211 3.3100 1.3812 0.31547 3.1699 4.3781 1.4641 0.6830 0.21547 4.6410 1.8101 4. 0.26380 3.7908 6.8618 1.6105 0.6209 0.16380 6.1051 9.6842 2.2236 .5 7.7156 0.22961 4.3553 1.7716 0.5645 0.12961 12.7631 2.6216 9.4872 0.20541 4.8684 7. 1.9487 0.5132 0.10541 16.0287 3.0045 11.4359 0.18744 5.3349 0.08744 3.3724 0.4665 0.4241 8. 2.1436 5.7590 19.4215 0.07364 13.5795 0.17364 3.7255 9. 2.3579 6.1446 22.8913 0.06275 15.9374 0.16275 2.5937 0.3855 10
Transcribed Image Text:The manager of a canned food processing plant must decide between two different labeling machines. The estimated cash flows are shown in Table below. Which one should be selected on the basis of Present Worth (PW) analysis at 10% per year? Machine A Machine B First cost, $ - 42,000 - 51,000 Annual operating - 28,000 - 17,000 cost, $ 10% of initial Salvage value, $ 10% of initial cost cost Life, years 4 4 10% 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors Single Payments Uniform Series Payments Arithmetic Gradients Gradient Uniform Series Gradient Capital Recovery A/P Present Sinking Fund Compound Amount Compound Present Worth Present Worth Amount Worth P/A P/G A/G F/P P/F A/F F/A 1.0000 1.10000 0.9091 1.1000 0.9091, 1.00000 0.4762 2.1000 0.57619 1.7355 0.8264 1.2100 0.8264 0.47619 0.9366 0.40211 2.4869 2.3291 3 1.3310 0.7513 0.30211 3.3100 1.3812 0.31547 3.1699 4.3781 1.4641 0.6830 0.21547 4.6410 1.8101 4. 0.26380 3.7908 6.8618 1.6105 0.6209 0.16380 6.1051 9.6842 2.2236 .5 7.7156 0.22961 4.3553 1.7716 0.5645 0.12961 12.7631 2.6216 9.4872 0.20541 4.8684 7. 1.9487 0.5132 0.10541 16.0287 3.0045 11.4359 0.18744 5.3349 0.08744 3.3724 0.4665 0.4241 8. 2.1436 5.7590 19.4215 0.07364 13.5795 0.17364 3.7255 9. 2.3579 6.1446 22.8913 0.06275 15.9374 0.16275 2.5937 0.3855 10
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