the purchase of... Poe Company is considering the purchase of new equipment costing $80,000. The projected annual cash inflows are $30,200, to be received at the end of each machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of $1 and present value of annuity for different periods are presented below. Compute the net present value of the machine (rounded to the nearest whole dollar). Periods 1 2 3 4 Present Value of $1 at 10% 0.9091 0.8264 0.7514 0.6830 Present Value of an Annuity of $1 at 10% 0.9091 1.7355 2.4869 3.1699

The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year OperatingIncome   Net CashFlow 1 $18,750       $93,750     2 18,750       93,750     3 18,750       93,750     4 18,750       93,750     5 18,750       93,750     The average rate of return for this investment is a.10% b.15% c.5% d.25%

Project 1 requires an original investment of $54,000. The project will yield cash flows of $8,000 per year for nine years. Project 2 has a calculated net present value of $17,300 over a seven-year life. Project 1 could be sold at the end of seven years for a price of $37,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162   Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402…

The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for five years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year Income fromOperations Net CashFlow 1 $18,750   $93,750   2 18,750   93,750   3 18,750   93,750   4 18,750   93,750   5 18,750   93,750   The average rate of return for this investment is