The management of Urbine Corporation is considering the purchaseof a machine that would cost $330,000 would last for 6 years, andwould have no salvage value. The machine would reduce labor andother costs by $65,000 per year. The company requires a minimumpretax return of 9% on all investment projects. (Ignore incometaxes in this problem.)
The net present value of the proposed project is closest to:(Round discount factor(s) to 3 decimal places, intermediate andfinal answers to the nearest dollar amount.)
â$20,530
â$8,410
â$38,410
â$56,290
The management of Urbine Corporation is considering the purchaseof a machine that would cost $330,000 would last for 6 years, andwould have no salvage value. The machine would reduce labor andother costs by $65,000 per year. The company requires a minimumpretax return of 9% on all investment projects. (Ignore incometaxes in this problem.)
The net present value of the proposed project is closest to:(Round discount factor(s) to 3 decimal places, intermediate andfinal answers to the nearest dollar amount.)
â$20,530
â$8,410
â$38,410
â$56,290
Related questions
Clairmont Corporation is considering the purchase of a machinethat would cost $210,000 and would last for 8 years. At the end of8 years, the machine would have a salvage value of $20,000. Byreducing labor and other operating costs, the machine would provideannual cost savings of $34,000. The company requires a minimumpretax return of 8% on all investment projects. (Ignore incometaxes in this problem.)
Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determinethe appropriate discount factor(s) using tables.
The net present value of the proposed project is closest to:(Round discount factor(s) to 3 decimal places, intermediate andfinal answers to the nearest dollar amount.)
$(3,802)
$12,722
$62,000
$(19,149)
Last year Burch Corporation's cash account decreased by $27,000.Net cash provided by investing activities was $8,200. Net cash usedin financing activities was $23,000. On the statement of cashflows, the net cash flow provided by (used in) operating activitieswas: |
$(41,800)
$(12,200)
$14,800
$(27,000)
McCorey Corporation recorded the following events last year: |
| Repurchase by thecompany of its own common stock | $39,000 |
| Sale of long-terminvestment | $58,000 |
| Interest paid tolenders | $14,500 |
| Dividends paid tothe company's shareholders | $68,000 |
| Collection byMcCorey of a loan made to another company | $44,000 |
| Payment of taxes togovernmental bodies | $24,500 |
On the statement of cash flows, some of these events areclassified as operating activities, some are classified asinvesting activities, and some are classified as financingactivities. |
Based solely on the information above, the net cash provided by(used in) investing activities on the statement of cash flows wouldbe: |
$102,000
$(9,500)
$(19,500)
$34,000
