× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
c
5
j
5
a
5
L
5
f
5
j
5
D
4
k
4
y
4
t
4
h
4
l
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
dxpayne dxpayne
wrote...
Posts: 930
Rep: 1 0
6 years ago
What is the net present value (rounded to the nearest thousand) of the investment assuming the required rate of return is 10 percent? Would Hawkeye Cleaners want to purchase the new machine?
A) $112,000; yes
B) $52,000; yes
C) $(52,000); no
D) $(67,000); no
E) $127,000; yes
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 111 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
A
Explanation:  A) CF 0 = -$200,000 + $30,000 - $60,000 = -$230,000
CF 1 = $50,000; PV = $45,454.55
CF 2 = $150,000; PV = $123,966.94
CF 3 = $150,000 + $20,000 + $60,000 = $230,000; PV = $172,802

NPV = -$230,000 + $342,224 = $112,224
Without mathematics, there's nothing you can do. Everything around you is mathematics. Everything around you is numbers.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  723 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 361
  
 281
  
 1124
Your Opinion
What's your favorite math subject?
Votes: 315
Previous poll results: Which country would you like to visit for its food?