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Home Q & A Board Other Fields Homework Help Business Accounting
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Kwami Kwami
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7 years ago
Sharon Bullock, the owner of Sandwich Emporium, wants to purchase a sandwich machine to sell panini sandwiches to her customers at $5.00 each. The following estimates are available:
   Initial outlay   $17,000
   Annual cash flow   $ 5,245
   Cost of capital   8%
   Estimated life of the sandwich machine   4 years
   Estimated residual value of the machine   $-0-

Present Value of an Annuity of 1
Periods   8%   9%   10%
1   0.9259   0.9174   0.9091
2   1.7833   1.7591   1.7355
3   2.5771   2.5313   2.4869
4   3.3121   3.2397   3.1699
5   3.9927   3.8897   3.7908

Present Value of 1
Periods   8%   9%   10%
1   0.9259   0.9174   0.9091
2   0.8573   0.8417   0.8264
3   0.7938   0.7722   0.7513
4   0.7350   0.7084   0.6830
5   0.6806   0.6499   0.6209

REQUIRED:
Compute the net present value of the sandwich machine purchase.
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
Author:
Read 181 times
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mourningbirdmourningbird
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#1
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7 years ago
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Kwami Author
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#2
7 years ago
Aha, makes more sense now.
wrote...
#3
7 years ago
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