6Check my work16.7pointseBookPrintReferencesHenrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost$137,320, including freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net ofexpenses, by $40,000 per year. The machine would have a five-year useful life and no salvage value.Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.Required:1. What is the machine's internal rate of return? (Round your answer to the nearest whole percentage, i.e. 0.123 should beconsidered as 12%.)2. Using a discount rate of 14%, what is the machine's net present value? Interpret your results.3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $34,390 per year. Underthese conditions, what is the internal rate of return? (Round your answer to the nearest whole percentage, i.e. 0.123 should beconsidered as 12%.)1. Internal rate of return2. Net present value3. Internal rate of return14 %010 %

Henrie's Drapery Service is contemplating the acquisition of a new machine designed for cleaning and…

Answered: 6 Check my work 16.7 points eBook Print…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

6 Franklin Moran manages the cutting department of Greene Gibson Company. He purchased a tree-cutting machine on January 1, year 2, for $430,000. The machine had an estimated useful life of 5 years and zero salvage value, and the cost to operate it is $90,000 per year. Technological developments resulted in the development of a more advanced machine available for purchase on January 1, year 3, that would allow a 35 percent reduction in operating costs. The new machine would cost $270,000 and have a 4-year useful life and zero salvage value. The current market value of the old machine on January 1, year 3, is $210,000, and its book value is $344,000 on that date. Straight-line depreciation is used for both machines. The company expects to generate $233,000 of revenue per year from the use of either machine. Required a. Recommend whether to replace the old machine on January 1, year 3. b. Prepare income statements for four years (year 3 through year 6) assuming that the old machine is…
Current Attempt in Progress The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 0 1 2 3 4 5 -$15,000 -$6,500 -$6,500 -$6,500 -$6,500 -$6,500+ $0 -$19,000 -$5,600 -$5,600 -$5,600 -$5,600 -$5,600+ $2,000 -$24,000 -$4,000 -$4,000 -$4,000 -$4,000 -$4,000+ $5,000
OUESTION 6Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for S18, 000 . The asset has a 6 - year life, will produce a cash flow of S4, 700 in the first year, S5, 100 in the second year, S5, 500 in the third year. S5, 900 in the fourth year, 6, 200 in the fifth year, and S6, 400 in the sixth year. The cost of capital is 10% . What is the project's internal Rate of Retum (IRR) ? A 19.44 % B 017.86% C 24.73%C O D.20.260/0 0 E. 31.25%
Explansion Project: ABC is planning to buy a new heavy duty printing machine. You were hired to assist KFUPM on this decision. So you gathered the following information. The new machine has a life of 3 years. New Machine: Life of machine: 3 years The cost of the new machine is SAR 1,134 The machine will increase the gross profit every year by SAR 314 The market value of the machine when sold at the end of its life is SAR 191 If replaced, then the net working capital (NOWC) will increase every year by SAR 22 ABC will recover all investments in working capital at the end of the new machine's life (after 3 years). WACC is 9.49% Tax rate is 40% ABC uses straight-line Depreciation. Calculate the follwoing: Notes: 1. Use 2 Decimals
OUESTION 6Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for S18, 000 . The asset has a 6 - year life, will produce a cash flow of S4, 700 in the first year, S5, 100 in the second year, S5, 500 in the third year. S5, 900 in the fourth year, 6, 200 in the fifth year, and S6, 400 in the sixth year. The cost of capital is 10% . What is the project's internal Rate of Retum (IRR) ? A 19.44 % B 017.86% C 24.73%C O D.20.260/0 0 E. 31.25%
jlp.3
None
eBook Differential Analysis Report for Machine Replacement White Noise Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $57,900, the accumulated depreciation is $23,200, its remaining useful life is five years, and its residual value is zero. A proposal was made to replace the present manufacturing procedure with a fully automatic machine that will cost $109,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on current and proposed operations: CurrentOperations ProposedOperations Sales $183,500 $183,500 Direct materials $62,500 $62,500 Direct labor 43,400 14,500 Power and maintenance 4,100 6,900 Taxes, insurance, etc. 1,400 4,800 Selling and administrative expenses 43,400 43,400 Total expenses…
Please help me
Please dont provide solution image based thanx
pm.3
Do not give solution in image

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS