080 < CO #3 TABLE 4 Present Value of an Annuity of 1 (u) Payments 12% 5% .95238 %L 0.93458 %6 .91743 .96154 .94340 .92593 06006 .89286 .86957 1. 60606 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.62990 3:54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 2. 3 1.88609 1.85941 1.83339 4. 4.45182 4.32948 4.21236 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 6.80169 6.51523 6.24689 5,99525 5.75902 5.53705 5.32825 4.77158 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 5.24214 5.07569 4.91732 6. 6.00205 5.78637 5.58238 8. 7.43533 7.10782 6 8.11090 7.72173 7.36009 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 6.74987 6.42355 5.58315 12 9.38507 8.86325 8.38384 13 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 14 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 15 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 7.36578 6.19823 16 11.65230 10.83777 10.10590 12.16567 11.27407 10.47726 LI 18 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 20. LIT Corp. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding the machine are provided below. Machine Estimates Original Cost $188,000 Estimated Life 8 years Salvage Value Estimated Annual Cash Inflows $40,200 Estimated Annual Cash Outflows $9,860 Calculate the net present value of the machine investment. Assume a 9% discount rate. MacBook Pro Search or type URL V 2$ 9 6. %24 Details | bartleby t7 ses/392418/quizzes/3247888/take 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 8. 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 12 13 14 15 16 LI 18 13.13394 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 12.08532 11.15812 10.33560 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 LIT Corp. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding the machine are provided below. Machine Estimates Original Cost $188,000 Estimated Life 8 years Salvage Value Estimated Annual Cash Inflows $40,200 Estimated Annual Cash Outflows $9,860 Calculate the net present value of the machine investment. Assume a 9% discount rate. O -$20,074 O $6,576 O -$6,576 O $30,340 MacBook Pro G Search or type URL

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
080
< CO
#3
TABLE 4 Present Value of an Annuity of 1
(u)
Payments
12%
5%
.95238
%L
0.93458
%6
.91743
.96154
.94340
.92593
06006
.89286 .86957
1.
60606
1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571
2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323
3.62990 3:54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498
4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216
2.
3
1.88609 1.85941 1.83339
4.
4.45182
4.32948 4.21236
4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448
5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042
6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732
6.80169 6.51523 6.24689 5,99525 5.75902 5.53705 5.32825 4.77158
7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877
5.24214 5.07569 4.91732
6.
6.00205 5.78637 5.58238
8.
7.43533 7.10782
6
8.11090 7.72173 7.36009
11
8.76048 8.30641 7.88687
7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371
7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062
6.74987 6.42355 5.58315
12
9.38507 8.86325 8.38384
13
9.98565
9.39357 8.85268
8.35765 7.90378 7.48690 7.10336
14
10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187
6.62817 5.72448
15
11.11839 10.37966 9.71225
9.10791 8.55948 8.06069 7.60608 7.19087
6.81086 5.84737
9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424
9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716
12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797
7.36578 6.19823
16
11.65230 10.83777 10.10590
12.16567 11.27407 10.47726
LI
18
13.13394 12.08532 11.15812
10.33560 9.60360 8.95012 8.36492 7.83929
13.59033
12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333
7.46944 6.25933
20.
LIT Corp. is considering purchasing a diagnostic machine. The machine would make it possible for
the company to bid on jobs that it currently isn't equipped to do. Estimates regarding the machine
are provided below.
Machine Estimates
Original Cost
$188,000
Estimated Life
8 years
Salvage Value
Estimated Annual Cash Inflows $40,200
Estimated Annual Cash Outflows $9,860
Calculate the net present value of the machine investment. Assume a 9% discount rate.
MacBook Pro
Search or type URL
V
2$
9
6.
Transcribed Image Text:080 < CO #3 TABLE 4 Present Value of an Annuity of 1 (u) Payments 12% 5% .95238 %L 0.93458 %6 .91743 .96154 .94340 .92593 06006 .89286 .86957 1. 60606 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.62990 3:54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 2. 3 1.88609 1.85941 1.83339 4. 4.45182 4.32948 4.21236 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 6.80169 6.51523 6.24689 5,99525 5.75902 5.53705 5.32825 4.77158 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 5.24214 5.07569 4.91732 6. 6.00205 5.78637 5.58238 8. 7.43533 7.10782 6 8.11090 7.72173 7.36009 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 6.74987 6.42355 5.58315 12 9.38507 8.86325 8.38384 13 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 14 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 15 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 7.36578 6.19823 16 11.65230 10.83777 10.10590 12.16567 11.27407 10.47726 LI 18 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 20. LIT Corp. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding the machine are provided below. Machine Estimates Original Cost $188,000 Estimated Life 8 years Salvage Value Estimated Annual Cash Inflows $40,200 Estimated Annual Cash Outflows $9,860 Calculate the net present value of the machine investment. Assume a 9% discount rate. MacBook Pro Search or type URL V 2$ 9 6.
%24
Details | bartleby
t7
ses/392418/quizzes/3247888/take
6.00205
5.78637
5.58238
5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042
6.73274 6.46321
6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732
8.
7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158
8.11090 7.72173 7.36009
7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877
11
8.76048 8.30641 7.88687
7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371
9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062
9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315
10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448
11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737
11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424
12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716
12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797
12
13
14
15
16
LI
18
13.13394 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823
12.08532 11.15812 10.33560
13.59033 12.46221 11.46992
10.59401
9.81815 9.12855 8.51356 7.96333 7.46944 6.25933
LIT Corp. is considering purchasing a diagnostic machine. The machine would make it possible for
the company to bid on jobs that it currently isn't equipped to do. Estimates regarding the machine
are provided below.
Machine Estimates
Original Cost
$188,000
Estimated Life
8 years
Salvage Value
Estimated Annual Cash Inflows $40,200
Estimated Annual Cash Outflows $9,860
Calculate the net present value of the machine investment. Assume a 9% discount rate.
O -$20,074
O $6,576
O -$6,576
O $30,340
MacBook Pro
G Search or type URL
Transcribed Image Text:%24 Details | bartleby t7 ses/392418/quizzes/3247888/take 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 8. 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 12 13 14 15 16 LI 18 13.13394 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 12.08532 11.15812 10.33560 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 LIT Corp. is considering purchasing a diagnostic machine. The machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding the machine are provided below. Machine Estimates Original Cost $188,000 Estimated Life 8 years Salvage Value Estimated Annual Cash Inflows $40,200 Estimated Annual Cash Outflows $9,860 Calculate the net present value of the machine investment. Assume a 9% discount rate. O -$20,074 O $6,576 O -$6,576 O $30,340 MacBook Pro G Search or type URL
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