Angler Corp. did some further research and found one other possible machine that would produce the same type of production efficiencies. The information regarding Machine C is below: Machine C Original cost $250,000 Estimated life 10 years Salvage value $30,000 Estimated annual cash inflows $45,000 Estimated annual cash outflows $10,000 Calculate the net present value and profitability index for Machine C. Use an 8% discount rate. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 2 decimal places e.g. 589.71. Enter negative amounts using either a negative sign preceding the number eg. -45.35 or parentheses eg. (45.35).) Net present value $ Profitability index
Angler Corp. did some further research and found one other possible machine that would produce the same type of production efficiencies. The information regarding Machine C is below: Machine C Original cost $250,000 Estimated life 10 years Salvage value $30,000 Estimated annual cash inflows $45,000 Estimated annual cash outflows $10,000 Calculate the net present value and profitability index for Machine C. Use an 8% discount rate. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 2 decimal places e.g. 589.71. Enter negative amounts using either a negative sign preceding the number eg. -45.35 or parentheses eg. (45.35).) Net present value $ Profitability index
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Angler Corp. did some further research and found one other possible machine that would produce the same type of production
efficiencies. The information regarding Machine C is below:
Machine C
Original cost
$250,000
Estimated life
10 years
Salvage value
$30,000
Estimated annual cash inflows
$45,000
Estimated annual cash outflows
$10,000
Calculate the net present value and profitability index for Machine C. Use an 8% discount rate. (Round present value factor
calculations to 5 decimal places, eg. 1.25124 and the final answer to 2 decimal places e.g. 589.71. Enter negative amounts using either a
negative sign preceding the number eg. -45.35 or parentheses eg. (45.35).)
Net present value
$
Profitability index
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