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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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