BBCanning Machine2Monster Beverage is considering purchasing a new canning machine.This machine costs $3,500,000 up front.Required return = 12.0%YearCash Flow0$-3,500,0001$1,000,0002$1,200,0003$1,300,0004$900,000What is the value of Year 3 cash flow discountedto the present?5$1,000,000Enter a response then click Submit below$0Submit

To determine the value of Year 3 cash flow discounted to the present, we will use the Present Value…

Answered: B B Canning Machine 2 Monster Beverage…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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A bookstore is planning to purchase an automated inventory/remote marketing system, which includes an upgrade to a more sophisticated cash register system. The package has an initial investment cost of $360,000. It is expected to generate $144,000 of annual cash flows, reduce costs and provide incremental cash revenues of $326,000, and incur incremental cash expenses of $200,000 annually. What is the payback period and accounting rate of return (ARR)?
monster beverage is considering purchasing a new canon machine this machine cost $3,500,000 up front. required return =10.7%. cash FLow year 0 -3,500,000 first year $1 million dollars second year 1,200,000 3.1,200,000 year three 1,300,000 4. 900,000 fifth year 1,000,000 . what is the value of year 3 cash flow discounted to the present?
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The Pan American Bottling Company is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $57,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 4 5 Cash Flow $ 22,000 24,000 26,000 32,000 14,000 a. If the cost of capital is 11 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Net present value b. What is the internal rate of return? Note: Do not round intermediate calculations, Enter your answer as a percent rounded to 2 decimal places. Intemal rate of return %
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The Pan American Bottling Company is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $69,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 4 5 Cash Flow $ 29,000 29,000 29,000 34,000 20,000 a. If the cost of capital is 13 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Net present value b. What is the internal rate of return? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Internal rate of return c. Should the project be accepted? O Yes O No %
Hint: this is the sum of each future year's discounted cash flows. What is the present value of all future cash flows? Note: do not include value of Year 0 cash flow. Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return = 11.6% Year Cash Flow Discounted Cash Flow 0 $-3,500,000 $-3,500,000 1 $1,000,000 $896,057 2 $1,200,000 $963,503 3 $1,300,000 $935,300 4 $900,000 $580,211 5 $1,000,000 $577,669
Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 8%/year. Solve, a. What is the discounted payback period for each investment? b. Which oven should Octavia Bakery purchase if they wish to minimize the DPBP?
Q5
A company is planning to purchase a new machine to expand its production. The machine is costing OMR 6681. The following cash inflows are expected to come for the machines. Calculate Net Present Value for Machine A using NPV given the rate of discounting to be 6.08% Machine A Years 3901 1 2200 2 2500 3 3600 4 اخترأحد الخيارات a. None of the options O b. 211.29 O c. 3888.70 O d. 2112.29 O e. 17250.70 O
f

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