B240 Final Exam W2024 Question 12 of 13 Kingbird Corporation is considering buying a brand new machine and has gathered the following data: Investment Estimated life Estimated annual cash inflows $104,400 6 years $29,100 Estimated annual cash outflows $10,500 Salvage value for the machine is estimated to be zero. Click here to view the factor table. -/8 III Calculate the net present value of the machine assuming a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg-45 r parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) Net Present Value $ Should the company buy the machine based on your results? SUPPORT
B240 Final Exam W2024 Question 12 of 13 Kingbird Corporation is considering buying a brand new machine and has gathered the following data: Investment Estimated life Estimated annual cash inflows $104,400 6 years $29,100 Estimated annual cash outflows $10,500 Salvage value for the machine is estimated to be zero. Click here to view the factor table. -/8 III Calculate the net present value of the machine assuming a 5% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg-45 r parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) Net Present Value $ Should the company buy the machine based on your results? SUPPORT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:B240 Final Exam W2024
Question 12 of 13
Kingbird Corporation is considering buying a brand new machine and has gathered the following data:
Investment
Estimated life
Estimated annual cash inflows
$104,400
6 years
$29,100
Estimated annual cash outflows
$10,500
Salvage value for the machine is estimated to be zero.
Click here to view the factor table.
-/8
III
Calculate the net present value of the machine assuming a 5% discount rate. (If the net present value is negative, use either a negative
sign preceding the number eg-45 r parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table
provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.)
Net Present Value
$
Should the company buy the machine based on your results?
SUPPORT
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