Crane 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 $250,200 Estimated life 10 years Salvage value $30,200 Estimated annual cash inflows $45,100 Estimated annual cash outflows $10,100 Calculate the net present value and profitability index for Machine C. Use an 8% discount rate.

Crane 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 $250,200 Estimated life 10 years Salvage value $30,200 Estimated annual cash inflows $45,100 Estimated annual cash outflows $10,100 Calculate the net present value and profitability index for Machine C. Use an 8% discount rate.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.15E

See similar textbooks

		Machine C
Original cost		$250,200
Estimated life		10 years
Salvage value		$30,200
Estimated annual cash inflows		$45,100
Estimated annual cash outflows		$10,100

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