e to enter cengagenow h X x My Home CengageNOWv2| Online teachin x +. Assignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=D&inprogress%3Dfalse eBook Show Me How Calculator Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $39,000. The manager believes that the new investment will result in direct labor savings of $13,000 per year for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 10% 12% 15% 20% 0,943 0.909 0.893 0.870 0.833 2. 1.833 1.736 1.690 1.626 1,528 2.673 2.487 2.402 2.283 2.106 4. 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 7. 5.582 4.868 4.564 4.160 3.605 8. 6.210 4.968 4,487 3.837 6. 6.802 5.759 5.328 4,772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. What is the payback period on this project? years, b. What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar. Net present value
e to enter cengagenow h X x My Home CengageNOWv2| Online teachin x +. Assignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=D&inprogress%3Dfalse eBook Show Me How Calculator Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $39,000. The manager believes that the new investment will result in direct labor savings of $13,000 per year for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 10% 12% 15% 20% 0,943 0.909 0.893 0.870 0.833 2. 1.833 1.736 1.690 1.626 1,528 2.673 2.487 2.402 2.283 2.106 4. 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 7. 5.582 4.868 4.564 4.160 3.605 8. 6.210 4.968 4,487 3.837 6. 6.802 5.759 5.328 4,772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. What is the payback period on this project? years, b. What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar. Net present value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Could you help me find the blanks
![e to enter cengagenow h X
x My Home
CengageNOWv2| Online teachin x
+.
Assignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=D&inprogress%3Dfalse
eBook
Show Me How
Calculator
Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations
The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost
$39,000. The manager believes that the new investment will result in direct labor savings of $13,000 per year for 10 years.
Present Value of an Annuity of $1 at Compound Interest
Year
10%
12%
15%
20%
0,943
0.909
0.893
0.870
0.833
2.
1.833
1.736
1.690
1.626
1,528
2.673
2.487
2.402
2.283
2.106
4.
3.465
3.170
3.037
2.855
2.589
4.212
3.791
3.605
3.353
2.991
4.917
4.355
4.111
3.785
3.326
7.
5.582
4.868
4.564
4.160
3.605
8.
6.210
4.968
4,487
3.837
6.
6.802
5.759
5.328
4,772
4.031
10
7.360
6.145
5.650
5.019
4.192
a. What is the payback period on this project?
years,
b. What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar.
Net present value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09a47bce-0866-44bd-aba5-71ef106df8d3%2F3446eecd-6642-45c0-897a-ac5840bb8cd1%2Fytwd9y9.jpeg&w=3840&q=75)
Transcribed Image Text:e to enter cengagenow h X
x My Home
CengageNOWv2| Online teachin x
+.
Assignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=D&inprogress%3Dfalse
eBook
Show Me How
Calculator
Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations
The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost
$39,000. The manager believes that the new investment will result in direct labor savings of $13,000 per year for 10 years.
Present Value of an Annuity of $1 at Compound Interest
Year
10%
12%
15%
20%
0,943
0.909
0.893
0.870
0.833
2.
1.833
1.736
1.690
1.626
1,528
2.673
2.487
2.402
2.283
2.106
4.
3.465
3.170
3.037
2.855
2.589
4.212
3.791
3.605
3.353
2.991
4.917
4.355
4.111
3.785
3.326
7.
5.582
4.868
4.564
4.160
3.605
8.
6.210
4.968
4,487
3.837
6.
6.802
5.759
5.328
4,772
4.031
10
7.360
6.145
5.650
5.019
4.192
a. What is the payback period on this project?
years,
b. What is the net present value, assuming a 10% rate of return? Use the table provided above. Round to the nearest whole dollar.
Net present value
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education