EA13. LO 11.3 Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?
EA13. LO 11.3 Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:EA13. LO 11.3 Julio Company is considering the purchase of a new bubble packaging
machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for
$50,000 at the end of the period, what is the present value of the machine investment at a 9%
interest rate with savings realized at year end?
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With a PV of annual savings at $128353.15 and a total PV of machine investment at $149473.69...using excel, what would the PV of final sale be?
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Is there an excel table showing how to use functions?
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