Enerlam Company purchased a machine with an estimated useful life of seven years. The machine will generate cash inflows of P9,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, and assuming the company's discount rate is 10%, what is the purchase price of the machine if the net present value of the investment is P17,000? a. P43,812 b. P26,812 c. P17,000

Q: ezero salvage value. It would offer the following profics to the comp NET PROFIT 68.000 -52.000…

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Q: Multiple Choice

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A: Estimated cash payback period for the machine = Cost of machine / annual net cash flow

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A: Solution: -1 Calculation of the net present value of the investment of the machine.

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A: Formulas: Cash payback period = Cash out flows / Cash inflows

Q: "It is estimated that a certain piece of equipment can save $22145 per year in labor and materials…

A: Annual saving (A) = $22145 r = 15.96% n = 6 years Let X = Justified price today

Q: ul life of 5 years and a salvage value of $5,000. The machine is expected to generate annual net…

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Q: $22,000.

A: The answer is $22000

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A: Payback period = Initial Investment / Annual cash flow

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A: a) Compute the average rate of return:

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Q: The estimated cash payback period for the machine is (round to one decimal point)?

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Q: cash flow

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.