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Heels, a shoe manufacturer, Is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment; this Information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $116,000 and Is expected to generate an additional $44,00 In cash flows for five years. A bank will make a $116,000 loan to the company at a 10% Interest rate for this equipment's purchase. Compute the recovery time for both the payback perlod and break-even time. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Break even Payback Period time Compute the recovery time for the payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period

Heels, a shoe manufacturer, Is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment; this Information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $116,000 and Is expected to generate an additional $44,00 In cash flows for five years. A bank will make a $116,000 loan to the company at a 10% Interest rate for this equipment's purchase. Compute the recovery time for both the payback perlod and break-even time. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Break even Payback Period time Compute the recovery time for the payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi expert exact answers needed by making same table as required to put in empty boxes
Heels, a shoe manufacturer, Is evaluating the costs and benefits of new equipment that would custom fit each palr of athletic shoes. The customer would have his or her foot scanned by digital computer equlpment; this Information would be used to cut the raw materlals to provide the customer a perfect fit. The new equlpment costs $116,000 and Is expected to generate an additlonal $44,000 In cash flows for five years. A bank will make a $116,000 loan to the company at a 10% Interest rate for this equipment's purchase. Compute the recovery time for both the payback perlod and break-even time. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Break even Payback Period time Compute the recovery time for the payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period =
Transcribed Image Text:Heels, a shoe manufacturer, Is evaluating the costs and benefits of new equipment that would custom fit each palr of athletic shoes. The customer would have his or her foot scanned by digital computer equlpment; this Information would be used to cut the raw materlals to provide the customer a perfect fit. The new equlpment costs $116,000 and Is expected to generate an additlonal $44,000 In cash flows for five years. A bank will make a $116,000 loan to the company at a 10% Interest rate for this equipment's purchase. Compute the recovery time for both the payback perlod and break-even time. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Break even Payback Period time Compute the recovery time for the payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period =
Break even time Payback Period Compute the recovery time for the break-even time. (Cumulative net cash outflows must be entered with a minus sign. Round your Break-even time answer to 1 decimal place.) Chart Values are Based on: % Cumulative Cash Inflow Present Value Year PV Factor Present Value of Inflow (Outflow) (Outflow) (118,000) x 1.0000 = (118,000) (118,000) 1. 2 %3D 4
Transcribed Image Text:Break even time Payback Period Compute the recovery time for the break-even time. (Cumulative net cash outflows must be entered with a minus sign. Round your Break-even time answer to 1 decimal place.) Chart Values are Based on: % Cumulative Cash Inflow Present Value Year PV Factor Present Value of Inflow (Outflow) (Outflow) (118,000) x 1.0000 = (118,000) (118,000) 1. 2 %3D 4
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