Net present value-unequal livesDakota Mining Company has two competing proposals: a diamond core drill or a hydraulic excavator. Both pieces of equipment have an initial investment of $552,146. The net cash flows estimated for the two proposals are as folloNet Cash FlowNet Cash FlowHydraulic Excavator$210,000YearDiamond Core Drill1$168,0002150,000195,0003150,000180,0004119,000185,000591,000676,00066,00066,000The estimated residual value of the diamond core drill at the end of Year 4 is $210,000.Present Value of $1 at Compound InterestYear6%10%12%15%20%10.9430.9090.8930.8700.83320.8900.8260.7970.7560.69430.8400.7510.7120.6580.57940.7920.6830.6360.5720.48250.7470.6210.5670.4970.40260.7050.5640.5070.4320.33570.6650.5130.4520.3760.27980.6270.4670.4040.3270.23390.5920.424100.5580.3860.3610.3220.2840.1940.2470.162Determine which equipment should be favored, comparing the net present values of the two proposals and assuming a minimum rate of return of 10%. Use the present value table appearing above.Diamond Core Drill Hydraulic ExcavatorPresent value of net cash flow totalAmount to be investedNet present value

Present Value of Net Cash Flows Diamond Core DrillYearCash FlowPresent Value Factor (10%)Present…

Answered: Net present value-unequal lives Dakota…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The Town of Broomville, along with local arts and athletic groups, decided to erect a new community centre for sports, music, and theatre. The total estimated cost was $18,000,000 in April. Jane Borkus, president and CEO of the largest local industry. Autotech, promised to match every dollar raised through other donors, up to $9,000,000. Both she and the delighted town mayor, Geoff Johns, made the announcement over the local television station and in a joint statement in the town's newspaper. Borkus said the deadline would be 12 months. The following January, the campaign was proceeding extremely well; other donors had pledges $5,500,000 and Borkus presented a cheque for $4,000,000 as Autotech's "down payment and pledge of good will." Unfortunately, in March, Autotech lost its major contract to supply car parts to one of the big three auto manufacturers. Anticipating a large loss at year's end, Borkus withdrew the pledge and asked for the return of the down payment. Broomville will…
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Current Attempt in Progress Joyful Journeys Music School provides private music lessons for elementary students. Its operating costs are as follows: Rent on facilities Advertising Instrument Rent Teaching Instruction Books Other Costs $2,010 per month $534 per month $750 per month $38 per student $5 per student $3 per student Joyful Journeys charges $100 per student per month. Determine the company's break-even point in (1) number of students taught per month and (2) dollars. (1) Break even in number of students taught per month (2) Break even in dollars eTextbook and Media

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