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The Corporation is considering the purchase of a new machine to use in its packing department. The new machine will have an initial cost of $160,000, a useful life of 12 years and a $6000 residual value. The Corporation will realize $15,100 in annual savings for each of the machine's 12-year useful life. Given the Corporation's 5% required rate of return, the new machine will have a net present value (NPV) of: (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1 Periods 3% 4% 5% 10 0.744 0.676 0.614 11 0.722 0.650 0.585 12 0.701 0.625 0.557 13 0.681 0.601 0.530 14 0.661 0.577 0.505 15 0.642 0.555 0.481 Present Value of Annuity of $1 Periods 3% 4% 5% 10 8.530 8.111 7.722 11 9.253 8.760 8.306 12 9.954 9.385 8.863 13 10.635 9.986 9.394 14 11.296 10.563 9.899 15 11.938 11.118 10.380     ($137,173).     ($29,511).     ($22,827).     ($26,169).

The Corporation is considering the purchase of a new machine to use in its packing department. The new machine will have an initial cost of $160,000, a useful life of 12 years and a $6000 residual value. The Corporation will realize $15,100 in annual savings for each of the machine's 12-year useful life. Given the Corporation's 5% required rate of return, the new machine will have a net present value (NPV) of: (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1 Periods 3% 4% 5% 10 0.744 0.676 0.614 11 0.722 0.650 0.585 12 0.701 0.625 0.557 13 0.681 0.601 0.530 14 0.661 0.577 0.505 15 0.642 0.555 0.481 Present Value of Annuity of $1 Periods 3% 4% 5% 10 8.530 8.111 7.722 11 9.253 8.760 8.306 12 9.954 9.385 8.863 13 10.635 9.986 9.394 14 11.296 10.563 9.899 15 11.938 11.118 10.380     ($137,173).     ($29,511).     ($22,827).     ($26,169).

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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  1. The Corporation is considering the purchase of a new machine to use in its packing department. The new machine will have an initial cost of $160,000, a useful life of 12 years and a $6000 residual value. The Corporation will realize $15,100 in annual savings for each of the machine's 12-year useful life. Given the Corporation's 5% required rate of return, the new machine will have a net present value (NPV) of: (Round any intermediary calculations and your final answer to the nearest dollar.)

    Present Value of $1

    Periods 3% 4% 5%
    10 0.744 0.676 0.614
    11 0.722 0.650 0.585
    12 0.701 0.625 0.557
    13 0.681 0.601 0.530
    14 0.661 0.577 0.505
    15 0.642 0.555 0.481

    Present Value of Annuity of $1

    Periods 3% 4% 5%
    10 8.530 8.111 7.722
    11 9.253 8.760 8.306
    12 9.954 9.385 8.863
    13 10.635 9.986 9.394
    14 11.296 10.563 9.899
    15 11.938 11.118 10.380
       

    ($137,173).
       

    ($29,511).
       

    ($22,827).
       

    ($26,169).
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