Sub : AccountingPls answer very faast.I ll upvote. Thank You TelUse the following to answer questions 93-95:(Ignore income taxes in this problem.) Carlson Manufacturing has some equipment that nto be rebuilt or replaced. The following information has been gathered relative to thisdecision:Purchase cost newRemaining book value..Cost to rebuild nowMajor maintenance at the end of 3 yearsAnnual cash operating costs.Salvage value at the end of 5 years.Salvage value now.......NewPresentEquipment Equipment$48,000A) $(48,000)B) $(39,000)C) $(41,000)D) $(37,000)$50,000$30,000$25,000$8,000$10,000$3,000$9,000Carlson uses the total cost approach and a discount rate of 12%. Regardless of which option ischosen, rebuild or replace, at the end of five years Carlson Manufacturing plans to close itsdomestic manufacturing operations and to move these operations to foreign countries.A) $(28,840)B) $(19,160)C) $(14,420)D) $(36,050)$5,000$8,000$7,00093. If the new equipment is purchased, the present value of all cash flows that occur nowis:Answer: B Level: Easy LO: 194. If the new equipment is purchased, the present value of the annual cash operating costsassociated with this alternative is:Answer: A Level: Medium LO: 195. If the equipment is rebuilt, the present value of all cash flows that occur now is:A) $(55,000)B) $(25,000)C) $(16,000)D) $(23,000)Answer: B Level: Easy LO: 1ChapUse th(IgnedesiropticOpti$60$20casThe$31OFth

Present Values of Cash Flows Present Value is a concept used in finance to determine the current…

Use the following to answer questions (Ignore income taxes in this problem.) Carlson Manufacturing has some equipment that to be rebuilt or replaced. The following information has been gathered relative to this decision: Purchase cost new. Remaining book value.... Cost to rebuild now. Major maintenance at the end of 3 years Annual cash operating costs. Salvage value at the end of 5 years. Salvage value now.... Present New Equipment Equipment $50,000 $48,000 $30,000 $25,000 $8,000 $10,000 $3,000 $9,000 $5,000 $8,000 $7,000 Carlson uses the total cost approach and a discount rate of 12%. Regardless of which optic chosen, rebuild or replace, at the end of five years Carlson Manufacturing plans to close domestic manufacturing operations and to move these operations to foreign countries.