answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Phoenix [80]
2 years ago
12

Michaels, Inc., purchased a machine for $75,000. The machine has a useful life of five years and no salvage value. Straight-line

depreciation is to be used. The machine is expected to generate cash flow from operations, net of income taxes, of $25,000 in each of the five years. Michaels' expected rate of return is 10%. Information on present value factors is as follows:
Period Present Value of $1 at 10% Present value of ordinary annuity of $1 at 10%
1 0.90909 0.90909
2 0.82645 1.73554
3 0.75132 2.48685
4 0.68301 3.16986
5 0.62092 3.79079

What would be the net present value?
Please provide step by step explications.
Thanks!
Mathematics
1 answer:
lara31 [8.8K]2 years ago
8 0

Answer:

$19,769.75

Step-by-step explanation:

The net present value of the machine is the present value of cash inflows minus the initial cost of the machine of $75,000.

The present value of the cash inflows states the future cash flows in today's equivalence by multiplying each year's cash inflows by its discounting factor(the present value of ordinary annuity of $1 of 10% for 5 years which is 3.79079)

net present value=($25,000*3.79079)-$75,000

                             =$94,769.75 -$75,000=$19,769.75  

You might be interested in
A calculator has 50 keys in five colors:gray,black,blue,yellow,and green.There are 6 gray keys for every 7 blue keys.write the p
Akimi4 [234]
A ratio is written in the form a : b. In this case, there are 6 gray keys for every 7 blue keys. So the ratio for gray to blue keys would be 6:7. 
Since 6 and 7 don't have common factors, the ratio 6:7 cannot be simplified further. 
So the ratio for gray to blue keys is 6:7.

7 0
2 years ago
Toby is making a picture graph. each picture of a book is equal to 2 bookso he has read. the row for month 1 has 3 pictures of b
lozanna [386]
It has to be nine because 2 times 3 is 9
8 0
2 years ago
Read 2 more answers
During the early 20th century, in what way was the radio better than the phonograph in encouraging the concept of crosspollinati
ololo11 [35]

C. Phonograph were inferior in sound quality.

Step-by-step explanation:

Researches have shown that plants respond to the sounds of their pollinator.

Some plants begin to produce a greater amount of nectar and some begin to vibrate to attract the attention of the pollinators towards them.

Greater the intensity of the sound of the pollinator, the faster the reaction will be.

Phonographs have a sound of lower intensity when compared to the intensity of sound produced by the radio.

Thus the radio was better than the phonograph in encouraging the concept of cross-pollination.

6 0
2 years ago
I have 30 ones 2thousands 4hundred thousands , 60 tens and 100 hundreds what number am I ?
viva [34]

Answer:

Step-by-step explanation:

Units = 30

Thousands = 2,000

Hundreds of Thousands = 400,000

Tens = 60

Hundreds = 100

HTHHTU

400,000

    2,000

       100

         60

<u>          30</u>

<u>402,190</u>

7 0
2 years ago
Read 2 more answers
Why is the absolute value used to find distances on a coordinate​ plane? Choose the correct answer below.
Vedmedyk [2.9K]

Answer: B

Step-by-step explanation:

6 0
2 years ago
Read 2 more answers
Other questions:
  • Jason has 75 feet of wallpaper border. He wants to put up a wallpaper border around his rectangular bed room that measures 12 fe
    7·2 answers
  • Which graph correctly solves the system of equations below? y = −x2 − 1 y = 2x2 − 4 (6 points)
    6·2 answers
  • The warehouse already has 27 pallets of stock waiting to be unloaded, and the delivery van arrives with another 8. The warehouse
    10·1 answer
  • The measure of an angle is 62.9 What is the measure of a complementary angle?
    5·1 answer
  • A barrel in Jim's yard contains 60 gallons of water. Water leaks out of the barrel at a rate of 1 gallon every 10 minutes. Creat
    11·2 answers
  • The zoo sold 250 admission tickets on Tuesday. Some of the tickets were child tickets and the rest were adult tickets. A child's
    12·1 answer
  • Which graph shows a rate of change of one-half between –4 and 0 on the x-axis? On a coordinate plane, a straight line with a pos
    13·1 answer
  • What is the product of 3a + 5 and 2a2 + 4a – 2?
    13·1 answer
  • Mary spent $45 at the mall. She bought lunch for $9. She bought 3 shirts at
    13·1 answer
  • What is the sum of 9.8 and 573.54
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!