The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year Income from Operations Net Cash Flow 1 $100,000 $180,000 2 40,000 120,000 3 40,000 100,000 4 10,000 90,000 5 10,000 120,000 The net present value for this investment is: Selected Answer: Correct1. Negative $16,170 Correct Answer: Correct1. Negative $16,170
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Joshua Scott invests $40,000 into his new business. How would this transaction be entered in the journal in good form? a. Joshua Scott, Loan40,000 Cash40,000 Invested cash in business. b.
Answers (1)
The actual cash received from cash sales was $38,566, and the amount indicated by the cash register total was $38,583. Journalize the entry to record the cash receipts and cash sales. If an amount box does not require an entry, leave it blank.
Answers (1)
A commercial oven with a book value of $67,000 has an estimated remaining 5 year life. A proposal is offered to sell the oven for $8,500 and replace it with a new oven costing $110,000. The new machine has a 5-year life with no residual value.
Answers (1)
Taylor takes her employees' opinions into consideration via reasoning and discussion when making departmental decisions. Which of the following answers best describe Taylor's experience with her role models, also known as parental authority? A.
Answers (1)
The principle of increasing marginal opportunity cost states that the more resources devoted to any activity, the _ the payoff to devoting additional resources to that activity. a. smaller b. greater c. proportional d. more instant
Answers (1)
New Questions in Business
Which country has experienced a doubling of its diabetes rate in the past 4 decades?
Answers (1)
One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.
Answers (1)
Mike gets angry because Ben made a better grade on a test than he did. They get into an argument, and Mike takes a swing at Ben intending to hit him. Ben shoves Mike in order to avoid the blow.
Answers (1)
A company facing an interest rate of 8% must choose among projects offering the following four-year cash flows.
Answers (1)
Natalie has an easement to drive across Donald's road. Which of the following circumstances would terminate this easement? A. Sale of Natalie's propertyB. Sale of Donald's propertyC. Revocation of the easement by DonaldD.
Answers (1)