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Author Question: Miami Marine Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of ... (Read 142 times)

maychende

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on: Jan 5, 2020
Miami Marine Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair.  The company has narrowed their choices down to two: the B14 Model and the F54 Model.  Financial data about the two choices follows:

​B14 ModelF54 Model
Investment $320,000 $240,000
Useful life (years)88
Estimated annual net cash inflows for useful life $75,000 $40,000
Residual value $30,000 $10,000
Depreciation methodStraight-lineStraight-line
Required rate of return14%10%


The present value of future cash inflows from the F54 Model is closest to
◦ $(21,930).
◦ $190,230.
◦ $218,070.
◦ $213,400.
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by maychende on Jan 5, 2020

Li Jun

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Reply #1 on: Jan 5, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jace

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Reply #2 on: Jan 5, 2020
Miami Marine Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair.  The company has narrowed their choices down to two: the B14 Model and the F54 Model.  Financial data about the two choices follows:

​B14 ModelF54 Model
Investment $320,000 $240,000
Useful life (years)88
Estimated annual net cash inflows for useful life $75,000 $40,000
Residual value $30,000 $10,000
Depreciation methodStraight-lineStraight-line
Required rate of return14%10%


The present value of future cash inflows from the B14 Model is closest to
◦ $218,070.
◦ $410,655.
◦ $358,455.
◦ $38,455.


Ahnyah

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Reply #3 on: Jan 5, 2020
$358,455.


xclash

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Reply #4 on: Jan 5, 2020
Miami Marine Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair.  The company has narrowed their choices down to two: the B14 Model and the F54 Model.  Financial data about the two choices follows:

​B14 ModelF54 Model
Investment $320,000 $240,000
Useful life (years)88
Estimated annual net cash inflows for useful life $75,000 $40,000
Residual value $30,000 $10,000
Depreciation methodStraight-lineStraight-line
Required rate of return14%10%


Using the net present value model, which alternative should Miami Marine Enterprises select?
◦ The F54 Model should be selected.
◦ The B14 Model should be selected.
◦ Both investments should be selected.
◦ Neither investment should be selected.


joewallace

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Reply #5 on: Jan 5, 2020
The B14 Model should be selected.


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