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Author Question: Golden Corporation is evaluating the purchase of an elaborate hydraulic lift system for all of its ... (Read 78 times)

cmoore54

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Golden Corporation 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 C23 Model and the Q12 Model.  Financial data about the two choices follows.

C23Q12
Investment $360,000 $165,000
Useful life (years)88
Estimated annual net cash inflows for useful life $80,000 $25,000
Residual value $20,000 $12,000
Depreciation methodstraight-linestraight-line
Required rate of return14%10%

Required:
1.  Calculate the net present value of the Q12 Model.
2.  Calculate the net present value of the C23 Model.
3.  Using the net present value method, which alternative should Golden Corporation select?


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Marked as best answer by cmoore54 on Jan 5, 2020

mohan

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cmoore54

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Reply 2 on: Jan 5, 2020
Gracias!


laurnthompson

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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