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Author Question: Carla's Citrus packs and ships high-quality oranges, grapefruit, and other fruit to retailers in the ... (Read 36 times)

mustachegiraffe

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Carla's Citrus packs and ships high-quality oranges, grapefruit, and other fruit to retailers in the U.S.  Carla has been experiencing an increase in demand for its products and is considering the purchase of a new packaging machine to replace the machine currently in use. The new machine will cost $202,500, and installation will require an additional $4,050. The machine has a useful life of 10 years and is expected to have a salvage value of $5,400 at the end of its useful life. The variable cost to operate the new machine is $13.50 per carton compared to the current machine's variable cost of $13.65 per carton. Carla expects to pack 250,000 cartons each year. If the new machine is purchased, Carla will avoid a required $13,500 overhaul of the current machine in three years. The current machine has a market value of $16,200 and will be disposed of.

Required
a.Calculate the net present value of the new packaging machine. Assume that Carla
uses
a 10% discount rate.
b.Do you recommend that Carla purchase the new machine? Why or why not?
c.Assume that Carla has adopted a new 15% discount rate. Do you recommend that
Carla purchase the new machine? Why or why not?


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Marked as best answer by mustachegiraffe on Feb 5, 2023

ALuthy

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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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mustachegiraffe

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Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it


blakcmamba

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Reply 3 on: Yesterday
Excellent

 

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