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Author Question: Braxton Manufacturing is considering the purchase of new computerized equipment. The machine costs ... (Read 65 times)

Deej

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Question 1

Which of the following does not use interest expense as a component of amounts in its computations?
◦ Net present value using tables
◦ Net present value using Excel
◦ Internal rate of return
◦ Required rate of return

Question 2

Braxton Manufacturing is considering the purchase of new computerized equipment. The machine costs $85,000 and would generate $22,000 in annual cost savings over its 5-year life. At the end of 5 years, the equipment would have a $5,000 salvage value. Braxton's required rate of return is 12%. Using the interest tables, the machine's net present value is nearest
◦ ($2,857).
◦ $79,306.
◦ ($5,694).
◦ $110,000.


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Marked as best answer by Deej on Feb 5, 2023

ludadtpb

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Deej

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)


pratush dev

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

 

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