GB519 Rayburn Industries is evaluating the investment
Question # 00354238
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Updated on: 08/05/2016 07:13 AM Due on: 08/05/2016
Exercise 3
Rayburn Industries is evaluating the investment of $143,200 in a new packing machine that
should provide annual cash operating inflows of $29,650 for 6 years. At the end of 6 years, the
packing machine will be sold for $5,370. Rayburn’s required rate of return is 7%.
(a)
What is the machine’s net present value? (Round present value factor calculations to 4
decimal places, e.g. 1.2512 and final answer to 0 decimal places e.g. 58,971.)
$
Net present value
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Rayburn Industries is evaluating the investment of $143,200 in a new packing machine that
should provide annual cash operating inflows of $29,650 for 6 years. At the end of 6 years, the
packing machine will be sold for $5,370. Rayburn’s required rate of return is 7%.
(a)
What is the machine’s net present value? (Round present value factor calculations to 4
decimal places, e.g. 1.2512 and final answer to 0 decimal places e.g. 58,971.)
$
Net present value
Attempts: 0 of 1
used
SAVE FOR
SUBMIT
LATER
ANSWER
-
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Solution: GB519 Rayburn Industries is evaluating the investment