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Present Values: use table 14-b in back of text pages 677.
Alpha Corporation is considering a machine to improve manufacturing production. The machine has a value of $100,000 with no resale value. We are using a discount of 10%. We expect to save $10,000 a year in labor costs with the new machine.
What is the present value?
Alpha Corporation is considering a machine to improve manufacturing production. The machine has a value of $100,000 with no resale value. WE expect a saving of $10,000 per year in direct labor. We are using a 15% discount rate for the firm.
What is the present value?