MU Acct 2037 Ch 20 HW Solution

MU Acct 2037 Ch 20 HW Solution - 20-19(a)Present value =...

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Unformatted text preview: 20-19(a)Present value = $500 x 0.5674 = $283.70(b)Present value = $100 x 3.6048 = $360.48(c)Present value = ($300 x 0.7118) + ($400 x 0.5674) = $213.54 + $226.96 = $440.50(d)Present value = $60 x 5.6502 = $339.0120-120-25(1)Present value of (net) cash receipts: Annual net savings $4,500ax 4.1925 = $18,866.25 Residual value $200x 0.1615 = 32.30 Total $18,898.55Investment ( 20,000.00) Net present value ($ 1,101.45)a$8,000 - $3,200 - $300No, this capital expenditure is not acceptable.(Its net present value is negative.)(2)If the purchase price of the packaging machine were less than $18,898.55, this capital expenditure would be acceptable.20-220-27(1)Proposal A:Present value of cash receipts: $3,600 x 3.2743 = $11,787.48Investment (10,000.00) Net present value $ 1,787.48 $ 1,787....
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This note was uploaded on 04/20/2008 for the course ACCT 2037 taught by Professor Pres during the Spring '08 term at Missouri (Mizzou).

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MU Acct 2037 Ch 20 HW Solution - 20-19(a)Present value =...

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