Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bassinger company plans to buy a new machine for $

Bassinger Company plans to buy a new machine for $60,000 that will have an estimated...

90.2K

Verified Solution

Question

Accounting

Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of 3 years and no salvage value. The expected cash inflow is $24,000 annually. Bassinger Company has a cost of capital of 12%. Given that the present value of $1 after 3 periods at 12% is 0.71178, and the present value of an annuity for 3 periods at 12% is 2.40183, the profitability index is: 0.04 1.96 1.04 0.28 0.96
image
Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of 3 years and no salvage value. The expected cash infliow is 52,000 annually Bassinger Company has a cost of capital of 12%. Given that the present value of $1 after 3 periods at 12% is 0.71178 , and the present value of an annuity for 3 peeriods at 12% ti 2.40183, the profitability index is: 0.04 1.96 1.04 0.28 0.96

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students