Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bridgeport industries is considering the purchase

Bridgeport Industries is considering the purchase of new equipment costing $1,243,000 to replace existing equipment...

80.2K

Verified Solution

Question

Accounting

image

Bridgeport Industries is considering the purchase of new equipment costing $1,243,000 to replace existing equipment that will be sold for $188,300. The new equipment is expected to have a $210,000 salvage value at the end of its 6-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 38,900 units annually at a sales price of $27 per unit. Those units will have a variable cost of $15 per unit. The company will also incur an additional $91,900 in annual fixed costs. Click here to view the factor table Calculate the present value of each cash flow assuming an 9% discount rate. For calculation purposes, se 4 dec na places as displayed in the facto able provided and round final answer to O decimal place, e.g. 58,971. Enter negative amounts using a negative sign preceding the number e.g.-58,971 or parentheses e.g.(58,971).) Cash Flow Present Value 1,243,000 Purchase of new equipment $ Salvage of old equipment 188,300 4,574,330 Sales revenue 2,541,143 Variable costs 400,225 Additional fixed costs 118,440 Salvage of new equipment

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

Basic Math
1.2K views

You can buy 5 cans for green beans at the Village Market for 2 70...

Medical Sciences
1.2K views

500 word response to what are the advantages and disadvantages of conducting sex research in cyberspace....

Advance Math
1.2K views

List the three types of radius of convergence. Give an example of each type  

Physics
1.2K views

A conducting ring is placed in a uniform magnetic field with its plane perpendicular to...

Basic Math
1.2K views

In a linguistics course the professor asked the students to list all the languages they...

Algebra
1.2K views

The functions f and g are defined as f x x 4 g x x...

Accounting
1.2K views

Sandhill Company reports the following for the month of June. Units Unit Cost Total Cost...

Accounting
1.2K views

15. A corporation issues 8,000 shares of its $1 par value common stock to provide...

Accounting
1.2K views

Last year, PJ's Ice Cream Parlors, Inc. reported an ROE = 12.1%. The firm's debt...

Accounting
1.2K views

Because Natalie has been so successful with Cookie Creations and Curtis has been just as...

Accounting
1.2K views

Calculate B.E.P. from the following Information: (a) Sales $ 100,000, Variable Cost $, 50,000, Profit...

Accounting
1.2K views

19-Edna Robson is a marketing manager for Blossom Cosmetics in Lethbridge, Alberta. An annual salary...