Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. caine bottling corporation is considering the purc

Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would...

60.1K

Verified Solution

Question

Finance

Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $163,517 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $30,700. Management also believes that the new bottling machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 12%. Click here to view PV table. Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.)

Net Present Value=

How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to 0 decimal places, e.g. 125.)

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

Biology
1.2K views

Retinitis pigmentosa is a genetic disease that causes the breakdown and loss of retinal cells. Retinitis...

Medical Sciences
1.2K views

The total volume of air in Jeffrey’s lungs is 5800 mL. If his inspiratory capacity is...

General Management
1.2K views

Q2 (a) Explain three (3) deadly waste in an organisation (b) Discus how organisation can use the...

Biology
1.2K views

Which sentencebelow does notbelong in a"Narrative" piece?A. Often did I think manyof the inhabitants of...

Biology
1.2K views

In a regressive tax, what occurs the LESS you spend?A. The more the tax amount...

Physics
1.2K views

10 mol of an ideal gas y 1 5 behave as working substance in an...

Accounting
1.2K views

1. Joumalize the following transactions: (Ctick on the icon to view...

Accounting
1.2K views

24. Edwin Holt believed behavior is a response to what? - Drives...

Accounting
1.2K views

What information is usually NOT included on a confirmation of accounts payable? Supplier name and...

Accounting
1.2K views

A ______ is an amount due from another party. Multiple choice question. sale...

Accounting
1.2K views

David expects taxable revenues of $110,333 in the current year. His adjustments to revenues are...

Finance
1.2K views

Question 3 (15 marks): You work for a nuclear research laboratory that is contemplating leasing...