Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. citrus enterprises is upgrading its fruit washing/

Citrus Enterprises is upgrading its fruit washing/separating machine. Citrus Enterprises has narrowed the decision down...

80.2K

Verified Solution

Question

Accounting

Citrus Enterprises is upgrading its fruit washing/separating machine. Citrus Enterprises has narrowed the decision down to two machines: Machine A and Machine B. Pertinent information about each machine includes: (8 Marks)

Machine A Machine B

Investment $450,000 $650,000

Useful life (years) 10 10

Estimated annual net cash inflows for useful life $75,000 $120,000

Residual value $30,000 $30,000

Depreciation method straight-line straight-line

Required rate of return 10% 12%

Present Value of $1

Periods

10%

12%

9

0.424

0.361

10

0.386

0.322

11

0.350

0.287

Present Value of Annuity of $1

Periods

10%

12%

9

5.759

5.328

10

6.145

5.650

11

6.495

5.938

Required:

  1. Calculate the net present value of Machine A.
  2. Calculate the net present value of Machine B.
  3. Using the net present value method, which machine should the company select if it can select only one investment?

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

Torres Company accumulates the following summary data for the year ending December 31 2020 for...

Finance
1.2K views

Do you Budget? Why or why not? what are the benefits of Budgeting? And Research the rates for...

Geometry
1.2K views

JK is tangent to circle O at point J and JE is a secant line...

Geometry
1.2K views

In Exercises 13 to 18 use only the given information to state the reason why...

Basic Math
1.2K views

Espa ol The pie chart below shows how the annual budget for the Heavy Equipment...

Basic Math
1.2K views

Phyllis went to the mall and saw a massage chair that she would have to...

Statistics
1.2K views

There are more than 400 students in a biology class The average score on midterm...

Calculus
1.2K views

Listen Determine the linear approximation function L x forf x tan x when a 0...

Accounting
1.2K views

prepare t accounts September Transactions Date Transaction Description September 1 Started a plumbing repair business...

Finance
1.2K views

Raygun County had outstanding $35 million in Series 1998 general obligation bonds on June 30,...

Accounting
1.2K views

Anyone who has completed the Payroll Accounting Bieg 2019 Chapter 7 payroll project, please help!!...

Accounting
1.2K views

Which of the following is NOT an example of 'cash and cash equivalents?' money orders...