Croce, Inc., is investigating an investment in equipment that would have a useful life of...
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Croce, Inc., is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 11% in its capital budgeting. The net present value of the investment, excluding the salvage value, is -$580,353. (lgnore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. How large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 6 years. The company uses a discount rate of 13% in its capital budgeting. The net present value of the investment, excluding the intangible benefits, is -$475,200. (lgnore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. How large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $30,0o0 and will have a 6-year useful life and a $4,200 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $32,200 per year. The cost of these prescriptions to the pharmacy will be about $25,400 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (lgnore income taxes.)
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