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Net present value method The following data are accumulated by Waiola Company in evaluating...

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Accounting

Net present value method
The following data are accumulated by Waiola Company in evaluating the purchase of $112,700 of equipment, having a 4-year useful life:
Present Value of $1 at Compound Interest
Present value of net cash flow
Amount to be invested
Net present value
b. Would management be likely to look with favor on the proposal? Make-or-buy decision
Differential Analysis
Make (Alt.1) or Buy (Alt.2) Carrying Case
May 31
b. Assuming there were no better alternative uses for the spare capacity, it would
to manufacture the carrying cases. Fixed factory overhead is
to this decision.Average rate of return, cash payback period, net present value method for a service company
Compute the following:
a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place.
%
b. The cash payback period.
Present value of annual net cash flows s
Amount to be invested
Net present value
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