Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oriole enterprises is considering investing in a n

Oriole Enterprises is considering investing in a new packing machine. The new machine will provide...

80.2K

Verified Solution

Question

Accounting

Oriole Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inflows of $10824 for 5 years. The cost of the machine is $37224 and it can be sold at the end of its 5-year useful life for $5984. Oriole's required rate of return is 10%.
\table[[Type of cash flow,Periods,Interest rate,Factor],[PV of $1,5,10%,0.6209],[FV of $1,5,10%,1.6105],[PV ordinary annuity,5,10%,3.7908],[FV ordinary annuity,5,10%,6.1051],[PV annuity due,5,10%,4.1699]]
What is the machine's net present value? (round to the nearest dollar)
$7523
$10917
$14539
image

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