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Henderson

Manufacturing, Inc. has a manufacturing machine that needs attention.

(Click the icon to view additional information.)

Henderson

expects the following net cash inflows from the two options:

(Click the icon to view the net cash flows.)

Henderson

uses straight-line depreciation and requires an annual return of

10%.

	( Click the icon to view Present Value of Ordinary Annuity of $1 table.)
	(Click the icon to view Future Value of $1 table.)
.	(Click the icon to view Future Value of Ordinary Annuity of $1 table.)

Read the requirements

.

1.	Compute the payback, the ARR, the NPV, and the profitability index of these two options.
2.	Which option should Henderson choose? Why?

Score: 0.27 of 2 pts 23 of 23 (23 complete) HW Score: 92.79%, 22.27 of 24 pts %x P26-32A (book/static) Question Help (Click the icon to view Present Value of $1 table.) Henderson Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Henderson expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) (Click the icon to view Future Value of $1 table.) Henderson uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish). Requirements X Net Cash Outflows Net Cash Inflows Year Amount Invested Annual Accumulated 0 $ 1,200,000 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options 2. Which option should Henderson choose? Why? 1 $ 350,000 $ 350,000 2 340.000 690,000 3 270,000 960,000 Print Done 4 200,000 1,160,000 5 130,000 1,290,000 6 130,000 1,420,000 130,000 1,550,000 Enter any number in the edit fields and then click Check Answer. Windows [] Windo ite . Check Answer 6 parts Clear All remaining Score: 0.27 of 2 pts 23 of 23 (23 complete) HW Score: 92.79%, 22.27 of 24 pts %x P26-32A (book/static) Question Help (Click the icon to view Present Value of $1 table.) Henderson Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Henderson expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) (Click the icon to view Future Value of $1 table.) Henderson uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish). Requirements X Net Cash Outflows Net Cash Inflows Year Amount Invested Annual Accumulated 0 $ 1,200,000 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options 2. Which option should Henderson choose? Why? 1 $ 350,000 $ 350,000 2 340.000 690,000 3 270,000 960,000 Print Done 4 200,000 1,160,000 5 130,000 1,290,000 6 130,000 1,420,000 130,000 1,550,000 Enter any number in the edit fields and then click Check Answer. Windows [] Windo ite . Check Answer 6 parts Clear All remaining

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