Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sheridan inc. is considering purchasing equipment

Sheridan Inc. is considering purchasing equipment costing $33000 with a 7-year useful life. The equipment...

70.2K

Verified Solution

Question

Accounting

image

Sheridan Inc. is considering purchasing equipment costing $33000 with a 7-year useful life. The equipment will provide cost savings of $8000 and will be amortized using the straight-line method over its useful life with no salvage value. Sheridan Inc.requires a 8% rate of return. What is the approximate profitability index associated with this equipment? Present Value of an Annuity of 1 Period 6% 7% 8% 9% 10% 13% 7 5.582 5.389 5.206 5.033 4.868 4.423 O 1.35 1.22 1.26 O 1.31

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