Sale!

Solved Question: Corporation D is considering the purchase of a robot

9.00$ 4.00$

Order Now to Download the Solution File

* This solution is prepared by College Peers

Get premium Solution to all your Homework Assignments exclusively on writerkingdom. We have CFA/MBA writers to provide customized model answers to your every academic problem

Compare

Description

Corporation D is considering the purchase of a robot for assistance with the manufacture of engines for recreational boats. The estimated net extra income from using the robot is the following: Year 1 2 3 Net Income $200,000 $250,000 $275,000. Assume the robot life is three years.

a. What is the net present value of the estimated extra net income from the new robot. Corporation D uses a 10% discount rate for internal calculations estimating the value of assets. Accordingly, use 10% to calculate the net present value of the net income.

b. If the robot actually costs $400,000, should Corporation D purchase the robot?

Reviews

There are no reviews yet.

Be the first to review “Solved Question: Corporation D is considering the purchase of a robot”

Your email address will not be published. Required fields are marked *