H and y service station is planning to invest in

Reference no: EM13611402

H and Y Service station is planning to invest in automaticcar wash equipment valued at $250000. The owner estimatesthat the equipment will increase annual net cash inflows by $46000.The equipment is expected to have a 10 year useful life with anestimated residual value of $50000. The company requires a 14 %minimum rate of return. Using the net present value method, preparean analysis to determine whether the company should purchasetheequipment. How important is the estimate of residual value to this decision? Use the tables on future value and presentvalue.

Reference no: EM13611402

Questions Cloud

When an object falls and hits the floor without bouncing : when an object falls and hits the floor without bouncing off the floor the normal force of the floor on the object

Calculate the brake kw of the fan if its efficiency is 65 : a centrifugal fan is to be used to take a flue gas at rest zero velocity and at a temperature of 352.6 k and a pressure

The mean and standard deviation on a calculus mid term are : the mean and standard deviation on a calculus mid term are 55 and 16 points while they are 65 and 22 on the final. if a

Calculate the average price at which the shares were issued : the balance sheet caption for common stock is the following common stock without par value 2000000 shares authorized

H and y service station is planning to invest in : h and y service station is planning to invest in automaticcar wash equipment valued at 250000. the owner estimatesthat

A proton traveling from a far distance with a velocity of : a proton traveling from a far distance with a velocity of 5 x 105 ms and is headed directly at a nitrogen 14 nucleus.

Jane amp joan form a partnership by combining the assets of : jane amp joan form a partnership by combining the assets of theirseparate businesses. jane contributes accounts

A machine costs 400000 and is expected to yield an : a machine costs 400000 and is expected to yield an after-tax net income of 9000 each year. management predicts this

The average customer previosly spent 901 u901 with a : suppose you as manager of texas steak house have started a training program for your employees with 2 goals one is to

User Account

All Pages