Quantcast

Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

GoldRush18 Group Title

Guy Wood Lumber Inc. is considering the purchase of a new lathe machine. The new lathe will cost $30 000, have an eight-year life, and create cost savings of $5 000 per year. The new lathe will require $700 of maintenance each year. Guy Wood Lumber Inc. uses a discount rate of 9 per cent. The annuity figure of 9 per cent for 8 years is 5.538 a. Compute the net cash flow per year. b. Compute the net present value of the lathe. c. Determine the payback period.

  • 2 years ago
  • 2 years ago

  • This Question is Closed
  1. hadi.razavi Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    ok it is ready .

    • 2 years ago
    1 Attachment
  2. hadi.razavi Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    maybe there were some little difference between the ways of calculating of PV,Due to floating point

    • 2 years ago
  3. GoldRush18 Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    ok thanks im going through it now

    • 2 years ago
  4. hadi.razavi Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    differences in result.

    • 2 years ago
  5. GoldRush18 Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    why are they raised to a power?

    • 2 years ago
  6. hadi.razavi Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    it is a very fundamental question . A dollar today is worth against the next year. Due to inflation and other reasons (risks). So with that equation, decrease the value of revenues of the following years to get the present value of them. \[PV = A \times (1 - (1 + r)^{n})/ r\] r = discount rate and n = years

    • 2 years ago
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.