Question Details

(Solved by Expert Tutors) 4)

Cleveland Cove Enterprises is evaluating the purchase



Cleveland Cove Enterprises is evaluating the purchase of an elaborate hydraulic lift system

for all of its locations to use for the boats brought in for repair. The company has narrowed their choices down to two; the B14 Model and the F54 Model. Financial data about the two choices follows: (For B14 Model, the present value for this scenario is 0.351 and the present value of annuity for this scenario is 4.639. For the F54 Model, the present value for this scenario is 0.467 and the present value of annuity for this scenario is 5.335)


Investment: B14 - $320,000; F54 - $240,000

Useful life (years): B14 - 8; F54 - 8

Estimated annual net cash inflows for useful life: B14 - $70,000; F54 - $35,000

Residual value: B14 - $30,000; F54 - $10,000

Depreciation method: B14 - Straight-line; F54 - Straight-line

Required rate of return: B14 - 14%; F54 - 10%


What is the net present value of the B14 Model?


A) $15,260 positive

B) $48,605 negative

C) $335,260 positive

D) $5,800 negative

 

Solution details:
Get this solution for only: $
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Apr 19, 2020

EXPERT

Tutor

ANSWER RATING

YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now