Problem 6-30, Machines A & B Mutually Exclusive
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Calculate the NPV of each machine and the equivalent annual cash flow from each machine, and determine which machine to buy.
Calculate the NPV of each machine and the equivalent annual cash flow from each machine, and determine which machine to buy.
Given the amount a machine was purchased for, the real cash flow of an old machine, and the cash flows of a new machine… determine whether they should replace the machine now or later.
Calculate the equivalent annual cost of the copiers for Hayden Inc., and determine when Hayden should replace its copiers.
Given the cash inflows from existing equipment, the cost of a new machine, the cash flow of the new machine, life, and discount rate… find the equivalent cost of the purchase along with whether they should replace equipment now or later.
Given the life left for a forklift, the cost to maintain, cost and life of a new forklift, and maintenance costs… determine whether they should replace the machine or not under two different discount rates, or postpone the replacement.
They give you information regarding the use of the president’s private jet and the additional costs that would occur and ask you to determine whether you should try to persuade the president to allow officers to use the jet.