6.3 Berry Chips Inc. (BCI)is considering acquiring a new semiconductor fabricator. The machine...
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Accounting
Berry Chips Inc. considering acquiring a new semiconductor fabricator. The machine costs $ will last for eight years, and has a salvage value $ The forecasted net revenue stream shown. For simplicity, assume all net revenues are received the end the year. BCI uses a discount rate
Year
Cost
Cash Inflows
Salvage Value
Net Cash Inflows
$
$
$
$
Required:
the net present value method determine whether BCI should buy the machine.
two things that would have change for you change your decision. Assume cash flows cannot change.
Required:
Use the data from Problem and Case recalculate part using a discount rate
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