Bassinger Company plans to buy a new machine for $60,000 that will have an estimated...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of 3 years and no salvage value. The expected cash inflow is $24,000 annually. Bassinger Company has a cost of capital of 12%. Given that the present value of $1 after 3 periods at 12% is 0.71178, and the present value of an annuity for 3 periods at 12% is 2.40183, the profitability index is: 0.04 1.96 1.04 0.28 0.96
Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of 3 years and no salvage value. The expected cash infliow is 52,000 annually Bassinger Company has a cost of capital of 12%. Given that the present value of $1 after 3 periods at 12% is 0.71178 , and the present value of an annuity for 3 peeriods at 12% ti 2.40183, the profitability index is: 0.04 1.96 1.04 0.28 0.96
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
