The pan american bottling co. is considering the purchase of a new machine that would increase the speed of bottling and save money. the net cost of this machine is $57,000. the annual cash flows have the following projections. use appendix b and appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods. year cash flow 1 $ 21,000 2 24,000 3 28,000 4 14,000 5 9,000 a. if the cost of capital is 11 percent, what is the net present value of selecting a new machine?

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u.s. treasury yield curve can take. check all that apply.

Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u.s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is