Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $491,000 cost with an expected four-year life and a $15,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Expected annual sales of new product $ 1,960,000 Expected annual costs of new product Direct materials 490,000 Direct labor 676,000 Overhead (excluding straight-line depreciation on new machine) 335,000 Selling and administrative expenses 141,000 Income taxes 40 % Required:

Compute the net present value for this machine using a discount rate of 6% and assuming that cash flows occur at each year-end.

The answer is attached;

Explanation:

Please note that project has positive Net present value (NPV) of $405,862 due to which project is feasible    

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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