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For more course tutorials visit www.acc543.com Exercise 24-4A Determining the present value of an annuity The dean of the School of Social Science is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 8 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $8,000 per year. The machine is expected to have a three-year useful life with a zero salvage value. Required a. Use Present Value Table 1 in Appendix A to determine the maximum amount of cash the dean should be willing to pay for a copy machine. b. Use Present Value Table 2 in Appendix A to determine the maximum amount of cash the dean should be willing to pay for a copy machine. c. Explain the consistency or lack of consistency in the answers to Requireme
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Exercise 24-4A Determining the present value of an annuity The dean of the School of Social Science is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 8 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $8,000 per year. The machine is expected to have a three-year useful life with a zero salvage value. Required a. Use Present Value Table 1 in Appendix A to determine the maximum amount of cash the dean should be willing to pay for a copy machine. b. Use Present Value Table 2 in Appendix A to determine the maximum amount of cash the dean should be willing to pay for a copy machine. c. Explain the consistency or lack of consistency in the answers to Requireme
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<strong>ACC</strong> <strong>543</strong> <strong>Exercise</strong> <strong>24</strong>-<strong>4A</strong> <strong>Determining</strong> the presentvalue of an annuity (UOP)Click Here to Buy the Tutorialhttp://www.acc<strong>543</strong>.com/product-32-<strong>ACC</strong>-<strong>543</strong>-<strong>Exercise</strong>-<strong>24</strong>-<strong>4A</strong>-<strong>Determining</strong>-the-present-value-of-anannuityFor more course tutorials visitwww.acc<strong>543</strong>.acc<strong>543</strong>.comcom<strong>Exercise</strong> <strong>24</strong>-<strong>4A</strong> <strong>Determining</strong> the present value of an annuity The deanof the School of Social Science is trying to decide whether topurchase a copy machine to place in the lobby of the building. Themachine would add to student convenience, but the dean feelscompelled to earn an 8 percent return on the investment of funds.Estimates of cash inflows from copy machines that have been placedin other university buildings indicate that the copy machine wouldprobably produce incremental cash inflows of approximately $8,000per year. The machine is expected to have a three-year useful life witha zero salvage value. Required a. Use Present Value Table 1 inAppendix A to determine the maximum amount of cash the deanshould be willing to pay for a copy machine. b. Use Present ValueTable 2 in Appendix A to determine the maximum amount of cash thedean should be willing to pay for a copy machine. c. Explain theconsistency or lack of consistency in the answers to Requirements a &b.
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