Net Present Value of a New Machine and Finding Missing Contribution Margin Amounts

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Problem 1 The initial coSt of a new machine is $500,000, annual revenules are expected to be 100,000 in year 1 with an annual increase of 5% in years 2-5, the annual expenses are expected to be 80% of revenues The project Salvage value is 20,000 with five years useful like, straight-line depreciation used CoSt of capital of 11% is used in the investment What is the net present value? Problem 2 Identify the missing price per visit, variable costs per visit, number of visits, contribution margin, fixed coSts, and/or net income. Price Per Var. Costs Number Contribution Fixed Net Visit Per Visit of Visits Margin Costs Income $80 B 3,000 $180,000 F $80,000 $75 $20 c $130,000 $90,000 G A $35 3,250 D $78,000 $125,000 $60 $40 2,000 E $60,000 H : A A. ($20,000) B. $23.50 - : B C. $40,000 C D. $40,000 D E. 2,364 - E F. $35,000 F G. $20

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Net Present Value of a New Machine and Finding Missing Contribution Margin Amounts
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