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I need help with my homework with work shown


Feed the Hungry Foundation is a non-profit organization that has a cost of capital of 13 percent. The foundation is considering the replacement of a piece of equipment. The old machine has a book value of $6,000 and a remaining estimated life of 5 years with no salvage value at that time. The value of the old machine is currently $3,000. The new equipment will cost $12,000. It has an estimated life of 5 years with no salvage value. Annual cash operating costs are $4,500 for the old machine and $2,100 for the new machine (ignore tax impact).

Note: ignore any tax impacts

4.1. Refer to Feed the Hungry Foundation. What is the present value of the operating cash outflows for the old machine?



4.2. Refer to Feed the Hungry Foundation. What is the present value of the operating cash outflows for the new machine?





4.3. Refer to Feed the Hungry Foundation. What is the present value of salvage value of the old machine if it is replaced now?








4.4. Refer to Feed the Hungry Foundation. Would you advise the organization to replace the machine?
 
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Fidget

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4.1 $8,000
4.2 $12,283
4.3 $0
4.4. No

I've completely made those answers up, so I wouldn't rely on them for accuracy. But, I've still had more of a go at it than you have.
 
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4.1 $8,000
4.2 $12,283
4.3 $0
4.4. No

I've completely made those answers up, so I wouldn't rely on them for accuracy. But, I've still had more of a go at it than you have.
Can you shown how you got the answers
 
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Ian

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@haidi28 - please read this note aimed at students. We're not an answering service, but if you put some effort in we may be able to help:

Please note that if you are looking for assistance with an exam-style question, you must attempt the question yourself before asking for help. You can then state the answer you have so far and explain which aspect you need help with. Anyone posting exam-style questions expecting the answer to be given to them will have their posts removed. Repeat offenders will be banned from the forum.
 

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