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The data available for the current year are given below.
using the information presented above, the contribution by Division I was?
Suggested Answer: A
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The NPV of both machines must be calculated and compared to determine which will yield a better return of cash flows. Machine A is calculated as one lump sum payable in 4 years minus the initial investment cost.
The NPV of Machine B is calculated as the present value of an ordinary annuity of
$13,000 for 4 years, minus the initial investment cost.
By comparing the NPV of both machines, Cliff would choose Machine A because NPV of A > NPV of B by $1,044.
39 comments · newest first
WI
Willie
10 months ago
Not sure about that, $380,000 seems too high.
MA
Mariann
11 months ago
I agree, $260,000 makes the most sense.
MA
Matt
11 months ago
Wait, is $310,000 even an option?
SA
Salley
11 months ago
Definitely $190,000!
TA
Taryn
11 months ago
I think it's $260,000.
OR
Oretha
12 months ago
I’m leaning towards $380,000 based on the data we analyzed in class, but I need to double-check my calculations.
LI
Lilli
12 months ago
I feel like $190,000 sounds familiar, but I might be mixing it up with another division's figures from our practice tests.
NA
Nancey
12 months ago
I remember a similar question where we had to determine the contribution margin, but I can't recall the exact formula we used.
JO
Jordan
1 year ago
I think Division I's contribution was around $260,000, but I'm not entirely sure how to calculate it correctly.
MA
Malcom
1 year ago
This seems straightforward, but I want to make sure I'm not missing anything. I'll review the options and see which one best matches the information given.
GL
Glenn
1 year ago
I'm a bit unsure about this one. The data doesn't seem to be presented in the clearest way. I'll need to read through it carefully and make sure I'm interpreting everything correctly.
LE
Leonor
1 year ago
Alright, time to put on my problem-solving hat. I'm confident I can figure this out if I take my time and double-check my work.
AL
Altha
1 year ago
Okay, let me think this through step-by-step. I need to find the relevant information in the data and then perform the necessary calculation to arrive at the answer.
LE
Lenita
1 year ago
Hmm, this looks like a straightforward calculation based on the data provided. I'll need to carefully review the numbers to determine the contribution from Division I.
AD
Adolph
1 year ago
I'm going to have to double-check my work, but I think the answer is B) $260,000. That's my final answer... unless I change my mind again.
PH
Phil
1 year ago
Let's double-check the data to confirm the correct contribution amount.
DE
Delsie
1 year ago
Are you sure about that? I calculated it to be $310,000.
AL
Alease
1 year ago
I agree, Division I's contribution was $260,000.
GA
Garry
1 year ago
I think the answer is B) $260,000.
NA
Natalie
1 year ago
Honestly, I'm just going to guess. This exam is making me hungry. Is it lunchtime yet?
TA
Tamera
1 year ago
This is a tricky one, but I'm going to go with D) $380,000. Gotta take a risk, you know?
MI
Mickie
1 year ago
User 3: I agree with User Comment, I also think it's D) $380,000.
JA
Jacquelyne
1 year ago
User 2: I'm not sure, but I'll go with B) $260,000.
LY
Lynelle
1 year ago
User 1: I think the answer is A) $190,000.
SH
Shayne
1 year ago
Hmm, I'm leaning towards C) $310,000. It just seems more in line with the information provided.
SH
Shawn
1 year ago
I'm still sticking with C) $310,000. It just seems like the most likely option based on the data.
YV
Yvonne
1 year ago
I'm not sure, but I think it might be D) $380,000. It could be a higher contribution from Division I.
EA
Earleen
1 year ago
I agree with you, Division I's contribution does seem to align more with option B.
DA
Daron
1 year ago
I think it's actually B) $260,000. Division I's contribution seems to match that amount.
TW
Twanna
1 year ago
I calculated it and I am confident that the contribution was $310,000.
EL
Elvera
1 year ago
I disagree, I believe the contribution was $190,000.
KA
Kathrine
1 year ago
I think the contribution by Division I was $260,000.
LY
Lynelle
2 years ago
I'm pretty sure it's B) $260,000. The data looks straightforward enough.
EL
Elvera
1 year ago
I'm leaning towards D) $380,000. Division I might have a bigger contribution.
CA
Carrol
1 year ago
I'm not sure, but I think it might be C) $310,000. The numbers are a bit confusing.
HE
Helaine
1 year ago
I agree with you, I also think it's A) $190,000.
MA
Margurite
1 year ago
I think it's A) $190,000. Division I's contribution seems lower.
DI
Dick
1 year ago
I agree with you, it seems like the correct answer is B) $260,000.
MA
Markus
1 year ago
I think it's A) $190,000.