Appendix AExhibit 16-9.

(Use appropriate factor(s) from the tables provided.)


Required:


  1. 1.

    Compute the net present value of the machine replacement investment.

  2. 3.

    Compute the payback period for the replacement of the machine.

  3. 4.

    How much would the salvage value of the new machine have to be on December 31, 20×5, in order to turn the machine replacement into an acceptable investment?