The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $13,100 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $67,000 and has been depreciated by the straight-line method.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

• The new harvester is not expected to affect revenues, but pretax operating expenses will be reduced by $12,100 per year for 10 years.
• The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $52,500 and has been depreciated by the straight-line method.
• The old harvester can be sold for $20,100 today.
• The new harvester will be depreciated by the straight-line method over its 10-year life.
• The corporate tax rate is 24 percent.
• The firm’s required rate of return is 14 percent.
• The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.
• All other cash flows occur at year-end.
• The market value of each harvester at the end of its economic life is zero.

The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $13,400 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $71,000 and has been depreciated by the straight-line method.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $13,400 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $71,000 and has been depreciated by the straight-line method.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $14,300 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $86,000 and has been depreciated by the straight-line method.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The new machine is not expected to affect revenues, but pretax operating expenses will be reduced by $12,700 per year for 10 years.

The old machine is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $61,500 and has been depreciated by the straight-line method.

The initial investment, the proceeds from selling the old machine, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each machine at the end of its economic life is zero.

Determine the break-even purchase price in terms of present value of the machine.