[SOLVED] Tippy Toe Spa Company offers various services, such as facials, laser | SolutionInn (2025)

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Tippy Toe Spa Company offers various services, such as facials, laser hair removal and microdermabrasion. Currently, the company is considering purchasing the following spa equipment:

	Laser Hair Removal Machines	Microdermabrasion Machines	Facial Oxygen Units
Cost per Machine	$65,000	$31,400	$24,200
Annual Cash Inflow	$124,300	$213,200	$39,100
Annual Cash Outflow	$88,300	$198,500	$28,700
Required Rate of Return	11%	11%	7%
Useful Life	3 years	4 years	3 years
Residual Value	$860	$840	$0

Assume that each equipment's annual cash flow will occur for the period equal to its useful life. Do not enter dollar signs or commas in the input boxes. Use the present values tables in the textbook appendix. Use the negative sign for negative values. Round your answers to the nearest whole number. a) Determine the NPV of each piece of equipment. Laser Hair Removal Machine: $Answer Microdermabrasion Machine: $Answer Facial Oxygen Unit: $Answer b) For each piece of equipment, determine the maximum acceptable price using the NPV method. Laser Hair Removal Machine: $Answer Microdermabrasion Machine: $Answer Facial Oxygen Unit: $Answer c) Determine the payback period for each piece of equipment. Round your answers to 1 decimal place. Laser Hair Removal Machine: Answer Years Microdermabrasion Machine: Answer Years Facial Oxygen Unit: Answer Years

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[SOLVED] Tippy Toe Spa Company offers various services, such as facials, laser | SolutionInn (2025)

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