User Account

All Pages

A company wishes to buy new equipment for 35000 the

Assignment Help Accounting Basics
Reference no: EM13575015

A company wishes to buy new equipment for $35,000. The equipment is expected to generate an additional $9,600 in cash inflows for seven years. All cash flows occur at year-end. A bank will make a $35,000 loan to the company at a 10% interest rate so that the company can purchase the equipment. Use the table below to determine break-even time for this equipment.
Year Present Value of 1 at 10%

  • 0 1.0000
  • 1 0.9091
  • 2 0.8264
  • 3 0.7513
  • 4 0.6830
  • 5 0.6209
  • 6 0.5645
  • 7 0.5132
  1. Break-even time is between 3 and 4 years.
  2. Break-even time is between 4 and 5 years.
  3. Break-even time is between 5 and 6 years.
  4. Break-even time is between 6 and 7 years.
  5. This project will never break-even.

Reference no: EM13575015

Questions Cloud

Backwater corp has 8 percent coupon bonds making annual : 1. martin software has 10.0 percent coupon bonds on the market with 19 years to maturity. the bonds make semiannual
A company is planning to purchase a machine that will cost : a company is planning to purchase a machine that will cost 33600 have a six-year life and be depreciated over a
Saxon manufacturing is considering purchasing two machines : saxon manufacturing is considering purchasing two machines. each machine costs 9000 and will produce cash flows as
Marsden manufactures a cat food product called special : marsden manufactures a cat food product called special export. marsden currently has 10000 bags of special export on
A company wishes to buy new equipment for 35000 the : a company wishes to buy new equipment for 35000. the equipment is expected to generate an additional 9600 in cash
Saitama amusements corporation places electronic games and : saitama amusements corporation places electronic games and other amusement devices in supermarkets and similar outlets
What is the firms weighted cost of capital if the : a firm with a 40 percent marginal tax rate has a capital structure of 60000000 in debt and 140000000 in equity. what
Taffy industries is considering purchasing equipment : taffy industries is considering purchasing equipment costing 60000 with a 6-year useful life. the equipment will
A company is planning to purchase a machine that will cost : a company is planning to purchase a machine that will cost 26400 has a six-year life and would be depreciated over a

Reviews

Write a Review

Accounting Basics Questions & Answers

  Amount of depreciation needs to be recaptured

The factory building was transferred to his son, John, as an inheritance at the time of wade's death and John sells it immediately after inheriting it at a gain of $30,000 based on the original cost. What amount of depreciation needs to be recaptu..

  Determining capital structure in balance

Fauver Industries plans to have a capital budget of $650,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay a dividend of $375,000.

  Total manufacturing cost charged to production during the

selected data concerning operations of cascade manaufacturing company for the past fiscal year followraw materials

  Wyatt co has budgeted the following unit

wyatt co. has budgeted the following unit sales2011nbspnbspnbspnbspnbspnbspnbspnbsp

  What steps in accepting the engagement were violated

The managing partner of the firm decides to accept the engagement. A major factor in the decision is that the firm does not have any clients in the construction industry and this will provide valuable experience. He promptly calls the president an..

  Post the entries to the general ledger if you are not using

comprehensive problem 2 for heintz and parry 20th college accountingassetsrevenues101cash401registration

  Mellilo corporation issued 6000000 of 20-year 95 percent

mellilo corporation issued 6000000 of 20-year 9.5 percent bonds on july 1 2011 at 98. interest is due on june 30 and

  Compute the cost of the ending inventory under each of

during april leary company sold 1000 units of product q. its beginning inventory and purchases during the month are

  Realizable value for the receivables

What is the doubtful account expense for the year ended December 31, 2009 if the Accounts receivable at December 31, 2009 is $440, the Allowance for Doubtful Accounts at January 1, 2009 is $64, the Accounts written off as uncollectible during the ..

  Calculate the companys total production cost per unit if

under absorption costing a company had the following per unit costs when 10000 units were produced.direct labor

  Describe why there is a big emphasis placed on auditing

describe why there is a big emphasis placed on auditing cash and cash equivalents. address the following middot why is

  Maximum amount deduction for contributions

Lyndon, age 24, has a nonworking spouse and earns wages of $36,000. He also received rental income of $5,000 and dividend income of $900 for the year. What is the maximum amount Lyndon can deduct for contributions to his and his wife's individual ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd