User Account

All Pages

Acme produce inc wishes to buy a potato processing unit for

Assignment Help Accounting Basics
Reference no: EM131011770

Acme Produce, Inc. wishes to buy a potato processing unit for their plant. Acme's engineers have negotiated a contract that covers the annual maintenance costs for the first two years, with Acme incurring annual maintenance costs beginning at the end of year 3. Acme's engineers estimate that the annual maintenance will cost $45,000. If the installation cost (including purchase price) for the unit is $140,000, what is the present value of the machine?

You are to assume

  • Acme will maintain the machine for 8 years after its installation (including the two years covered by the manufacturer) and then the machine will be discarded, with zero value.
  • Acme will not perform any maintenance operations in the 8th year.
  • Acme's MARR is 15%.

Reference no: EM131011770

Questions Cloud

The terrier program cost estimate is in constant : The TERRIER program cost estimate is in constant FY 2011 dollars, while the SPANIEL program cost estimate is in constant FY 2014 dollars. Which one of the following is the most valid way of comparing the costs of these two programs?
Explain the communication in a relationship : To describe and explain the communication in a relationship you have with another person
Navy in-production aircraft acquisition program : The program manager of a Navy in-production aircraft acquisition program proposes a product improvement program to redesign the ejection seat and aircraft canopy to improve pilot safety. This effort will enhance the system’s performance capability an..
The growing strand of a dna molecule : Some chemotherapy drugs act by attaching themselves to the growing strand of a DNA molecule, thus preventing its replication. Cells on which phase of the cell cycle would be affected by this drug?
Acme produce inc wishes to buy a potato processing unit for : Acme Produce, Inc. wishes to buy a potato processing unit for their plant. Acme's engineers have negotiated a contract that covers the annual maintenance costs for the first two years, with Acme incurring annual maintenance costs beginning at the end..
Annual account balances : The following are annual account balances as of September 30, 2OX1, for Downtown Hospital. Prepare a statement of operations for the 12-month period ending September 30, 2OX1. Givens (in thousands) Net patient revenues $750,000 Supply expense $145,00..
Domestic supply and demand equations : The US market of rice is described by the following domestic supply and demand equations: QdUS = 400 – 2 P , QsUS = -100 + 3 P where QdUS and QsUS represent the quantities demanded and supplied (in millions of tons) and P is the price per ton of rice..
Explains where that heat comes from : When you exercise, your body produces a lot of heat. Which of the following explains where that heat comes from?
Positive or negative numbers as they affect cash flow : The following are account balances (in thousands) at December 31, 2OX1, for Sharon Hill Hospital. Prepare a statement of cash flows for the year ended December 31, 2OX1. (Hint: the amounts have been stated as positive or negative numbers as they affe..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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