Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Century Lab plans to purchase a new centrifuge machine for its Manitoba facility. The machine costs $137,500 and is expected to have a useful life of eight years, with a terminal disposal value of $37,500. Savings in cash operating costs are expected to be $31,250 per year. However, additional working capital is needed to keep the machine running efficiently.
The working capital must continually be replaced, so an investment of $10,000 needs to be maintained at all times, but this investment is fully recoverable (will be "cashed in") at the end of the useful life. Century Lab's required rate of return is 14%. Ignore income taxes in your analysis. Assume all cash flows occur at year end except for initial investment amounts.
Required -
1. Calculate NPV.
2. Calculate IRR.
3. Calculate AARR based on net initial investment. Assume straight-line depreciation.
4. You have the authority to make the purchase decision. Why might you be reluctant to base your decision on the DCF methods?
What are the 8 permutation and combination of accounting? increase in assets; decrease in another assets. Increase in assets; increase in own's equity
Draw the illustrative example of balance sheet, income statement, equity statement from a trail balance and also explain the realationship
Holmes Institute, Australia - HI5020 Corporate Accounting Individual Assignment - Qualifications and experiences that employers seek from Corporate Accountants
What the net present value of the proposed investment is closest to? The data pertain to an investment proposal, Cost of the investment $62,000.
What are the five fundamental principles of the IFAC Code of Ethics for Professional Accountants? Provide a brief description of each.
If the company sells 8,200 units, its total contribution margin should be closest to?Escareno Corporation has provided its contribution format income statement
How does upper management control the firm in this type of decentralized organization? What are the various types of decentralized organizations?
Which 18% constitute selling general and administrative expenses are 30,000 lower than last year what amount represents factory overhead?
CIS Company has the following information available: Quality engineering of products RM20,000. Prepare the quality cost report for CIS Company
Compute the product cost per unit and the gross profit per unit for each product by using a simple cost allocation method (plant-wide rate) based on direct labor hours. Round your final answers to two decimal places.
Assuming that the company has no alternative use for the facilities now being used to produce the switch, should the outside supplier's offer be accepted?
Grocery but is thinking of quitting his job to attend college full time next semester. Which would be considered an opportunity cost of attending college?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd