Calculate the internal rate of return on this new machine

Assignment Help Managerial Accounting
Reference no: EM132960909

Question - Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $421,000. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $99,514 for the next 6 years. Management requires a 10% rate of return on all new investments.

Calculate the internal rate of return on this new machine?

Should the investment be accepted?

Reference no: EM132960909

Questions Cloud

Find survival breakeven revenue : Find survival (EBDAT) breakeven revenue. Cost of goods sold is the only variable cost, all the other costs and expenses are fixed.
Find one news article published : ind one news article published no earlier than 7/1/2021 that is about the hospitality industry but not specifically related to the Coronavirus Pandemic. in the
Calculate the sustainable growth rate for nt inc : Calculate its sustainable growth rate. NT Inc. is evaluating its sustainable growth rate, if future external funding is no longer available.
Technology-based training methods : Managers and trainers should consider using technology-based training methods even though traditional training methods can be effective.
Calculate the internal rate of return on this new machine : The company believes that with this new machine it will improve productivity and increase quality, Calculate the internal rate of return on this new machine
Calculate the company roe : ABC Company has annual sales level of $300,000, net income of $15,000, total assets of $580,000 and equity level of $400,000. Calculate the company's ROE
Calculate each venture capital firm implied post-money : Calculate each venture capital firm's implied post-money valuation and pre-money valuation. Given the calculated result, which offer fits better for QBER's need
What the activity rate for order processing activity cost : The company has provided the following data concerning its costs: Wages & Salaries - 480,000. What the activity rate for Order Processing activity cost
Define what is quality : Define what is quality and how does it correlate to product and service?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

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