Solution-Calculate the npv for both conveyor belt systems

Calculate the npv for both conveyor belt systems

Assignment Help Cost Accounting

Reference no: EM132797358

Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $275,000, has a year life, and requires $81,000 in pretax annual operating costs. System B costs $355,000, has a six-year life, and requires $75,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax rate is 22 percent and the discount rate is 9 percent.

Problem 1: Calculate the NPV for both conveyor belt systems.

Reference no: EM132797358

Questions Cloud

Compute consolidated income tax : Comet operates solely within the United States. If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax

Find alternate ways of treating bacterial infections : Find alternate ways of treating bacterial infections? Provide your suggestions and the logic behind those suggestions.

What would the salvage value have to be a good investment : There will be some salvage value for the equipment, but she isn't sure how much. What would the salvage value have to be for this to be a good investment?

Explain the relative resistance of the microbes : Explain the relative resistance of the following microbes to disinfectants and antiseptics: gram-negative bacteria, gram-positive bacteria, endospores

Calculate the npv for both conveyor belt systems : Calculate the NPV for both conveyor belt systems. Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems.

Describe simple staining and fluorescence staining : Describe how simple staining and fluorescence staining are similar and how they are different. What are the advantages of each?

How much money does hayao have to deposit into the account : How much money does Hayao have to deposit into the account today so that the account will be depleted after the final payment?

Determine what is the coupon rate on the bond : You have just paid $1,135.90 for a bond, which has 10 years before it, If you require an 8% return from this bond, what is the coupon rate on this bond?

Contrast the aerobic respiration and fermentation : Compare and contrast the aerobic respiration and fermentation in terms of pathways found in each, substrates, products

User Account

All Pages

Calculate the npv for both conveyor belt systems

Reference no: EM132797358

Reference no: EM132797358

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT