Calculate the npv for both conveyor belt systems

Assignment Help Accounting Basics
Reference no: EM133177394

Question - Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $300,000, has a four-year life, and requires $101,000 in pretax annual operating costs. System B costs $380,000, has a six-year life, and requires $95,000 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 10 percent. Calculate the NPV for both conveyor belt systems.

Reference no: EM133177394

Questions Cloud

Key considerations in strategic decisions : What are some ways multinational enterprises continue to try to grow their businesses on a global scale? What are some key considerations in making these strate
Front-desk customer service position : A line manager has indicated to your that there is a disconnect between the skills and competencies he/she/they is being asked to assess in the performance appr
Analyze the parts of cultural intelligence : Recall how understanding cultural differences is more than identifying with diversity. How can we analyze the parts of cultural intelligence?
How orientation can help new employees : Workplace diversity isn't just an inclusion fad, it is something most companies are trying to achieve. Debate any FIVE (5) main benefits of diversity in the wor
Calculate the npv for both conveyor belt systems : System A costs $300,000, has a four-year life, and requires $101,000 in pretax annual operating costs. Calculate the NPV for both conveyor belt systems
Sector inc contract workforce : In 2010, Sector INC. a large manufacturer of computer printers and other peripherals, established a task force to determine the most appropriate use of contract
Utilizing diverse teams within organization : What are some advantages to utilizing diverse teams within an organization?
Determine the net hst payable or refund for the quarter : All of the operations of June Ltd. are located in Ontario where the relevant HST rate is 13 percent. Determine the net HST payable or refund for the quarter
Discuss the outcomes of job satisfaction : Discuss the essay question below, students are required to provide relevant examples in their presentation. 1. Discuss the outcomes of Job Satisfaction.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Finley corporation had income from continuing operations of

finley corporation had income from continuing operations of 10600000 in 2012. during 2012 it disposed of its

  What is the maximum amount the company pay

If National Restaurant Supply requires a 15% return on investment (ROI), what is the maximum amount the company would be willing to pay

  Lower of cost or market the inventory of oheto company

Determine the inventory as of December 31, 2011, by the lower-of-cost-or-market method, applying this method directly to each item.

  Calculate the sustainable growth rate

You are given the following information for Suzuki violins, Inc. Profit margin 10% and Payout ratio 36%. Calculate the sustainable growth rate

  Prepare closing entries including general ledger account num

Prepare all necessary adjusting entries at December 31, 2019, including general ledger account numbers. Descriptions are not needed.

  What are the Federal income tax consequences of property tax

Red Corporation wants to set up a manufacturing facility in a midwestern state. What are the Federal income tax consequences of property tax

  Explain the notion of management bias

Explain the notion of management bias in financial reporting and the issues related to ethics and financial accounting. The response must be typed.

  Determine the inventory cost

The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method

  What will be the balances in the balance sheet accounts

What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Crescent (ignore taxes)

  What is the carrying value of the asset

Dolphin Company uses special strapping equipment in its packaging business. The equipment was purchased in January 20X3 for $8,000,000 and had an estimated.

  Determining controllable variance

The actual variable factory overhead is $32,000. In the current period, 2500 units are produced at a standard time of 2 labor hours per unit. These units require 5,500 actual labor hours. What is the controllable variance?

  How much revenue should be recognized

At the end of Year 1, costs incurred to date amount to $18 million. Using the cost-to-cost method, how much revenue should be recognized in Year 1

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