Calculate the present value of the cash savings

Assignment Help Accounting Basics
Reference no: EM132736345

Question - Incognito Company is contemplating the purchase of a machine that provides it with cash savings of $80,000 per year for five years. Interest is 8%. Assume the cash savings occur at the end of each year. Calculate the present value of the cash savings.

Reference no: EM132736345

Questions Cloud

Which account will be credited to record the transaction : Cape traders uses the perpetual inventory systems. The owner of the cape traders took inventory for his own personal use.wich account will be debited.
What is the expected growth rate of cyberdyne dividends : Stockholders' required rate of return is 9%, what is the expected growth rate of Cyberdyne dividends based on the Discounted Dividend Model for constant growth?
Leadership behaviors into two primary dimensions : Research has narrowed the thousands of leadership behaviors into two primary dimensions. Please list and discuss these two behaviors.
What is the utilization ratio of the plant : The Widgets-R-Us Co. produces glass widgets. The plant is designed to produce 60 widgets per hour, and there is one 10-hour shift per working day.
Calculate the present value of the cash savings : Interest is 8%. Assume the cash savings occur at the end of each year. Calculate the present value of the cash savings
What is the maximum annual interest rate : What is the maximum annual interest rate that you could have for this loan to prevent you from paying more than $1,500 per month toward your mortgage?
How will the liability be allocated at the end of year three : G and L form a limited partnership, G, the general partner, contributes $10,000 and L, the limited partner, contributes $90,000. The partnership purchases.
Primary components of information system : Of the five primary components of an information system (hardware, software, data, people, process),
Which loan would recommend to friend and why : The loan from Bank C has an annual interest rate of 7.5% compounded semiannually. Which loan would you recommend to your friend and why?

Reviews

Write a Review

Accounting Basics Questions & Answers

  There were no purchases or sales of available-for-sale

on december 31 2009 payton co. had the following available-for-sale investment disclosure within the current assets

  Discuss whether more disclosure should be required for firms

Consider that disclosure tends to drive behavior toward some expected level. Briefly discuss whether more disclosure (or less) should be required for firms.

  Does the report provide any useful information for decision

Does the report provide any useful information for the decision. Explain

  What valuation method should be used to account

On May 20, 2013, Montero Co. paid $ 1,000,000 to acquire 25,000 common shares (10%) of ORD Corp.

  What is the net realizable value of accounts receivable

Americano estimates that 5% of its accounts receivable ending balance is considered doubtful. What is the net realizable value of accounts receivable

  Explain the impact of the cycle on a companys cash flow

All products go through a series of phases called the product life cycle. For each of the four phases, explain the impact of the cycle on a company's cash flow

  What is the contribution margin per pound

Wilson's Meats has computed its fixed costs to be $.60 for every pound of meat it can sell given an average daily sales level of 500 pounds. It charges $3.89 per pound of top-grade ground beef. The variable cost per pound is $2.99. What is the con..

  Discuss the conventional retail method

Estimate the cost of ending inventory applying the conventional retail method

  The bottle division has sufficient capacity to meet all

signature scents has two divisions the cologne division and the bottle division. the bottle division produces

  Detect intentional misstatements of liabilities

Hypothesize a scenario in which one could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that companies can take to prevent or detect intentional misstatements of liabilities for personal finan..

  Bakers bagels llc produces and sells 20 types of bagels by

bakers bagels llc produces and sells 20 types of bagels by the dozen. bagels are priced at 6.00 per dozen or 0.50 each

  Find statement of cash flows for french corporation for year

Statement of cash flows for French Corporation for the year 2019. (Use the indirect method.).French Corporation's financial statements

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