Company x is planning a purchase of a new machine the

Assignment Help Accounting Basics

Reference no: EM13604018

Company X is planning a purchase of a new machine. The expected cost of the machine is 75,000 and it has an expected useful life of 6 yrs with an estimated salvage of 3,000. The machine is expected to produce cost savings of 23,000 per yr in reduced labor costs and cash operating costs to run machine of 5,000 per yr. Assume company x is in the 34% tax bracket and has a minimum desired rate of rteturn of 12% on this investment. Determine the: (a) payback period (b) ARR (c) NPV (ignoring taxes)

Reference no: EM13604018

Questions Cloud

Ben cartwright pest control pays its employees total : ben cartwright pest control has the following general ledger balances in selected accounts on december 31 2010.accounts

A physical count on may 31 2010 shows 2000 units of part mo : zimmerman corp. had 1500 units of part m.o. on hand may 1 2010 costing 21 each. purchases of part m.o. during may were

The following information pertains to crystal incs : the following information pertains to crystal inc.s portfolio of investments for the year ended december 31 2010

Castine reports net income of 305000 for the year ended : castine reports net income of 305000 for the year ended december 31 year 2. it also reports 93700 depreciation expense

Company x is planning a purchase of a new machine the : company x is planning a purchase of a new machine. the expected cost of the machine is 75000 and it has an expected

Assume that simple co had credit sales of 286000 and cost : assume that simple co. had credit sales of 286000 and cost of goods sold of 134000 for the period. simple uses the

Tb 103 fjeld corporation produces and sells two products in : tb 103 fjeld corporation produces and sells two products. in the most recent month product c66g had sales of 20000 and

If manner implements a total quality management program and : manner corporation is trying to determine how long it takes for one product to pass through the production process.

Fixed expenses are 375000 per month the company is : fixed expenses are 375000 per month. the company is currently selling 8000 units per month. the marketing manager would

User Account

All Pages