Compute the investments payback period in years

Assignment Help Accounting Basics
Reference no: EM132113038

Question - Middle Co. Is evaluating a proposal to invest in a new place of equipment costing $42,000 the equipment is expected to yield the following amounts per year for the 4 year useful life: Cash revenues $60,000 Cash expenses ($32,000) Depreciation (straight line) (10,000) Income provided from equipment $18,000 At Middle Co. Cost of capital, the pr sent value of an annuity of $1 dollar per year for 4 years is 3.00. The projects profitability index is: A. 1.00 B. 1.35 C. 2.00 D. 2.10 Q21: madness manufacturing Co. Is considering the following investment proposal: Initial investment: Depreciable assists (straight line) $30,000 Working capital $ 2,000 Operation (per 4 yrs): Cash receipts $20,000 Cash expenditures $11,000 De investment: Salvage value of equipment $2,000 Recovery of working capital 2,000 The investments payback period in years rounded to nearest 2 decimals is:

A. 1.50

B. 1.60

C. 3.56

D. 3.77.

Reference no: EM132113038

Questions Cloud

What time does edwards arrive home : Edwards spent 5 minutes walking next door to fill the prescription at the pharmacy. What time does Edwards arrive home
Describe the factors that contribute to team dynamics : Team dynamics are made up of many different aspects, and can be quite complex. This assignment allows you to bring together the concepts that you have learned.
Explain the reasons for regulation : What are the major types of government regulation of business? Explain the reasons for regulation.
Identify and explain the rules of law relating : Covering topics 5 to 11, this assignment has been designed to ensure that students are able to identify and apply legislation, rulings and case law
Compute the investments payback period in years : Cash expenditures $11,000 De investment: Salvage value of equipment $2,000 Recovery of working capital 2,000 The investments payback period in years
What ethical and social and political issues arise : Data might be the binary 0s and 1s on a hard drive, but information is the combination of that binary data into a document, media file, or database.
What theories have been used in peer-reviewed research : What theories have been used in peer-reviewed research when investigating emotion-based persuasive messages?
Marketing and sales and accounting and finance : Assume you run an Internet business with a couple of friends from college. Your company sells tickets to concerts and sporting events.
What could the campbell soup company have done : What could the Campbell's soup company have done differently to successfully attract Russian consumers to its product? (Response length: 1 paragraph)

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is reported as diluted earnings per share

The bonds were issued several years ago at face value. What is reported as diluted earnings per share (rounded)

  What will each report on their federal tax return

Carl and Dan agree to form a partnership on January 2, 2016. Each will get a 50% share of profit. What will each report on their federal tax return

  Show effect of each on accounting equation for corporation

Company XYZ entered in the following transactions - Analyze each transaction and show the effect of each on the accounting equation for a corporation

  What will be the net change to profits

No selling expenses would be incurred on the special order. Should Beazer's management accept the offer? What will be the net change to profits

  At the beginning of 2009 emily corporation issued 19000

at the beginning of 2009 emily corporation issued 19000 shares of 100 par 8 cumulative preferred stock for 110 per

  Majors furniture company failed

1.At the end of 2012, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2012 on bonds payable. The bonds mature in 2024.

  What is net present value of replacing the current machine

X Company is unhappy with a machine that they bought just a year ago for $40,000. It is considering replacing it with a new machine that will save significant.

  Prepare the journal entry at march 31 2031 to pay interest

swanson corporation issued 8 million of 20-year 8 percent bonds on april 1 2011 at 102. interest is due on march 31 and

  Amount reported on balance sheet for investment

The fair value of the Papa stock on that date was $53 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2011?

  Which method do you think is a better analysis tool

How does vertical analysis of financial statements differ from horizontal analysis? Which method do you think is a better analysis tool?

  Practice of accounting

How do they relate to the practice of accounting and its uses in business?

  Prepare a vertical analysis for the balance sheet

Prepare a Horizontal Analysis for all 3 financial statements. Prepare a Vertical Analysis for the Balance Sheet and Income Statement.

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