Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Compute the IRR of the Trade in deal.
Your firm uses a manufacturing machine that was purchased 6 years ago. The machine's book value today is 0, and you assume it can work for 5 years more. The production cost with this machine is $6 per unit. Your supplier offered a new machine in a trade-in deal. The new machine's cost is $55,000, and the supplier is willing to purchase the old machine from you for $18,000. The production cost per unit in the new machine is $3.5, and the new machine has straight line depreciation for 5 years to zero terminal value. You have estimated that your firm will sell 6500 units per year, with a selling price of $17 each. The firm'a tax rate is 30% and its discount rate is 9%.
1.Should the firm do the trade-in deal? (i.e., should the old machine be replaced?)
2.Calculate the IRR of the trade-in. (i.e., compute the IRR of the relative cash flows)
3.Plot a graph showing the profitability of the investment depending on number of units sold.
What are International Financial Reporting Standards
Understand how fixed and variable costs behave and how to use them to predict costs, analyze a mixed cost using the high-low method and prepare an income statement using the contribution format.
penury company offers two products. at present the following represents the usual results of a months
Estimate the cost of capital
Find out the net present value for each machine and decide which machine should be purchased if the required rate of return is 10 percent. Ignore taxes
AirTel Company sold 10,000 units of its product at a price of $80 per unit. Total variable cost is $50 per unit consisting of $40 in variable production cost and $10 in variable selling and administrative cost. Calculate the contribution margin.
Review the adjustment/correction process including sophisticated topics from accounting and prepare all of the financial statements in proper form - The lease payments are $10,000 each. Dillard guarantees a residual value of $10,000. An incremental ..
Calculation of company's average variable cost and its average cost curve and Calculation of variable cost and its cost curve
Use the expanded accounting equation to compute the missing quantity.
The amount of the gift was $30,000. Gift taxes of $10,000 were paid. Evaluate Emma's adjusted basis in the necklace?
A machine costs $500,000 and is expected to yield an after-tax net income of $15,000 each year. Management predicts this machine has a 10-year service life and a $100,000 salvage value, and it uses straight-line depreciation. Calculate this machin..
if your company is determined to be liable, the amount sued for may or may not be reasonable. The question is then, illustrate what information should you include in your annual report and why?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd