Compute the net present value

Assignment Help Accounting Basics
Reference no: EM132625826

Question - Diamond Company is considering purchasing a machine that would cost $756,000 and have a useful life of 8 years. The machine would reduce cash operating costs by $132,632 per year. The machine would have a salvage value of $151,200 at the end of the project.

Required - Compute the Net present value, Internal rate of return, Profitability index, Payback period, Simple rate of return and Should the company purchase the machine? Why or why not?

Reference no: EM132625826

Questions Cloud

What is the expected value of the extended warranty : What is the expected value of the extended warranty assuming it is replaced in the first 2 years and How many ways can you choose seven people from a group
How is problem important or significant for nursing practice : Is the problem stated in terms, which are specific and narrow enough to study? How is the problem important or significant for nursing practice?
Create a system flowchart of the cash receipts : Question - Cash receipt procedures and system at Emporia Corporation. Create a system flowchart of the cash receipts procedures described above
Compliance plan about washing hands : A compliance plan about washing hands. A compliance plan about Employees are not knowledgeable in the use of fire extinguishers.
Compute the net present value : Required - Compute the Net present value, Internal rate of return, Profitability index, Payback period, Simple rate of return
What managed care trends do you think affect employers : What managed care trends do you think affect employers today and which do you think has the greatest impact on employers? Explain your perspective.
Do you believe you were given the status : Each person in society has a status. What is your status? In addition, do you believe you were given this status? Explain why or why not.
Post any questions that you are willing to share with group : Post any questions or concerns that you are willing to share with the group. The Discussion board represents an opportunity to network with your course.
Define difference between common practice and best practice : Over time and with experience, perhaps you recognized aspects of these processes and procedures that you wanted to question further. This is the realm.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Percentage on the total cost per session

Determine the desired ROI per session. Calculate the mark-up percentage on the total cost per session. Calculate the target price per session.

  Win corporation sells a single product budgeted sales for

win corporation sells a single product. budgeted sales for the year are anticipated to be 675521 units estimated

  Prepare an accounts payable subsidiary ledger

Prepare an accounts payable subsidiary ledger on December 31, 2010. Verify that the total of the accounts payable subsidiary ledger equals the balance of the accounts payable control account on December 31, 2010.

  Prepare the appropriate journal entry for each transactions

Prepare appropriate journal entry for each of the following transactions: On January 23, 2016, Western Transport reacquired 10 million shares at $20 per share

  ACC497 Advanced Topics In Accounting Research Assignment

ACC497 Advanced Topics In Accounting Research Assignment Help and Solution, University of Phoenix, USA. Complete the flexible budget performance report

  Prepare a journal entry for the purchase of office supplies

Prepare a journal entry for the purchase of office supplies on November 2 for $2100 paying $185 cash in the remainder on account.

  An investor purchased 549 shares of common stock 2700 par

an investor purchased 549 shares of common stock 27.00 par for 49.00. subsequently 95 shares were sold for 60.00 per

  Computing cost of the machine

The future value of an ordinary annuity of 1 for five periods is 6.10510. The present value of an ordinary annuity of 1 for five periods is 3.79079. What was the cost of the machine?

  Compute the roe and profit margin ratio

For Woolworths Ltd using the 2012 year compute the ROE, profit margin ratio, asset turnover ratio, current ratio, debt to equity ratio, interest coverage ratio, NTAB, EPS, DPS and the PER

  Which of the given defines persuasion

Dwayne wants to adapt his sales message to his target audience. What question is his audience likely to ask while reading his message?

  How can you create and maintain the chart of accounts

Describe them. What are some key reports one can generate to measure the firm's financial performance?

  Summarize the effects of the journal entries by account

Analyze each item for its effects on the accounting equation of LDS for the year ended December 31. Record the effects of each item using a journal entry. Summarize the effects of the journal entries by account, using the T- account format shown in t..

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