User Account

All Pages

Compute the net present value of the equipment

Assignment Help Managerial Accounting
Reference no: EM132527268

The management of Salem Corporation is considering the purchase of equipment costing $109,000 which has an estimated life of 3 years and no salvage value. The net after tax cash flow from the project for each of the three years is expected to be $45,000. The company's cost of capital is 10%.

Question 1: Compute the net present value of the equipment. (Present value of $1 due in three years, discounted at 10%, is 0.751; present value of $1 received annually for three years, discounted at 10%, is 2.487.)

Reference no: EM132527268

Questions Cloud

Demonstrate the direct materials quantity variance : Data pertains to the month of October for ElmCo. Determine the direct materials quantity variance. (Negative numbers indicate a favorable variance.)
Determine the internal rate of return : An investment of 12,000 today will payout 6 annual payments of 2,500. Determine the internal rate of return if your cost of capital is 14 percent.
Discuss what a team leader can do to build a basis of trust : Please discuss what a team leader can do to build a basis of trust and increase team loyalty? What are the three mistakes a leader can make? Your response must.
What is the amount of depreciation expense : What is the amount of depreciation expense for 20X8, the second year of the asset's life using the double declining-balance method
Compute the net present value of the equipment : Compute the net present value of the equipment. (Present value of $1 due in three years, discounted at 10%, is 0.751; present value of $1 received)
What stress event at work would be most stressful for you : Please discuss a work-related stress event that you have witnessed. What stress event at work would be the most stressful for you to personally experience?
Write the EPS formula : Sumner Industries began the year with 140,000 shares of common stock and 10,000 shares of 6%, Write the EPS formula
Provide a retirement plan as a benefit : He earns $175,000 per year. He plans to fund his own retirement account through his local bank. Which of the following would BEST suit Evan?
Which is not step in the managerial decision-making process : Which is not a step in the managerial decision-making process? eview the results of the decision-making process. Identify the decision problem.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd