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!
Problem
The Midtown Cafeteria employs five people to operate antiquated dishwashing equipment. The cost of wages for these people and for maintenance of the equipment is $85,000 per year. Management is considering the purchase of a single, highly automated dishwashing machine that would cost $140,000 and have a useful life of 12 years. This machine would require the services of only three people to operate at a cost of $48,000 per year. A maintenance contract on the machine would cost an additional $2,000 per year. New water jets would be needed on the machine in six years at a total cost of $15,000.
The old equipment is fully depreciated and has no resale value. The new machine will have a salvage value of $9,000 at the end of its 12-year useful life. For tax purposes, the company computes depreciation deductions assuming zero salvage value and uses straight-line depreciation. The new dishwashing machine would be depreciated over seven years. Management requires a 14% after-tax return on all equipment purchases. The company's tax rate is 30%.
Determine the before-tax annual net cost savings that the new dishwashing machine will provide.
Using the data from (1) above and other data from the exercise, compute the new dishwashing machine's net present value. Round all dollar amounts to the nearest whole dollar. Would you recommend that it be purchased?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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