User Account

All Pages

Compute the payback period in years for potential investment

Assignment Help Managerial Accounting
Reference no: EM133018430

Question - Avalon Inc. is considering investing in new equipment. The initial cost of the machinery is $184,000. Avalon expects the machinery to have a 10-year useful life, with a $14,000 salvage value. Annual depreciation expense is computed as $17,000. Net annual after-tax cash inflows are $28,000. Assume that the cash inflows occur evenly throughout the year. Compute the payback period in years for the potential investment.

a. 3.8 years

b. 4.1 years

c. 6.1 years

d. 6.6 years

Reference no: EM133018430

Questions Cloud

What is the monthly cost per minute : Cell Phone ServiceCellular phone service is available for $17 per month for 766 minutes. What is the monthly cost per minute
Difference between protecting the natural world : What is the difference between protecting the natural world because we humans are valuable and because animals are valuable?
Calculate the half-yearly payment required : A couple purchased a home and signed a mortgage contract for $900,000 to be paid. Calculate the half-yearly payment required for each five-year interval
Calculate ABC unlevered cost of capital : BD Corp. has a market capitalization of $300 million and a beta of 0.75. Calculate ABC unlevered cost of capital
Compute the payback period in years for potential investment : Assume that the cash inflows occur evenly throughout the year. Compute the payback period in years for the potential investment
What is contribution to profit of newly purchased facility : Continuing from the previous question, suppose Farmer John's actual pig sales were $18 million; what is the contribution to profit of newly purchased facility
Calculate the Shay gross income for the year : Her only source of income is a $23,500 scholarship ($500 for books, $15,000 for tuition, and $8,000 for room and board). Calculate the Shay's gross income
What is the NPV of this investment : Company A invests $50,000 at the beginning of year 1, What is the NPV of this investment if the discount rate is 10%
Calculate dollar amount of direct labor efficiency variance : The actual information is available for production of Product A for period: Units produced: 9,500. Calculate dollar amount of Direct labor efficiency variance

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