Compute the simple rate of return for the machine

Assignment Help Managerial Accounting
Reference no: EM132924004

Problem - Alesi Corporation is considering purchasing a machine that would cost $752,800 and have a useful life of 12 years. The machine would reduce cash operating costs by $94,100 per year. The machine would have a salvage value of $107,230 at the end of the project. (Ignore income taxes.)

Required -

a. Compute the payback period for the machine.

b. Compute the simple rate of return for the machine.

Reference no: EM132924004

Questions Cloud

Make the necessary journal entry : Make the necessary journal entry, or entries, to record the rework cost. If the spoilage is normal it is assigned to an overhead control account
Investigation on the internet : Do some investigation on the Internet and look for a company that is utilizing Business Analytics in an interesting way. Write a brief report on this company an
Explain the reasons behind nab actions : Explain the reasons behind NAB's actions. How did the market react to this news?
What is the opening retail book inventory figure : A physical count on that date reveals a stock of $62,875. What is the opening retail book inventory figure for the period commencing at the beginning of August
Compute the simple rate of return for the machine : The machine would reduce cash operating costs by $94,100 per year. Compute the simple rate of return for the machine
What is account titles and explanation of Medina started : What is account titles and explanation of Medina started his new business by depositing PHP 350,000 in a bank account in the name of Medina Graphics
What do you advise to the firm managers : Cardinal Company needs 20,000 units of certain part to use in its production cycle. What do you advise to the firm managers: shall the firm buy or make product
How are the large losses related to fixed costs : The company has 2,000 employees and operates in three western states. Expand on John's thought. How are the large losses related to fixed costs
Which product makes the least profitable use : A total of 22,600 minutes are available per month on these machines. Which product makes the LEAST profitable use of the milling machines

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the unit product cost under variable costing

Compute the unit product cost under variable costing. Murphy Inc., which produces a single product, has provided the data Number of units produced

  Which of the describes the entry

A company records an adjusting journal entry to record $10,000 depreciation expense. Which of the following describes the entry?

  What would be the financial advantage buying part

What would be the financial advantage (disadvantage) of buying part U98 from the outside supplier and using the freed space to make more of the other product

  Outline the systems that should be in place to ensure

"Quality" must be more than a good marketing slogan. Outline the systems that should be in place to ensure that the concept of quality represents real value.

  Compute the variable overhead spending variance

For simplicity, assume there was no inventory of materials at the beginning or end of the period. Compute the variable overhead spending variance

  Npv estimated using cash flows

Would it expected that the NPV based on net revenue/income to be greater or lesser than the NPV estimated using cash flows?

  The following costs result from the production and sale

The following costs result from the production and sale of 12,000 CD sets manufactured by Gilmore Company for the year ended December 31, 2013. The CD sets sell for $ 18 each. The company has a 25% income tax rate.

  Prepare flexible budget and perform variance analysis

Explain difference between flexible budget and standard costing approach application and its management roles. Prepare flexible budget and perform variance

  Knowledge on cash conversion cycle

Ferguson Inc., has annual sales of $36,500,000 or $100,000 a day on a 365-day basis. On average, the company has $8,000,000 in inventory and $12,000,000 in accounts receivable.

  Determine ending retained earnings

Determine ending retained earnings.Beginning Retained Earnings $140,000, Dividends Paid $30,000, Total Assets $500,000, Current Liabilities $35,000

  What is last year turnover for westerville company

What is last year's turnover? At the beginning of this year, the company has a $137,500 investment opportunity with the cost and revenue

  What is the total budgeted factory overhead per unit

The Culver Company is preparing its Manufacturing, If the budgeted production for August is 5,000 units, what is the total budgeted factory overhead per unit?

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