User Account

All Pages

Compute this machine accounting rate of return

Assignment Help Accounting Basics
Reference no: EM131539891

Question: 1. A machine costs $500,000 and is expected to yield an after-tax net income of $15,000 each year. Management predicts this machine has a 10-year service life and a $100,000 salvage value, and it uses straight-line depreciation. Compute this machine's accounting rate of return.

2. A company is considering investing in a new machine that requires a cash payment of $15,982 today. The machine will generate annual cash flows of $7,000 for the next three years. What is the internal rate of return if the company buys this machine?

Reference no: EM131539891

Questions Cloud

Why are some occupations paid more than others : The purpose of this assignment is so students may look at the microeconomic data and other sources for better understanding of trends and determinants.
The economics of labor markets : Select an organization with which you are familiar or an organization where you work.
What is the net present value of this investment : Fabiano Brothers Co. is considering an investment that requires immediate payment of $550,000 and provides expected cash inflows of $100,000 annually for eight.
Review the type of job analysis used by your organization : Review the type of job analysis used by your organization, and determine if it is effective.
Compute this machine accounting rate of return : A machine costs $500,000 and is expected to yield an after-tax net income of $15,000 each year. Management predicts this machine has a 10-year service life.
How does the hendricks case relate to ochberg article : After reading the Hendricks case, answer the following questions: How does the Hendricks case relate to Ochberg's article
How much net working capital does the firm need to fund : How much net working capital does the firm need to fund?
Statement for the westgate division of north industries : Develop a profit-and-loss statement for the Westgate division of North Industries. This division manufactures light fixtures.
Negative growth-mature manufacturing firm : Negative Growth. Antiques ‘R’ Us is a mature manufacturing firm.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

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

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

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 and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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