Demonstrate or compute the net present value

Assignment Help Managerial Accounting
Reference no: EM132568932

NPV Company is considering to buy a new machine which cost P50,000. It will be a labor saving investment which will reduce payroll by P13,500 per year. Its useful life is 8 years and it will have zero salvage value. A minimum desired rate of return of 18% is used for capital investment decisions.

Information on present value factors is as follows:

Present value of P1 for 8 periods at 18% .266

Present value of an annuity of P1 for 8 periods 4.078

Required:

Question 1: Compute the net present value.

Reference no: EM132568932

Questions Cloud

How much of the dividend must be paid : How much of the $250,000 dividend must be paid as a non-eligible dividend before an eligible dividend can be designated
Determine the amount of the original investment : Assuming a positive net present value of P10,000, determine the amount of the original investment. Virginia Company invested in a four -year project.
Evaluate any competitors existing production : Evaluate any competitors' existing production in the chosen country. Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis's.
What interest rate will you pay : Celia Granda must pay today $350,000.00, as they do not have that amount available, What interest rate will you pay
Demonstrate or compute the net present value : Present value of P1 for 8 periods at 18% .266 Present value of an annuity of P1 for 8 periods 4.078.NPV Company is considering to buy a new machine
Analyze the strategic objectives of your organization : You are to analyze the strategic objectives of your organization, and reflect on your contribution towards achieving such objectives.
How much Mr Juarez must invest at the end of each month : How much Mr. Juarez must invest at the end of each month over the next seven years in a fund that pays 6.5% convertible monthly
In what way does scripture influence our decision to work : Integrate biblical insights into your discussion board thread. In what way does scripture influence our decision to work? Must be at least 300 words.
Is troy maxon the protagonist or antagonist : Is Troy Maxon the protagonist or Antagonist in the play "Fences" by (August Wilson)

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Qualcon uses the fifo method in its process costing system

QualCon uses the FIFO method in its process costing system. Compute the equivalent units of production for the period for the Melt and Mold Department.

  Compute the cash received from the sale of the equipment

Compute the cash received from the sale of the equipment. Ford Company reports depreciation expense of $47,000 for Year 2. Also, equipment costing $162,000

  Evaluate the minimum price p the company should sell

YOYO has produced 2,000 bottles of perfume. Evaluate the minimum price P the company should sell one bottle of perfume in order to start realizing ?

  Income statement-balance sheet of purchases

Make an income statement for Packer, Inc. for 2013, and the balance sheet as of December 31, 2013. Case study is given below:

  What is thomas direct labour price variance for june

Thomas produced 5,000 stopwatches and used 5,150 hours of direct labour at a total cost of $102,500. What is Thomas' direct labour price variance for June?

  Compute for march the equivalent units of production

Compute for March 2019 the equivalent units of production for conversion costs. (Round answer to the nearest whole number of units)

  What are the annual depreciation charges

What would the project's NPV be if unit sales turned out to be 20% below forecast, but other inputs were as forecasted? Would this change the decision?

  Provide journal entry for changes to capital during year

Provide journal entry for Changes to capital during year. Provide the ending balance for each partner. Distribution of net income to all partners

  Determine controllable margin and the return on investment

The service division of Retro Industries reported the result. Compute the controllable margin and the return on investment for 2010.

  Reproduce the journal entries for only the transactions

Reproduce the journal entries for only the transactions that occurred on October 1,10, and 20, and provide explanations and prepare a trial balance at October 31, 2012.

  Job order costing system at burlington clock works

Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours.

  Coffee makers incorporated cmitwo divisions of a cmi are

coffee makers incorporated cmi.two divisions of a cmi are involved in a dispute.nbsp division a purchases part 101 and

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