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!
Cohen Manufacturing Ltd. (CML), a company located in Calgary, produces steel piping for the oil and gas industry. CML's senior management is considering the purchase of a new pipe-forming machine that will improve CML's production. The new machine will cost $10,000,000. Delivery and installation will cost $1,250,000. The new machine is expected to have a useful life of 10 years, and a salvage value of $1,000,000. The old machine can be sold for $300,000. The new machine is expected to increase CML's revenue by $5,000,000 per year. Operating expenses of the new machine are 54% of sales. Interest costs for a bank loan to finance the new machine are expected to be $65,000 per year over its useful life. Accounts receivable are expected to increase by $350,000, accounts payable are expected to increase by $300,000, and inventory is expected to increase by $500,000. The working capital accounts are expected to return to previous levels at the end of the new machine's useful life. CML is subject to tax at a rate of 35%. The CCA rate for the new machine is 30% (Class 43) and it is subject to the half-year rule. The same CCA class already has assets in it, and the pool is expected to continue to have assets in it after the 10-year useful life of the machine. CML's capital structure is 50% debt and 50% equity, and its weighted average cost of capital is 12.3%
Problem 1: Determine whether CML should proceed with purchasing the new machine using the net present value method. Round your calculations to the nearest dollar
The United States has a capitalistic economy. What is capitalism? Explain how the different inventory valuation methods affect a company's financial statements
Recently, many new ventures focusing on craft beer have been launched. If the goal is to make a profit, perhaps it would have been better to forget making.
land buildings and equipment are axquired for limp aum of 950000.the market values of the three assests are
Compare the physical units of production Compute equivalent units of production for materials and for conversion costs.
Digger Inc. sells a high-speed retrieval system for mining information. Compute the predetermined overhead rate. Determine the amount of overhead applied
Calculate the depreciation expense for the five years using the straight-line method, units of production method and double-declining balance method
A manufacturer must decide whether to extend credit to a retailer who would like to open an account with the firm. Past experience with new accounts indicates that 45% are high-risk customers, 35% are moderaterisk customers, and 20% are low-risk c..
Bonds are sold at a premium if the: a. market rate of interest was more than the face rate at the time of issue. b. market rate of interest was less than the face rate at the time of issue. c. issuing company has a better reputation than other com..
Calculate the Gross Profit and Gross Profit Percentage for this year and last year
finished goods inventoy at the end of nov was 1500 units. ending finished goods inventory is equal to 25 percent of the
Calculate the annual depreciation charge for each of the six years of the truck's life using the following methods: the straight-line method
Consider the following two queueing systems. System 1: An MM1 system with arrival rate and service rate 3µ
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