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!
Question - The E Company is considering the replacement of Machine A with Machine B that will cost P160,000 and will result in annual savings of P40,000 before income taxes because of the expected increase in operating efficiency. Machine B has an estimated useful life of 10 years and salvage of P10,000. Machine A has a book value of P16,000 and a disposal value of P20,000 now.
Straight-line depreciation is used and the company has an average income tax rate of 35%. The minimum desired rate of return on this investment is 20%. The present value of an ordinary annuity of P1 in arrears for 10 periods at 20% is 4.192. The present value of P1 for 10 periods at 20% is 0.162.
Required -
1. Determine the Net Investment
2. Determine the annual cash flow net of income tax.
3. What is the net present value of the investment?
calculation of discount rate of the lender and passing journal entries.notes payable - discount basis. on august 1 2009
Kaitlyn's company needs to obtain funds in order to keep the business going; however, she does not want stockholders influencing the direction of her company. Illustrate what type of financing should Kaitlyn acquire?
How would Wilbur and Orville each value this stock? Wilbur and Orville are brothers. They're both serious investors, but they have different approaches
laura, the conrolling shareholder and an employee of southwest corporation, recives an anual salary of 750000. Based on several factors including the size of the corporation's operations and comparision of salary received by officers of comparably-si..
How much did each company have in total assets for each of the last 2 years?- What is the return on assets for each company in the current year?
H Ltd is 8.22 percent and that the interest is compounding monthly. If the tax rate is 38%, find the cost (in %) of loan capital for H Ltd.
Prepare contribution format segment income statements
Which of the following statements about the limitations of financial condition analysis is(are) most correct? Comparison with industry averages is difficult if the organization operates in several different lines of business. Seasonal factors can dis..
If the price per room per night is increased by 15 per cent, the break-even number of occupied room nights will be?
Assume that there is an alternative stock, (stock II) gives an expected return of 13%, with a standard deviation of .20, which stock would you prefer to invest
What is LCD's cost of retained earnings based on the CAPM? What is the cost of LCD' ordinary shares? What is LCD's cost of preference shares?
Gilberto Company currently manufactures 70,000units per year of one of its crucial parts.
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