User Account

All Pages

Determine the cash payback period

Assignment Help Accounting Basics
Reference no: EM131631945

Question - BSU Inc. wants to purchase a new machine for $44,400, excluding $1,200 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,000, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $10,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value.

(a) Determine the cash payback period.

(b) Determine the approximate internal rate of return.

(c) Assuming the company has a required rate of return of 9%, determine whether the new machine should be purchased.

Reference no: EM131631945

Questions Cloud

Calculation of weighted average cost of capital : The objective for this week's case is the calculation of Weighted Average Cost of Capital (WACC) for Nike and it's use in estimating the value of the company
What are some differences in the ways gay and lesbian : What are some differences in the ways gay, lesbian, bisexual, and transgender people are treated in the United States today compared to prior decades?
Compare and contrast rational-comprehensive theory : Compare and contrast rational-comprehensive theory, incremental theory, and mixed scanning. Can you think of real-world examples
State how healthcare organizations : If there are still challenges list a few, and state how healthcare organizations can "rise to these challenges.
Determine the cash payback period : BSU Inc. wants to purchase a new machine for $44,400, excluding $1,200 of installation costs. Determine the cash payback period
Discuss quote to the other readings present in the module : Explain how the quote is significant to the theme, and how you can relate the message of the quote to yourself or to the world around you
To constitute tribunals inferior to the supreme court : Congress shall have the power to ‘borrow money on the credit of the United States; To regulate Commerce with foreign Nations.
Growth rate in perpetuity have on terminal value : What effect, if any, will increasing the growth rate in perpetuity have on terminal value? Why?
What recommendations would you propose to mitigate adverse : What recommendations would you propose to promote positive health effects? What recommendations would you propose to mitigate adverse health effects?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make or break a security posture

Ultimately, people make or break a security posture. People who do things they should not do, whether or not intentional, always trump the best technology.

  Context corporation reports the following components of

context corporation reports the following components of stockholders equity on december 31 2011. common stock-10 par

  Eectricity costs are 1200 per month plus 08 per car

auto lavage is a canadian company that owns and operates a large automatic carwash facility near quebec. the following

  Outline an anti-fraud program that you would implement

Outline an anti-fraud program that you would implement at your company. Suggest the approach you would take to sell this program to your senior executives.

  The odle company makes and sells a single product called a

the odle company makes and sells a single product called a kitt. odle uses a standard costing system. each kitt has a

  What was the earnings per share

Carter Corporation had net income of $250,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2008.

  Recording the adjusting journal entries needed if any on

prepare the adjusting journal entries needed if any on december 31 2013. ajes are only prepared at year end december

  Discuss the purpose of marshaling of assets what are the

discuss the purpose of marshaling of assets. what are the provisions that must be complied wiyh in a marshaling of

  Assume that the turner roth, and lowe partnership

Assume that the Turner, Roth, and Lowe partnership of Exercise 12-10 is a limited partnership.

  Binomial and hypergeometric distributions

Suppose a manager has 10 subordinates, 6 of whom are female, while the other 4 are male. The manager will randomly pick 3 of his subordinates to attend a conference in Hawaii.

  Answer the questions assuming that the exchange

Refer to the situation described in BE 10-12. Answer the questions assuming that the exchange lacks commercial substance.

  Microsoft extended the warranty on its x-box 360 video game

microsoft extended the warranty on its x-box 360 video game console and said it will take a charge of more than 1

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