Determine the cash payback period for both location proposal

Assignment Help Accounting Basics
Reference no: EM131786011

Problem - Cash payback period

Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $360,000 and each with an 8-year life and expected total net cash flows of $480,000. Location 1 is expected to provide equal annual net cash flows of $60,000, and Location 2 is expected to have the following unequal annual net cash flows:

Year 1

$120,000

 

Year 5

$30,000

Year 2

90,000

 

Year 6

30,000

Year 3

75,000

 

Year 7

30,000

Year 4

75,000

 

Year 8

30,000

Required - Determine the cash payback period for both location proposals.

Reference no: EM131786011

Questions Cloud

Probability of getting the correct answer to first question : Testing In taking a quiz with 6 multiple-choice questions, a student knows that two of the possible five answers to the first question are not correct.
Write paper about financial analysis for berkshire hathaway : Hello, I am writing a paper about financial analysis for Berkshire Hathaway. If you can gather this information for me it would really help.
Probability that an article chosen at random is defective : Quality control On the average, 6 articles out of each 250 produced by a certain machine are defective. What is the probability that an article chosen.
Discuss the big bart line should be eliminated : If the Big Bart line is eliminated, $20,300 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated
Determine the cash payback period for both location proposal : Location 1 is expected to provide equal annual net cash flows of $60,000, Determine the cash payback period for both location proposals
What companies might your mnc include in benchmarking study : What companies might your MNC include in a benchmarking study and in which countries are those companies located.
Computing the number of fatal occupational injuries : Occupational fatalities the table gives the number of fatal occupational injuries from transportation incidents. If a fatality from this group is chosen.
What is the probability of completing the exam : What is the probability that a student will complete the exam in more than 60 minutes but less than 75 minutes (to 4 decimals)?
Explore the local legal market : Michael, Joseph's spouse, is a lawyer, and he uses the time in Palo Alto to explore the local legal market and the potential for obtaining a lawyer position.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Bevs dry cleaners is owned and operated by beverly zahn a

bevs dry cleaners is owned and operated by beverly zahn. a building and equipment are currently being rented pending

  How is the data in each database captured

How is the data in each database captured? Who updates each database and how often? Is it possible for you to request a printout of the contents of your data record from each database? What data privacy concerns do you have?

  Materials and labor variances

Last year Vera Corporation budgeted for production and sales of 20,000 cloth handbags. Vera produced and sold 19,250 handbags. Each handbag has a standard requiring 4 feet of material at a budgeted cost of $2.50 per foot and 45 minutes of sewing t..

  Current taxable on gifts

Total 2008 gift of life insurance policy is 72,000. annual exclusions are 24,000 (two donees at 12,00). Current taxable gifts equal 48,000.

  Prepare the sales budget by quarter

Prepare a production budget by quarters for the first 6 months of 2014. BE 9-2 Palermo Company estimates that unit sales will be 10,000 in quarter 1; 12,000 in quarter 2; 15,000 quarter 3 and 18,000 in quarter 4. Using a price of $70 per unit prep..

  What are some way that financial information will be changed

What are some of the ways that financial information will be changed in the way the information is processed, gathered, and communicated because of changing information technology?

  Effects of transactions on various ratios

Selected amounts from Gullins Limited's balance sheet from the beginning of the year are shown below:

  Compute the ending inventory for each year

The following information relates to the Choctaw Company. Required - Compute the ending inventory for each year using the dollar value LIFO method

  What are the tax consequences of this liquidation

Ten years ago, Oreo Corporation purchased all of the stock of MilkDud Corporation for $800,000. In the current year, MilkDud Corporation is liquidated, and all of its assets (basis of $1,900,000; fair market value of $2.5 million) are distributed ..

  List the internal control weaknesses in alden procedures

Raw materials, which consist mainly of high- cost electronic components, are kept in a locked storeroom. List internal control weaknesses in Alden's procedures

  Double-entry accounting is an accounting system that

double-entry accounting is an accounting system that records each transaction twice. that records the effects of

  On november 7 2010 edward nicholson issued a check in the

on november 7 2010 edward nicholson issued a check in the amount of 21000 payable to the order of michael kittinger

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