User Account

All Pages

Determine the net present value of the equipment is

Assignment Help Managerial Accounting
Reference no: EM132502196

Consider the following information:

Initial cost of equipment $108,000

Sales tax and delivery costs $7,000

Estimated life 7 years

Salvage value $11,000

Annual cash inflows $31,000

Estimated cost of capital 13%

Question 1: Without considering the effect of income taxes, the net present value of the equipment is:

Option 1) $113,000

Option 2) $26,777

Option 3) $22,082

Option 4) $29,101

Option 5) $33,757

Option 6) ($77,000)

Reference no: EM132502196

Questions Cloud

BLO3405 Law Of Financial Institutions And Securities : BLO3405 Law Of Financial Institutions And Securities Assignment Help and Solution - Victoria University - Assessment Writing Service
What payback period for project that has initial investment : What is the payback period for a project that has an initial investment of $117,000 and $10,000 net cash inflow in the first year, with a $1,000 increase
Describing the key performance measures within your company : Complete an analysis describing the key performance measures within your company department or division or select a fortune 500 company department or division.
Does the cost justify the hris investment : Imagine a vendor responded to your request for a HRIS proposal. What are the indirect/direct costs and benefits of the HRIS? What is the cost of implementation.
Determine the net present value of the equipment is : Without considering the effect of income taxes, the net present value of the equipment is? Initial cost of equipment, Sales tax and delivery costs
Prepare the pro-forma financial statement : Prepare the pro-forma financial statement for your proposed business idea for the first year of the business - Depending on the previous information
Explain the importance of effective job design applications : Examine the four (4) approaches to job design/redesign and provide an example (not a definition) of each. Then, make a case to the interviewing panel.
What estimated raw material inventory balance at of end july : If 106,000 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July?
Show the financial feasibility of this investment : Show the financial feasibility of this investment using net present value technique assuming that cash flows are not discounted and the discount price

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the per-unit contribution margin for both models

During the past 15 months, a new product has been under development that allows users handheld access to e-mail and video images. - Compute the per-unit contribution margin for both models

  Determine the departmental support cost driver rates

Determine the departmental support cost driver rates and support costs applied to job ST101, assuming that machine hours are used as the cost driver

  Preparing a participatory master budget

Discuss the advantages and disadvantages of preparing a participatory master budget - Explain how standard costs help managers apply this concept

  Describe some controls that parents

Describe some controls that parents use to keep their homes safe for themselves and their children.

  Can standard costing be used in job order costing

Can standard costing be used in job-order costing? If so, what conditions must exist? If not, explain why.

  Direct materials are added at the beginning

Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process.

  Prepare a report for nagasai motoko

Prepare a report for Nagasai Motoko that addresses all the issues in the above exchanges - Western Australia and is run as a stand-alone business

  Higher level of understanding of accounting standards

Demonstrate a higher level of understanding of accounting standards and theoretical and philosophical approaches, as they apply to the resolution of more complex accounting problems - Making sense of company executives' compensation and employee be..

  Prepare absorption costing income statements

If the company wishes to earn an after-tax income of $3,000,000, what is the break even in units?  Assume that the corporate income tax rate is 40%.

  Analyse the roles of cost and management in organisations

ACC702 - Managerial Accounting Assignment. Analyse the roles of cost and management in organisations through the analysis of accounting concepts and tools

  Full service station is planning to invest in automatic car

Full Service station is planning to invest in automatic car wash equipment valued at 210,000. the owner estimates that the equipment will increase annual net cash inflows by 40,000. the equipment is  expected to have a 10 year useful life with an est..

  Cadence and cross master and departmental budgets

Five years ago, Jack Cadence left his position at the large company to start Advanced Technologies Co. (ATC), a software design company. ATC's first product was the unique software package which seamlessly integrates networked PCs.

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