Determine the payback period for machine

Assignment Help Business Management
Reference no: EM132343709

Payback comparisons----Nova Products has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternatives. The first machine requires an initial investment of ?$30000 and generates annual? after-tax cash inflows of $3 800 for each of the next 12 years. The second machine requires an initial investment of $36 000 and provides an annual cash inflow after taxes of $7500 for 9 years. You must MUST use at least one of the following Excel functions to answer at least one part of this question: FV, PV, PMT, RATE, NPER, NPV, AVERAGE, STDEV, and IRR.

a. Determine the payback period for each machine.

b. Comment on the acceptability of the? machines, assuming that they are independent projects.

c. Which machine should the firm? accept? Why?

d. Do the machines in this problem illustrate any of the weaknesses of using? payback?

Reference no: EM132343709

Questions Cloud

Concerns surrounding the care and management of the illness : Analyze the issues and concerns surrounding the care and management of the illness. Explain how you as a medical social worker might address the struggles
Calculate the weighted average cost of capital : You must MUST use at least one of the following Excel functions to answer at least one part of the question: FV, PV, PMT, RATE, NPER, NPV, AVERAGE, STDEV
The evaluation of a potential business : ENTREPRENEURSHIP AND NEW VENTURE CREATION - The evaluation of a potential business - Thinking about a specific opportunity that you have considered.
Analyse the key factors which drive globalisation : Higher National Diploma in Business Level 5- Global Business Environment-Evaluate the influence of globalisation on organisational decision making and strategy
Determine the payback period for machine : Determine the payback period for each machine. Comment on the acceptability of the? machines, assuming that they are independent projects.
Identify intergenerational and intragenerational mobility : Identify intergenerational mobility and intragenerational mobility and give example to illustrate them. Explain model of American class structure and lifestyles
Identify how organisations plan recruitment : Level 3 Diploma in Skills for Business: Human Resources - 601/2649/8- Recruitment and selection in business T/505/9792-How organisations plan recruitments.
Differences between the capital allocation line : What are the differences between the Capital Allocation Line (CAL) and Security Market Line (SML)? How could we use them? Please provide examples.
You borrowed $100,000 exactly 4 years ago : You borrowed $100,000 exactly 4 years ago. The loan structure is an amortized loan. The interest rate is 7% and you make quarterly(end of quarter)

Reviews

Write a Review

Business Management Questions & Answers

  Experience as a result of their last name

What are some privileges that people might experience as a result of their last name?

  Describe the six elements of the external environment

Discuss and describe the six elements of the external environment. How is "strategic management" defined in the text, and what are its four key attributes

  With increased compliance and quality improvement cost

With increased compliance and quality improvement cost , organizations face challenges in aligning strategic planning to accommodate

  How an interrupt handler would address the event

Outline the process that occurs when a hardware interrupt is generated by a disk controller. Set the context for the interrupt (disk read or write) and describe how an interrupt handler would address the event.

  Provide a precise definition for motivation

1. Provide a precise definition for motivation. 2. What can a manager do to improve their employees' motivation?

  Christian ethics in particular

Why do you think the study of ethics in general, and Christian ethics in particular, are vitally important for thinking about business and economic behavior

  Purchasing lab equipment

With Federal Funds to be furnished in three payments over 18 months from date of funding: Construction of the clinic building of 6,000 square feet and small parking lot, including purchasing lab equipment and an X-ray machine

  Present a thorough analysis of economic growth

Present a thorough analysis of economic growth. What are the factors that contribute to economic growth? Provide your perspective as to what our society can do to enhance economic growth.

  Leadership effectiveness

Which Big 5 characteristic do you think most strongly correlates with leadership effectiveness and why?

  Internet as a mechanism to cross cultural barriers

Advancements in technology: internet as a mechanism to cross cultural barriers

  Amount of product differentiation

If the amount of product differentiation in a monopolistically competitive industry is very small, the outcome in that market.

  Treatment of indigenous people

What suggestions would you make to the Brazilian government to improve their treatment of indigenous people, so they don't follow in the footsteps of the United

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