Estimated residual value

Assignment Help Financial Management
Reference no: EM13804393

A machine cost $70,200; it has an estimated residual value of $6,000 and an expected life of 300,000 units.

What would be the depreciation in year three if 60,000 units were produced? Please show all work.

Reference no: EM13804393

Questions Cloud

Equity used is from retained earnings : Quinlan Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end (D1 = $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. The before-tax cost of debt is 7.50%, and the tax rate is..
Comment on the acceptability of the project : Calculate the net present value for a 10-year project with an initial investment of 10,000 and a cash inflow of 4,000 per year. Assume that the firm has an opportunity cost of 13%. Comment on the acceptability of the project.
Currency appreciation : Suppose that the exchange rate is 0.80 dollars per Swiss franc. If the franc appreciated 9% against the dollar, how many francs would a dollar buy tomorrow?
Cost of trade credit : A large retailer obtains merchandise under the credit terms of 3/10, net 35, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..
Estimated residual value : A machine cost $70,200; it has an estimated residual value of $6,000 and an expected life of 300,000 units. What would be the depreciation in year three if 60,000 units were produced?
Using spot and forward exchange rates : Using Spot and Forward Exchange Rates Suppose the spot exchange rate for the Canadian dollar is Can$1.04 and the six-month forward rate is Can$1.06.  Which is worth more, a U.S. dollar or a Canadian dollar?
The existence of unemployment compensation : The existence of unemployment compensation most likely will cause less unemployment.
Assuming a tax rate-depreciation expenses : Assuming a tax rate of 35%, depreciation expenses of $400,000 will
Compute the earnings per share : Jacbs Corporation earned $2 million after tax. the firm has 1.6 million shares of common stock outstanding. Compute the earnings per share of Jacobs? If Jacob dividend policy calls for a 40 percent payout ratio what are the dividends per share

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the total finance charge and annual allocation

Explain why Believer believes this lease should be categorised as a finance lease. You should refer to relevant international accounting standards to justify your answer.

  What is a measure of the sensitivity of a stock

What is a measure of the sensitivity of a stock or portfolio to market risk?

  What will be the amount of deposits at the end

What will be the amount of deposits at the end of each year if it is compounded at 12% semi-annually

  What bid price per widget should you submit

You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land today, it would ..

  What is optimal solution and which constraints are binding

Stoneware Pottery Company wants to determine how many bowls and mugs should be produced per day in order to maximize profit given the labor and material constraints. The unit profit value for Bowls is $40 per unit, for mugs the unit profit value is $..

  Devise a benchmarking review for anthonys orchard

Devise a benchmarking review for Anthony's Orchard. To do this, discuss recommended strategies and measures that will be useful to measure progress towards the objective in your gap analysis.

  Compute the prospective rate of return before taxes

A project has an initial cost of $150,000 and an estimated salvage value after 13 years of $90,000. Estimated average annual receipts are $27,000. Estimated average annual disbursements are $16,000. Assuming that annual receipts and disbursements wil..

  What monetary and fiscal policies

What monetary and fiscal policies might be prescribed for an economy in a deep recession and choose an industry and identify the factors that will determine its performance in the next 3 years. What is your forecast for performance in that time per..

  Difference between normal goods and inferior goods

Discuss the difference between substitutes and complements and the difference between normal goods and inferior goods. How do managers and business owners use these concepts? Please provide real world examples.

  Yield that trevor would earn by selling the bonds today

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $936.05. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,048.77, what is the yield that Trevor would earn by sell..

  Constant growth rate-investors required rate of return

Calculate the price that you would be willing to pay for a constant growth stock that has the following characteristics: (a) Annual Dividend: $1.23, (b) Constant Growth Rate: 5.6%, and (c) Investor’s required rate of return: 6.5%.

  Next payment and payment at maturity

You purchase 2,500 bonds with a par value of $1,000 for $985 each. The bonds have a coupon rate of 7.7 percent paid semi-annually, and mature in 10 years. How much will you receive on the next coupon date?

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