Find the npv of the investment for consumers mfg

Assignment Help Managerial Accounting
Reference no: EM132721338

Problem 1: The management of Consumers Mfg. would like to purchase a specialized production machine for $95,000. The machine is expected to last three years, with a salvage value of $5,000. Annual maintenance costs will total $12,000, and annual labor and material savings are predicted to be $55,000. The company's required rate of return in 15%. Find the NPV of this investment.

A $6,466

B $1,406

C $2,811

D $5,623

Reference no: EM132721338

Questions Cloud

Find what beginning and ending amounts for walt disney : Year-end assets equaled $92,033 million. Equity $1,332 million during the year. What were beginning and ending amounts for Walt Disney's liabilities?
Genotypic and phenotypic distributions : What are the genotypic and phenotypic distributions for the F1 and F2 generations from a cross between a red (RR) carnation and a white
Competing products relative to the microsoft offerings : Discuss some pros and cons of these competing products relative to the Microsoft offerings
Replacement model in the evolution of the genus homo : What is the importance of the replacement model in the evolution of the genus Homo?
Find the npv of the investment for consumers mfg : Annual labor and material savings are predicted to be $55,000. The company's required rate of return in 15%. Find the NPV of this investment.
Describe the function of nervous system : Map out and describe the function of your nervous system responding to a mosquito. Include sensing, integrating signals that are carried out by the peripheral
Attacker to deliver payload through the cache : How should cache handling be accomplished in order to minimize the ability of the attacker to deliver a payload through the cache?
Find what is predetermined overhead rate for denominator : The Corporation's manufacturing overhead includes $7.10. What is the predetermined overhead rate for the denominator level of activity of 4,600 machine-hours?
Explain the pros and cons of the particular plans : Compare and Contrast TWO insurance/managed care companies and include: Three policy issues related to insurance/manage care facing the healthcare industry.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What are the activity-cost driver rates for design changes

Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?

  What is the importance of non-financial performance

Explain the importance of non-financial performance indicators in the modern competitive business environment, supporting your discussion with relevant.

  What were johnson company common fixed costs for last year

What were Johnson Company's common fixed costs for last year?Johnson Company operates two plants: Plant A and Plant B. Johnson Company reported

  What is the break-even point next year in sales dollars

Agate Corp manufactures and sells two types, Agate expects to have a total of $57,600 in fixed expenses. What's the break-even point next year in sales dollars?

  Explain the differences between a prime and conversion cost

Prepare Schedule of Cost of Goods Manufactured for 2019 and Cost of Goods Sold Report, for 2019.Explain the differences between a prime and conversion cost.

  Examine the management accounting related difficulties

Examine the management accounting related difficulties encountered within an internationally divisionalised organisation.

  What is the npv for the project for h cochran inc

If the required rate of return is 14 percent, what is the NPV for this project? H. Cochran, Inc., is considering a new three-year expansion project

  The reedy company uses a standard costing system

The actual direct labor rate for November is: A. $8.80B. $8.90C. $9.00D. $9.20

  What is the amount of total manufacturing cost for period

Jordan Sports Inc.What is the amount of total manufacturing cost for the period? (Enter your answer in millions rounded to 1 decimal place.)

  What was the cost of goods sold per shirt

$25 per machine hour, and Job #BUR2 required 800 machine hours. If Job #BUR2 consisted of 7,000 shirts, what was the Cost of Goods Sold per shirt?

  What is the required level of sales

If top flight sells tickets (seats) to passengers for $50 per one way trip, what is the required level of sales (in dollars and passengers) to break even?

  Calculate direct materials variances for zafu-products ltd

Calculate Direct Materials variances for Zafu-Products Ltd. You work for a consulting firm that recently got a contract from Zafu-Products Ltd to conduct

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