How long is the payback period for company

Assignment Help Managerial Accounting
Reference no: EM132990881

Problem 1: A company with $800,000 in operating assets is considering purchasing a machine that costs $300,000 with an estimated salvage value of $40,000. The acquisition is expected to reduce operating costs by $55,000 in year 1, with a $5,000 increase in cost savings per year for each of the remaining years of its 6-year life. How long is the payback period?

A. 5.7 years

B. 4.7 years

C. 5.5 years

D. 4.4 years

Reference no: EM132990881

Questions Cloud

What is a plan for ongoing improvement : What is a plan for ongoing improvement and increased capability based on an evaluation of an organization's systemic constraints when a factory plant can't get
How much fixed manufacturing overhead will be expensed : How much fixed manufacturing overhead will be expensed during the year using full costing? Winslee Widgets during the company's first year of operations
Define mindset and describe how mindset relates to Reggie : Define mindset and describe how mindset relates to Reggie's reaction to the compliance test. Write a paragraph to define mindset
Explain groups that may be impacted by the technology : Provide a two- to three-sentence goal statement for your technology. What is the intended impact?
How long is the payback period for company : $55,000 in year 1, with a $5,000 increase in cost savings per year for each of the remaining years of its 6-year life. How long is the payback period?
Elaborate contemporary or emerging issues in leadership : Elaborate the Contemporary or Emerging issues in Leadership with a case or an example.
Prepare direct material purchase budget for company : Company is preparing budget for fourth quarter,Prepare direct material purchase budget, schedule of expected cash payment and direct labor budget for quarter 4.
What time series analysis as an analytical technique : Can you explain what Time series analysis as an analytical technique for case studies.
What are the changes in trade and tariffs : What are the changes in trade and tariffs that have happened from the GATT era to the period of WTO?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Classify each of the activities as either a unit-level

Classify each of the activities above as either a unit-level, batch-level, product-level, or organization-sustaining activity. The following activities occur

  How classified a a factory overhead cost by a baking company

Which of the following would be classified as a factory overhead cost by a baking company? Freight costs to deliver baked goods to the customer

  What amount must be remitted to the state for february

Total receipts for February amounted to $38,160. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes?

  Determine tina capital gains status

Tina had a capital loss of $12,000 in 2019 and $6,000 in 2018 that were not utilized in 2019; Determine Tina capital gains status

  How much is the ending inventory of the branch per books

A Makati home office transfers inventory to its Pasig branch at 140% of cost. How much is the ending inventory of the branch per books

  What is the financial advantage or disadvantage

At the same time, discontinuing slow cookers will have no effect on other products. What is the financial advantage or disadvantage of discontinuing slow cooker

  How much cash can LeMinton Company expect

The remainder is uncollectible. How much cash can LeMinton Company expect to collect in March as a result of credit sales (current and past)

  How do think will use managerial accounting

How do you think you will use managerial accounting in your career to make strategic business decisions? Explain in detail with an example.

  How financial statement data prepare in accordance with gaap

Adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP.

  Determine if each investment is acceptable

Rank the acceptable investments in order from most desirable to least desirable. Acceptable investments are those which are not rejected

  What economic order quantity for katoomba furniture company

Required other costs per year $14.00). Annual demand is 1000 tables per year. The purchase price per table is $1600. What is the economic order quantity (EOQ)?

  Calculate total expenses for the first term

Calculate your total expenses for the first term and your personal equity (deficit) at December 15, 2018. Assume the $200 cellphone you started with

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