User Account

All Pages

How much additional revenue would the equipment

Assignment Help Accounting Basics
Reference no: EM132886662

Question - (Ignore income taxes in this problem.) The management of a park is considering purchasing a new equipment for $40,000 that would have a useful life of 10 years and a salvage value of $5,000. The equipment would require annual operating costs of $21,000 throughout its useful life. The company's discount rate is 13%. Management is unsure about how much additional ticket revenue the new equipment would generate particularly since customers pay a flat fee when they enter the park that entitles them to unlimited use. Hopefully, the presence of the equipment would attract new customers. How much additional revenue would the equipment have to generate per year to make it an attractive investment?

Reference no: EM132886662

Questions Cloud

Describe the dimensions of competency : Describe the dimensions of competency. Use approximately 20-50 words to complete this entire question and Provide an example of how you would cover
What was your initial deposit amount : Three years ago, you withdrew $12,000 to buy a motor cycle. What was your initial deposit amount, eight years ago
Create an argument in favor of or opposed to the use : Create an argument in favor of or opposed to the use of the electoral college. List at least three valid points to support your argument.
What impact have blogs-social networking sites : What impact have blogs, social networking sites, RSS, and other "new media" formats had on the reporting of a crisis?
How much additional revenue would the equipment : How much additional revenue would the equipment have to generate per year to make it an attractive investment
Why does governance matter for economic development : What are the origins of ‘good governance' as a concept? And what are its main critiques? Why does 'governance' matter for economic development
Legal developments in particular areas of law : Many sites on the Internet contain information about legal developments in particular areas of the law.
How would define leadership : To the extent that leadership is an art, what methods come to mind for improving one's "art of leadership" now? How would you define leadership?
What is the gross profit : In 2020, he bought 10 textbooks at $1,000 and sold 5 of them at $600. There is no other transaction during 2020. What is the gross profit in 2020

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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