How much is the salvage value cash flow for the machinery

Assignment Help Managerial Accounting
Reference no: EM132791598

Problem 1 : The president of the company you work for has asked you to evaluatethe proposed acquisition of a new chromatograph for the firm s R& ;D department. The equipment s basic price is $74,196, and it would cost another $8,244 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $29,678. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,363. The machine would have no effect on revenues, but it is expected to save the firm $32,079 per year in before-tax operating costs, mainly labor. The firm s marginal federal-plus-state tax rate is 21.0% and its cost of capital is 14.0%. How much is the salvage value cash flow for the machinery at the end of project's life?

Reference no: EM132791598

Questions Cloud

Identify five users of ham ltd financial statements : Identify five users of ham ltd's financial statements and a possible reason why each user might require access to the financial statements
Calculate the carrying amount at the end : Calculate the carrying amount at the end of 2020 for the machine when the company is using the Straight-line depreciation method
How much impairment loss should the bank recognize : The present value of an ordinary annuity of 1 at 12% for 3 years is 2.40183. How much impairment loss should the bank recognize on December 31, 2020
Implementing an effective psm system : How would implementing an effective PSM system affect organizational accident prevention efforts? What other benefits can be derived from having such a system i
How much is the salvage value cash flow for the machinery : Federal-plus-state tax rate is 21.0% and its cost of capital is 14.0%. How much is the salvage value cash flow for the machinery at the end of project's life?
Non-instantaneous economic order quantity : The production rate is 100 units per day while the item is being produced. What is the non-instantaneous economic order quantity?
Prepare year-end adjusting entry to record bad debts expense : Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $2,006 credit balance
Type of environmental scanning processes : What type of environmental scanning processes are the most commonly used within organizations and how are they effective?
How much should contribute into the savings account annual : You would like to begin saving for child, How much should you contribute into the savings account annually to have enough saved when your child begins college?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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