How much new capital will be required

Assignment Help Accounting Basics
Reference no: EM133105030

Question - A firm purchased 12-years ago a computerized machine worth P 613,011. As the life of the machine was 20 years, funds are reserved based on a Sinking-Fund method of depreciation. Now the firm wishes to replace it with a current model possessing several advantages. The firm can sell it today for P 89,286. The new machine will cost P 1,137,024. How much new capital will be required to make the purchase? Assume interest to be 23% cpd-a.

Reference no: EM133105030

Questions Cloud

Analysis of the current state of own company : Place yourself in the role of an internal consultant in the organization you currently work for, or one you have worked for recently. You have been tasked with
Professional or human being in the assigned habit : Prepare your habit collaboratively in the way that answers the following questions.
What is indicated by a net present value of exactly zero : What is indicated by a net present value of exactly zero? Will the proposed project of zero net present value be accepted? Explain your answer
Understanding work teams : What are the reasons for the growing popularity of teams in organizations? How can organizations create team players?
How much new capital will be required : The new machine will cost P 1,137,024. How much new capital will be required to make the purchase? Assume interest to be 23% cpd-a
Nonverbal communication to enhance negotiations : Describe how international negotiators can utilize nonverbal communication to enhance negotiations between different foreign cultures.
What is contract gain or loss on hedge on exposed position : On the same date the company acquired forward contract to buy 120,000 foreign currency in 90 days. What is contract gain or loss on hedge on exposed position
Discuss rationales for why the workplace environments : Discuss rationales for why the workplace environments of today are changing. What are some new workplace trends?
Performance lawn equipment : Elizabeth Burke has received several questions from other PLE managers regarding quality, customer satisfaction, and operational performance.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate jamaica tour end-of-year balance

The company reported net income for the year of $284 million and paid dividends of $17 million to the preferred stockholders and $59 million to common stockholders. Calculate Jamaica Tour's end-of-year balance in retained earnings.

  Find the rival firm cost of unlevered equity

Find the rival firm's cost of unlevered equity and use it to estimate the NPV of the project under the WACC approach. Do not round intermediate steps

  Budgeted cash sales and budgeted credit sales

Hewitt Company expects cash sales of July of $15,000, and a 22% monthly increase during August and September. Credit sales of $10,000 in July should be followed by 30% increases during August and September. What are budgeted cash sales and budgete..

  Components of measuring the economic damages

What are the components of measuring the economic damages from the loss of household services?

  What would be the estimate of total overhead costs in july

Using the resulting cost function, what would be the estimate of total overhead costs in July

  What the amount to be reported as total assets of combined

Find what the amount to be reported as total assets of the combined entities immediately following the business combination is

  What is rachelles tax basis in stock received in exchange

Rachelle transfers property with a tax basis of $800 and a fair market value of $900. What is Rachelle's tax basis in the stock received in the exchange?

  Prepare an amortization schedule

Grace uses the effective-interest method for amortizing debt. Her ski hill company's year-end will be June 30. Prepare an amortization schedule for the 5 years

  Offered to sell byron the component

An outside supplier has offered to sell Byron the component for $17. If Bryon purchases the component from the outside supplier, fixed costs would be reduced by $20,000. The manufacturing facilities would be unused and could be rented out for $10,..

  How many units will the company need to sell for profit

XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit, and fixed costs of $300,000. The company is considering.

  The per-unit standard for direct labor are 2 direct labor

the per-unit standard for direct labor are 2 direct labor hours at 12 per hour. if in producing 1200 units the actual

  Problem - Foreign Market Entry Podcast

Foreign Market Entry Podcast. First identify the countries your mentor marketer does business in. What specific challenges did entering this market present

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