User Account

All Pages

How much will prince company be willing to pay for machine

Assignment Help Managerial Accounting
Reference no: EM132587257

Prince Company's required rate of return is 10%. The company is considering the purchase of three machines, as indicated below. Consider each machine independently.

Required:

Question a. Machine A will cost $25,000 and have a life of 15 years. Its salvage value will be $1,000, and cost savings are projected at $3,500 per year. Compute the machine's net present value.

Question b. How much will Prince Company be willing to pay for Machine B if the machine promises annual cash inflows of $5,000 per year for 8 years?

Question c. Machine C has a projected life of 10 years. What is the machine's internal rate of return, to the nearest whole percent, if it costs $30,000 and will save $6,000 annually in cash operating costs? Would you recommend purchase? Can you Explain?

Reference no: EM132587257

Questions Cloud

How compatible are interests of workers and employers : How compatible are the interests of workers and their employers? how workers' knowledge is used? Does the requirement by organizationsean conflict is likely
Solve the product contribution margin : Solve The product's contribution margin, Break-even quantity, NPV, IRR.Sales price is expected to be $2,250 per unit, with $595 per unit in labor expense
How much would Agale report for cost of goods manufactured : If beginning finished goods inventory was $25,000 and cost of goods sold was $75,000, how much would Agale report for cost of goods manufactured
Best way to communicate the project baseline : What is the best way to communicate the project baseline? Who develops the project baseline? Who decides if the baseline is acceptable? Who approves it?
How much will prince company be willing to pay for machine : How much will Prince Company be willing to pay for Machine B if the machine promises annual cash inflows of $5,000 per year for 8 years?
What amount of interest expense should Source for Sports : On November 16, 2015, Kinsmen Sports gave Source for Sports a 120-day, 8%, What amount of interest expense should Source for Sports
Discuss the assumptions that must be made about the data : Discuss the assumptions that must be made about the data in order to use the Wilcoxon. What is the rationale for the test statistics used in the Wilcoxon Signed
Applying lessons learned from project scheduling : What tools and techniques have you learned in this course? How do you intend to apply these concepts in your workplace?
Find the simple rate of return on the investment : Determine the simple rate of return on the investment to the nearest tenth of a percent?The management of Rexwinkle Corporation is investigating automating

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What price-bidding decision for one-time-only special order

What A price-bidding decision for a one-time-only special order includes an analysis of?all costs of each function in the value chain

  Compute the price and quantity variances for direct material

Compute the total overhead variance - Prepare an income statement for management - Compute the price and quantity variances for direct materials

  Questionon the third day in your role as accountant the

questionon the third day in your role as accountant the general manager has asked you to review the results of 2012 and

  Allocating the variable costs of service departments

Problem: Why should budgeted cost rates, rather than actual cost rates, be used for allocating the variable costs of service departments?

  Prepare sales budget and a schedule of expected cash

Prepare the SALES BUDGET AND A SCHEDULE OF EXPECTED CASH COLLECTIONS budgets and schedules for the year, showing both quarterly and total figures

  Find departmental wage expenses for dept

They should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are

  The porter company has a standard cost system

The Porter Company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 Unfavorable; and the standard quantity of materials allowe..

  What is dominguez cost to do the job for mcdermott

What is Dominguez cost to do the job for McDermott? Dominguez Company allocates overhead on the basis of Direct Materials Dollars ($DM).

  Do think the purchasing manager was correct to buy

Purchasing Manager and the Production Manager. Do you think the Purchasing Manager was correct to buy cloth at £4.25 if it was responcible

  What is navy break-even point in sales dollars

Blue Company's sales were $750,000 and variable cost was $175,000. Total fixed costs are $150,000. What is Navy's break-even point in sales dollars?

  Explain how overhead is assigned to production

Explain how overhead is assigned to production when a predetermined overhead rate is used. Assume that a company has decided not to allocate

  Evaluate the performance of the production department

KPN Ltd. has 20 plants in its production department. Evaluate the performance of the Production department on the basis of Cost Centre and Profit Centre.

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