How much would the reduction in downtime have to be worth

Assignment Help Managerial Accounting
Reference no: EM132808217

Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $205,900 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $31,300. Management also believes that the new bottling machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 6%. Click here to view PV table.

Problem 1: Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.)

Problem 2: How much would the reduction in downtime have to be worth in order for the project to be acceptable?

Reference no: EM132808217

Questions Cloud

Different type of performance evaluation-appraisal technique : There are different type of performance evaluation and appraisal techniques within the workplace, such as assessment of traits, achievements and competency.
Describe the pleistocene epoch : Describe the Pleistocene epoch and its pre-modern human hominin inhabitants including anatomy, culture, and subsistence?
Genetically Modified Organisms : Describe two specific examples of a commercially used GMO. What are the benefits of GM foods, in general?
Explain the burke-litwin model for change : Explain the Burke - Litwin model for change in the context of organization development with the help of an example.
How much would the reduction in downtime have to be worth : How much would the reduction in downtime have to be worth in order for the project to be acceptable? Calculate the net present value.
What features of website do you like and dislike : Is the website published by a reputable source? Is the website easy to navigate? What features of this website do you like and dislike?
Greatest potential positive effect on food security : As Hite and Seitz (2016) discuss in Chapter 8, "Technology," technological advancements and changes may affect how we can work to find solutions
What is the journal entry that would be made by abc corp : ABC Corporation, a private corporation, What is the journal entry that would be made by ABC Corporation on January 1, 2020?
Differentiate between morale and motivation : Differentiate between morale and motivation. Analyze some excellent ways to increase the level of employee morale and motivation without incurring

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Perform a comparative analysis of sources of fund

HA2032 Corporate and Financial Accounting Individual Assignment - Perform comparative analysis of sources of fund used by two selected companies

  How much of the account inquiry cost will be assigned

How much of the account inquiry cost will be assigned to Department A? What is the learning-curve percentage, assuming the cumulative average-time method?

  Explain the perceived barriers to management accountants

Explain any FIVE (5) perceived barriers to management accountants' involvement in management accounting practices for sustainable development activities.

  What are yg after-tax cost of debt and after-tax cost

What are YG's after-tax cost of debt and after-tax cost of preferred shares for the purpose of determining the weighted average cost of capital

  Compute the revised break-even point in dollars

It will decrease variable costs by $3.50 per unit. Compute the revised break-even point in dollars with the purchase of the new machine.

  What is the product cost for the expansion product

What is the product cost for the expansion product under absorption and variable costing? By adding this new expansion product, it helps to absorb the fixed

  Determine the maximum amount that mr faisal din can pay

Using cost-volume-profit (CVP) analysis and the data provided, determine the maximum amount that Mr. Faisal Din can pay for the trucks

  Produce a cash budget for the first quarter

Produce a cash budget for the first quarter of 2018. The company expected to collect 60% of their sales in the month of sales, 30% in the second month

  Direct labor and the remainder was for indirect labor

$84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $108,000 were incurred. Of this amount, $105,000 was for direct lab..

  Journalize the transactions of april 27

Journalize the transactions of April 27, July 13, and October 8 and what is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

  With respect to overhead, what is the opportunity cost

Discuss how an allocation of overhead based on opportunity cost would facilitate an appropriate bidding decision.

  Calculate the total factory overhead cost variance

Calculate the (a) total factory overhead cost variance, (b) total flexible-budget variance, and (c) the production volume variance for the month

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