Kolbys korndogs is looking at a new sausage system with an

Assignment Help Accounting Basics
Reference no: EM13567464

Kolby's Korndogs is looking at a new sausage system with an installed cost of $924,000. This cost will be depreciated straight-line to zero over the project's seven-year life, at the end of which the sausage system can be scrapped for $109,000. The sausage system will save the firm $197,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $55,000.

Required:

If the tax rate is 30 percent and the discount rate is 6 percent, what is the NPV of this project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM13567464

Questions Cloud

If the company keeps and overhauls the old boat it will be : little boat inc. has a boat that is worn out.nbspnbspit must be either overhauled or replaced with a new boat. you have
For supply item abc andrews company has been ordering 125 : for supply item abc andrews company has been ordering 125 units based on the recommendation of the salesperson who
Analyze one 1 of the following case studies via an essay : part 1 analyze one 1 of the following case studies via an essay. your answer should demonstrate sound moral reasoning
You have 4014629 in a brokerage account and you plan to : you have 40146.29 in a brokerage account and you plan to deposit an additional 6500 at the end of every future year
Kolbys korndogs is looking at a new sausage system with an : kolbys korndogs is looking at a new sausage system with an installed cost of 924000. this cost will be depreciated
Margaret river wines mrw has a project available that will : margaret river wines mrw has a project available that will provide after-tax cash flows of 215 000 for the next eight
Based on the corporate valuation model morgan incs value of : based on the corporate valuation model morgan inc.s value of operations is 300 million. the balance sheet shows 90
Fiji light industries shares have a beta of 12 the company : fiji light industries shares have a beta of 1.2. the company has just paid a dividend of 0.80 and the dividends are
Current stock price 16 strike price of option 12 time to : assume you have been given the following information on purcell industries current stock price 16 strike price of

Reviews

Write a Review

Accounting Basics Questions & Answers

  Her supervisor financial vice president dick wright prefers

the market value of lake corporations inventory has declined below its cost. sheryl conan the controller wants to use

  Financial statement fraud is common these days phrases like

financial statement fraud is common these days. phrases like earnings management cookie jar accounting and accounting

  How long the company owned the asset

A depreciable asset currently has a $24,500 book value. The company owning the asset uses straight-line depreciation. They paid $37,000 for this asset and consider it to have a $2,000 salvage value with a seven year useful life. How long has the c..

  Tax consequences of the liquidation

In a liquidation subject to section 332, Rose distributies assets to Pheasant and Crystal in accordance with their ownership intersts. Discuss the tax consequences of the liquidation for Rose, Pheasant, and Crystal.

  Prepare accounting entry by acquisition and purchase method

Prepare Pelham's accounting entry to record the combination with Sampras using the acquisition method and purchase method."

  Hodge corporation issued 100000 shares of 20 par value

hodge corporation issued 100000 shares of 20 par value cumulative 6 preferred stock on jan 1 2013 for 2300000. in

  Methods of determining bad debt expense

Which of the following methods of determining bad debt expense does not properly match expense against revenue?

  Possible violations of securities laws

The SEC's Enforcement Division investigates possible violations of securities laws, recommends SEC action when appropriate, either in a federal court or before an administrative law judge, and negotiates settlements.

  Hamilton company manufactures engines hamilton produces all

hamilton company manufactures engines. hamilton produces all the parts necessary for its engines except for one

  What are the average total cost

What are the average total cost, average variable cost, and marginal cost for these output levels?

  Determine the rate earned on total assets the rate earned

profitability ratios the following selected data were taken from the financial statements of squiggle group inc. for

  Abc company has office furniture that cost 40000 an

abc company has office furniture that cost 40000 an estimated life of 10 years and a 4000 salvage value. as of january

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