Kolbys korndogs is looking at a new sausage system with an

Assignment Help Accounting Basics
Reference no: EM13570277

Kolby's Korndogs is looking at a new sausage system with an installed cost of $777,000. This cost will be depreciated straight-line to zero over the project's six-year life, at the end of which the sausage system can be scrapped for $104,000. The sausage system will save the firm $192,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $50,000. If the tax rate is 35 percent and the discount rate is 7 percent, what is the NPV of this project?

Reference no: EM13570277

Questions Cloud

Business during the month of july a home improvement store : business during the month of july a home improvement store sold a great many air-conditioning units but some were
Compute the following cash collection cost recovery gross : ajax company appropriately accounts for certain sales using the installment sales method. the perpetual inventory
On janurary 1 2010 bukner steel co issued a 300000 3 year 6 : on janurary 1 2010 bukner steel co. issued a 300000 3 year 6 installment note payable with payments of 100000 principle
Lopez company has been approached by a new customer to : lopez company has been approached by a new customer to provide 2000 units of its regular product at a special price of
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 777000. this cost will be depreciated
Book review on ali eteraz book children of the dust 4 : book review on ali eteraz book children of the dust 4 pages 12 point font new times roman no plagiarized materials
You are considering a project with an initial cash outlay : you are considering a project with an initial cash outlay of 80000 adn expected free cash flows of 20000 at the end of
Bonds comprise 74 of total long-term debt what would be : the long -term debt of duplex co. consists of bonds with an average cost of 7.5 and term loans. if the firms tax rate
A proposed new investment has projected sales of 832000 : a proposed new investment has projected sales of 832000. variable costs are 57 percent of sales and fixed costs are

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why is cost accounting so important to the success of the

why is cost accounting so important to the success of the firm? what are the various methods of cost accounting and how

  Write down a 250- to 350-word paper describing why

write a 250- to 350-word paper explaining why preferred stock is referred to as preferred and what some of the

  Prepaid expenses and accounts payable

A company had net income of $242,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2000 and $4000, respectively. T..

  Coral gables electronics is considering reorganizing

Coral Gables Electronics is considering reorganizing its plant into manufacturing cells. The company has the following information:

  Question 1nbsp an audit client is being sued for 500000 for

question 1.nbsp an audit client is being sued for 500000 for discriminatory hiring practices.required indicate the

  Us federal income tax return

US Federal Income Tax Return

  Computation of expenses on the accrual basis

Expensens accrued and still unpaid were $6,000 as at December 31, 2007, and $9,000 as at December 31, 2008. Can you show the computation of expenses on the accrual basis for the year 2008?

  What is the net income when stock was issued

What is the net income assuming that $15,000 of dividends were paidand $$20,000 of stock was issued (ignore taxes)?

  What are the combined total department costs

What are the combined total department costs for the producing departments after allocating the service department costs?

  Valhalla company determine the activity rates for each

the valhalla company manufactures small lamps and desk lamps. the following shows the activities per product set-ups

  The most likely reason for allocating all corporate costs

the most likely reason for allocating all corporate costs to divisions include that divisions receive benefits from all

  Practical capacity and master-budget capacity

"The difference between practical capacity and master-budget capacity utilization is the best measure of management's ability to balance the costs of having too much capacity and having too little capacity." Do you agree with this statement? Why o..

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