User Account

All Pages

Net present value of the investment of machine

Assignment Help Accounting Basics
Reference no: EM13136170

The management of Kunkel Company is considering the purchase of a $27,000 machine that would reduce operating costs by $4,200 per year. At the end of the machine's eight-year useful life, it will have zero scrap value. The company's required rate of return is 13%. (Ignore income taxes.)What is the net present value of the investment of the machine?

Reference no: EM13136170

Questions Cloud

What is the net effect on appraisal costs : What is the net effect on appraisal costs for 20X6, assuming the new receiving method is implemented and that 800,000 material units are received?
Four tactics used by interest groups : Discuss four tactics used by interest groups and include specific examples of each tactic.
Calculate the equilibrium partial pressures of co2 : Consider the heterogeneous equilibrium process shown below. C(s) + CO2(g) 2 CO(g) At 700.°C, the total pressure of the system is found to be 3.20 atm. If the equilibrium constant KP is 1.52,
Sample mean price falls within nickel of overall mean price : The sample mean price is computed from the prices at these gas stations. What is the probability that the sample mean price falls within a nickel of the State's overall mean price? i.e between 3.09 and 3.19.
Net present value of the investment of machine : The company's required rate of return is 13%. (Ignore income taxes.)What is the net present value of the investment of the machine?
What are tax consequences to justin for these expenditure : legal and accounting fees to set the business up and $9,000 for staff training. What are the tax consequences to Justin for these expenditures when the restaurant opens in July? For Rachel?
Candidate platforms overtaken : Can you explain to me how political parties/interest groups/agendas/platforms overtake an individual candidate's message and programming when he/she runs for office?
Presidential and parliamentary : In your own words, can you explain the advantages and disadvantages of the Presidential system in the United States and the Parliamentary system of the United Kingdom?
Calculate the number of grams of kclo3 needed : Calculate the number of grams of KClO3 needed to make 400 mL of 0.913 M solution.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem regarding partnership

Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year.

  Economic order quantity-ordering costs

Monthly demand for an inventory item currently averages 160 units. The annual carrying cost is $10 per unit. Ordering cost is $60 per order. This information applies to all of the questions on this page.

  Is curve-lm curve-equilibrium

Consider the following economy: Write numerical formula for IS curve. Write numerical formula for LM curve. What is equilibrium level of r?

  Cost of equity capital-allegheny valley power company

The Allegheny Valley Power Company common stock has a beta of 0.80. If the current risk-free rate is 6.5%(Krf)and the expected return on the common stock as a whole is 16%(Km)

  Formula for calculating the adjusted basis of property

Identify and describe the general formula for calculating the adjusted basis of property.

  Accounting issues-ifrs and us gaap

Identify three major accounting issues on which IFRS and US GAAP currently differ. For each, outline briefly the nature of the divergence, and discuss the potential impact if the IFRS position is adopted in the US.

  Income taxes journal entry

Tazmania Inc. had pretax financial income of $154,000 in 2007. Prepare Tazmania's journal entry to record 2007 taxes, assuming a tax rate of 45%.

  What is the journal entry that should be made

A firm lends $10,000 for 5-years with no stated interest rate. The market rate of interest at the time would have been 5%. What is the journal entry that should be made a. at the time the money is loaned and b. at the end of the first year of the ..

  Entries of subscription revenue

Prepare the entry in November for the receipt of the subscriptions. Prepare the adjusting entry at December 31, 2007, to record subscription revenue earned in December 2007. Prepare the adjusting entry at March 31, 2008, to record subscription revenu..

  What is the year-end balance of the equity investment

During the year, Best Pictures reports net income of $350,000 and pays $90,000 of cash dividends. At the end of the year, the market value of Berlin's investment is $3.7 million. What is the year-end balance of the equity investment in Best Pictur..

  Practical view of intra-entity transaction

Regency Corp. recently acquired $500,000 of the bonds of Safire Co., one of its subsidiaries, paying more than the carrying value of the bonds. According to the most practical view of this intra-entity transaction, to whom would the loss be attrib..

  Question on exchange rate risk

Assume you own portfolio of British securities valued at $430,000. The exchange rate is currently at $1 = £0.57. A currency contract on British pounds is set at 62,500 pounds.

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