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.

User Account

All Pages