Problem regarding minimum pretax return

Reference no: EM13129129

The management of Rousseau Corporation is considering the purchase of a machine that would cost $340,000, would last for 8 years, and would have no salvage value. The machine would reduce labor and other costs by $67,000 per year. The company requires a minimum pretax return of 15% on all investment projects. The net present value of the proposed project is closest to:

Reference no: EM13129129

Questions Cloud

Create and interpret confidence interval for population mean : A sample of 15 workers reveal the following minutes: 29, 38, 38, 33, 38, 21, 45, 34, 40, 37, 42, 30, 29, 35. Develop 98% confidence interval for the population mean. Interpret your result.

Distinguish between upstream and downstream sales : Why is it important to distinguish between upstream and downstream sales in the analysis of intercompany profit eliminations?

Follow four-step process to create a confidence interval : Of the 880 respondents, 171 admitted that at least one light had been red. Follow the four-step process to construct a 95% confidence interval.

Provided data for the month of august : The company allocates any under applied or over applied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

Problem regarding minimum pretax return : The machine would reduce labor and other costs by $67,000 per year. The company requires a minimum pretax return of 15% on all investment projects. The net present value of the proposed project is closest to:

Distinguish between debt securities and equity securities : Examine the accounting for investments. Be sure to distinguish between debt securities and equity securities and provide examples. Who uses derivatives and why?

Determine the equilibrium mole fractions of all species : occurring at 800 K and 1atm. The initial mixture contains 1 mol of SO2 and 0.5 mol of O2. The reaction mixture can be considered to be an ideal gas.

S speech by a fictional character, dale gribble : read the fictitious speech by a fictional character, Dale Gribble

When compared with a debt-to-assets ratio : Revel Company has average daily sales of $5,000, 90% of which are on credit. Receivables are collected 28 days after sales, on average. What is Revel's average accounts receivable balance?

User Account

All Pages