Question hungry and feed foundation is a non-profit

Assignment Help Financial Accounting

Reference no: EM13349508

Question :

Hungry and Feed Foundation is a non-profit organization that has a cost of capital of 10 %. The foundation is supposing the replacement of a piece of equipment. The old machine has a book value of $3,000 and a residual estimated life of 5 years with no salvage value at that time. The salvage value of the old machine is presently $1,500. The new equipment can cost $10,000. It has an estimated life of 5 years with no salvage value then. Annual cash operating costs are $4,000 for the old machine and $2,000 for the new machine.

a. Refer to Feed the Hungry Foundation. What is the current value of the operating cash outflows for the old machine?

b. a. Refer to Feed the Hungry Foundation. What is the current value of the operating cash outflows for the new machine?

c. a. Refer to Feed the Hungry Foundation. What is the current value of salvage value of the old machine if it is replaced now?

d. a. Refer to Feed the Hungry Foundation. Would you advise the organization to replace the machine?

Reference no: EM13349508

Questions Cloud

Question show the fund or nonfund accounts that should be : question show the fund or nonfund accounts that should be used to account for each of the subsequent1. tax revenues

Questionassume you want to deposit a certain amount of : questionassume you want to deposit a certain amount of money into a saving account and then leave it alone to draw

Question 1 a portion of the net fixed manufacturing : question 1. a portion of the net fixed manufacturing overhead cost incurred throughout a period cana. be excluded from

Question1 prove that it is impossible to extend a : question1. prove that it is impossible to extend a comparison-based implementation of the priority queue adt in which

Question hungry and feed foundation is a non-profit : question hungry and feed foundation is a non-profit organization that has a cost of capital of 10 . the foundation is

Questionwhen running snort ids why may there be no alertsif : questionwhen running snort ids why may there be no alerts?if we only went to a few web sites why are there so several

Question the john clock shop manufactures clocks on a : question the john clock shop manufactures clocks on a highly automated assembly line. its costing system use two cost

Questiontranslate the following c program to mips : questiontranslate the following c program to mips assembly.int fibint nif n 0 return 0 else if n 1 return 1 else

Question currently moodys investors services issued a : question currently moodys investors services issued a special comment explain best practices for the role of audit

User Account

All Pages