User Account

All Pages

Solve the net present value of cash flow stream

Assignment Help Managerial Accounting
Reference no: EM132517317

Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $32,000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $8,000. The grill will have no effect on revenues but will save Johnny's $16,000 in energy expenses. The tax rate is 30%.

Question a. What are the operating cash flows in each year?

Question b. What are the total cash flows in each year?

Question c. Assuming the discount rate is 12%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchase.

Reference no: EM132517317

Questions Cloud

Determine equivalent annual saving from the purchase : What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate)
How to apply the learning objectives : Develop and present a paper that demonstrates you have learned and know how to apply the learning objectives in this course;
Determine net purchases and cost of goods purchased : Purchase Returns and Allowances $13,500; Purchase Discounts $9,400; and Freight-In $18,700. Determine net purchases and cost of goods purchased
Control the spread of covid-19 : In order to control the spread of COVID-19, many governments have ordered their citizens to stay at home and required certain businesses
Solve the net present value of cash flow stream : Assuming the discount rate is 12%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchase.
What are the costs and benefits of the cafeterias system : How can the manager of the cafeteria evaluate the effectiveness of the controls? What are the costs and benefits of the cafeteria's system
About assistive input devices : You are the new manager for family-owned coffee shop. You recently hired part-time employee, who is visually impaired, to assist with record-keeping activities
Prepare the company income statement reports : Prepare the company's 2019 income statement that reports separate categories for selling expenses and general and administrative expenses.
Prepare budgetary comparison schedule : The town council of Riverside estimated revenues for 2017 to be $750,000 from property taxes. Prepare budgetary comparison schedule for the General Fund

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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