User Account

All Pages

What are annual cash flows from operations

Assignment Help Cost Accounting
Reference no: EM132548827

Answer the following questions using the information below:

Gavin Inc. is in need of a computer network for their staff. They receive a proposal as below :

Proposal Initial after-tax investment in equipment$102,000

Annual cash increase in operations:

Year 1 (before-tax) 60,000

Year 2 (before-tax) 60,000

Year 3 (before-tax) 60,000

Terminal disposal value 0

Estimated life 3 years

The company uses straight-line depreciation for all capital assets. Required rate of return= 14%; tax rate = 30%.

Question 1: What are Annual Cash Flows from Operations and Net Present Value (NPV)?

Reference no: EM132548827

Questions Cloud

Prepare a merchandise purchases budget for november and dec : Prepare a Schedule of Expected Cash Collections for November. Prepare Merchandise Purchases Budget for November and December
How might effect the value of the dollar : How might this effect the value of the dollar, the inflation rate, and you personally.
How much is the internal rate of return : Gavin Inc. What are Annual Cash Flows from Operations and Net Present Value (NPV)? How much is the Internal Rate of Return (IRR)?
What is the target mark-up per unit : If the invested capital of Schlickau Company is $9,000,000 and the target annual rate of return on investment is 50%, what is the target mark-up per unit?
What are annual cash flows from operations : What are Annual Cash Flows from Operations and Net Present Value (NPV)? The company uses straight-line depreciation for all capital assets.
Evaluate what is the manufacturing cost per unit : Schlickau Company manufactures basketball backboards. What is the manufacturing cost per unit? Direct manufacturing labor-hours5,000 hours
Record transactions in the general journal for the month : Record transactions in the general journal for the month of November. Raw materials of $72,000 were issued from the storeroom.
How can convince the manager to change mind : How can convince the manager to change mind? ABC as the total manufacturing costs of the company would remain the same if the company did adopt ABC.
How much will the shampoo be : With total fixed cost of P500,000, average variable cost of P20 what would be the markup price with a 20% mark-up? how much will the shampoo be?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Why is the expected rate of sales growth

Explain the role the external financing need plays in the future growth outlook for a firm - why is the expected rate of sales growth so critical to pro forma statements?

  Calculate the quantities and cost of used

Calculate the quantities and cost of used and unused capacity for thefour types of personnel, and the total cost of unused capacity for the year. How can Dr. Meara reduce the costs of unused capacity?

  Discuss a dramatic decision to begin using energy surcharges

a dramatic decision to begin using energy surcharges to recapture rising energy costs

  What would the journal entry be to record this transaction

Prepare the journal entries to create and close the warranty period for the contingent liability due to sales from February - What would you recommend that the company do and why and What would the journal entry be to record this transaction?

  Prepare a retained earnings statement for 2008

In 2008, Vega records an adjustment of $180,000 owing to the understatement of 2007 depreciation expense from a mathematical error. Prepare a retained earnings statement for 2008.

  Q we spent a considerable amount of time in discussing the

q we spent a considerable amount of time in discussing the payment and taxation of corporate dividends. some of this

  Identify the entities that were mentioned in the scenario

Identify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entity that you identify.

  Calculate the balance in ending work in process

Calculate the balance in ending work in process and cost of goods sold before any adjustments for under- or overallocated overhead and calculate under- or overallocated overhead.

  Kayak promises to have a minimum cash balance

Kayak Co. budgeted the following cash receipts ( excluding cash receipts from loans received) and cash disbursements.

  What was the materials price variance for august

What was the total standard cost of the materials used during August and how many yards of material are required at standard per kit and what was the materials price variance for August

  Tobi industries wishes to undertake a project that will

tobi industries wishes to undertake a project that will cost r2 500 000. the project has already been evaluated and has

  Prepare the consolidated net income for 2011

The equipment originally cost $140,000 but had a book value of only $98,000 when transferred. On that date, the equipment had a five-year remaining life.

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