User Account

All Pages

What are the operating cash flows in each year

Assignment Help Accounting Basics
Reference no: EM133167275

Question - Johnny's Lunches is considering purchasing a new, energy-ef?cient grill. The grill will cost $47,000 and will be depreciated straight- line over 3 years- It will be sold for scrap metal after 5 years for $11,750. The grill will have no effect on revenues but will save Johnny's $23,500 in energy expenses. The tax rate is 30%.

Required -

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

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

c. Assuming the discount rate is 11%, calculate the net present value {NPV} of the cash flow stream. Should the grill be purchased?

Reference no: EM133167275

Questions Cloud

Compute the corrected cash balance on june : A creditor's check for 7,500 was incorrectly recorded in the depositor's book as 75,000. Compute the corrected cash balance on June
Explain what working capital and working capital ratio are : Explain what working capital and working capital ratio are, what is their significance. Include comparative examples based on hypothetical financial statements
What will be the per cent increase in the profit : The fixed cost of Pazzo is $10,767 per year, and the contribution margin ratio is 38%. If next year sales increase by 26%, what will be the per cent increase
Determine the level of sales that would generate net income : Skyline Corp. is subject to tax at a rate of 35%. Determine the level of sales that would generate net income after tax of $325,000
What are the operating cash flows in each year : The grill will have no effect on revenues but will save Johnny's $23,500 in energy expenses. The tax rate is 30%. What are the operating cash flows in each year
What was the issue price on january of this year : On January 1 of this year, Nowell Company issued bonds with a face value of $250,000. What was the issue price on January 1 of this year
Explain cross-functional team : You are a group of managers in charge of food services for a large state university in the Midwest. Recently, a survey of students, faculty, and staff was condu
What is ideal role in a team meeting : 1. Who pioneered the forming, storming, norming, and performing model?
What amount would be reported in the statement : Ludwig reported rent expense of $20,500 on the 2021 income statement. What amount would be reported in the statement of cash flows

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the present value of the deposits on first march

Alicia deposited $20,000 each 1 March from 1 March 2006 to 1 March 2015 inclusive. Calculate the present value of the deposits on 1 March 2006.

  Which journal entry to record factory depreciation includes

Which journal entry to record factory depreciation includes? debit to accumulated depreciation, credit to depreciation expense.

  Determine the inn break-even point in number

The inn has 50 rooms that it rents at $120 a night. Determine the inn's break-even point in number of rented rooms per month

  Compute the cost that would be assigned

The equivalent cost per unit are materials, $2.65 and conversion $5.35. Compute the cost that would be assigned to the ENDING WORK IN PROCESS INVENTORY

  What is an intangible asset should all intangible assets

what is an intangible asset? should all intangible assets be subject to amortization? explain why or why not. why is

  Calculate the amount of working capital

Question - If a retail store has a current ratio of 2.5 and current assets of $195,000, calculate the amount of working capital

  Why have advertising networks become controversial

Why have advertising networks become controversial? What, if anything, can be done to overcome any resistance to this technique?

  What type of response would you expect

What type of response would you expect from this implementation - The country does not allow for differential accounting treatment depending on size of enterprise

  Prepare journal entries to record these transactions

Atalla Co. completed the following transactions in 2013, the first year of operation:

  Which should be classified as financial instruments

Which should be classified as financial instruments? Which of the following accounting concepts best justifies the use of accruals and deferrals?

  How many units would have to be sold to breakeven

The investment is expected to increase fixed costs by $15,000. Before the new investment is made, how many units would have to be sold to breakeven

  What would be the incremental income

The selling price to Yumminess would be $12 and $14.50 per tin, What would be the incremental income/loss per tin for manufacturing Extra Attack Brownies

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