What is the approximate net present value for malone corp

Assignment Help Managerial Accounting
Reference no: EM132758021

Malone Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $20,080. The equipment will have an initial cost of $186,260 and have a 5-year life. The salvage value of the equipment is estimated to be $21,360.

Factors to use for n = 5, I = 8% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS)

Future Value of an Annuity of $1 5.8666

Future Value of $1 1.4693

Present Value of an Annuity of $1 3.9927

Present Value of $1 0.6806

Problem 1: If the hurdle rate is 8%, what is the approximate net present value?

Reference no: EM132758021

Questions Cloud

What is the implicit cost of trade credit under given terms : Book Depot INC Sells on terms of 1/15, net 55. What is the implicit cost of trade credit under these terms? Use 365 day year. Round the answer to two decimal.
Compute cash flow for 5 years : A company is considering an investment proposal to install new milling machine. The project will cost Rs.50,000. The facility has a life expectancy
What the present value of the project future cash flows is : Garfield Inc is considering a new project that requires, if the project's profitability index is 1.4, the present value of the project's future cash flows is
What is the total interest earned for the ten years : What is the total interest earned for the 10 years? You deposited $10,000 in a savings account. The account will earn 8 percent annual compound interest
What is the approximate net present value for malone corp : Malone Corp. is considering the purchase of a new piece of equipment. If the hurdle rate is 8%, what is the approximate net present value?
Calculate the amount of quarterly repayment : Joe borrowed $9 million to purchase an apartment in Melbourne. The loan requires quarterly repayments over 20 years. The interest rate of the borrowing was.
Prepare a vertical analysis of the income statement : Income statement information for Einsworth Corporation follows: Prepare a vertical analysis of the income statement for Einsworth Corporation
Competitive with the current market conditions : Organizations should constantly review its compensation package to ensure it is competitive with the current market conditions.
Find what profit associated with copper for landmark coal : Gold sells for $325 per ounce and copper. Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Copper?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd