User Account

All Pages

What is the equivalent annual saving from the purchase

Assignment Help Financial Accounting
Reference no: EM132859114

Question 1: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $90,000 and sell its old low-pressure glueball, which is fully depreciated, for $16,000. The new equipment has a 10-year useful life and will save $20,000 a year in expenses. The opportunity cost of capital is 8%, and the firm's tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132859114

Questions Cloud

Record depreciation up to date of sale : On 07/01/21, the Machine was sold for $600,000. Record Depreciation up to date of sale and the Journal Entry for the disposition
List some alternate kpis : List some alternate KPIs (Key Performance Indicator) to achieve set listing targets to meet the target.
What are the possible reasons for woody government : What are the possible reasons for Woody's government to place restrictions on the use of Sweety language ? The argument of Woody's government
Explain the concept of contribution and limiting factors : Explain the concept of contribution and limiting factors and how it can be effectively used in decision making
What is the equivalent annual saving from the purchase : The firm's tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately.
Seven features of perfectly competitive free markets : Discuss the seven features of perfectly competitive free markets
Explain negotiation outcome : Individual differences have limited influence on any negotiation outcome as negotiation practices/skills can be learned.
Determine ending inventory cost by average cost method : Determine ending inventory cost by average cost method. In your calculations round per unit to the nearest cent. Round your answer to the nearest whole dollar
How much must newdex after-tax income increase : How much must Newdex's after-tax income increase by to prevent dilution of earnings per share? (Round "EPS" to 1 decimal place)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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