What is the internal rate of return for blue corporation

Assignment Help Cost Accounting
Reference no: EM132722335

Problem 1: Blue Corporation recently purchased a new machine for $339,013.20 with a ten-year life. The old equipment has a remaining life of ten years and no disposal value at the time of replacement. Net cash flows will be $60,000 per year. What is the internal rate of return?

A. 12%
B. 16%
C. 20%
D. 24%

Reference no: EM132722335

Questions Cloud

Create a statement of shareholders equity in proper format : Sals Ltd. reported the balances, Make a statement of shareholders' equity in proper format for Sals Ltd. for the year ended December 31, 2019.
Compute the amount of the cash paid on August : On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. Compute the amount of the cash paid on August 26
Construct a 2 period binomial lattice : A stock is priced at $100. It pays a continuous dividend of 2% per year. The riskless rate is 3% per year continuously compounded.
Explain how each situation could indicate a fraud risk : Required - Explain how each situation could indicate a fraud risk and how the auditor could confirm or dispel it
What is the internal rate of return for blue corporation : Blue Corporation recently purchased a new machine for $339,013.20 with a ten-year. Net cash flows will be $60,000 per year. What is the internal rate of return?
How much conversion cost was assigned to the ending work : How much conversion cost was assigned to the ending work in process inventory in the Production Department for November
How many miles will be travelled by at least eighty percent : How many miles will be travelled by at least eighty percent of the trucks? What proportion of trucks can be expected to travel between 34 and 50 thousand
Calculate the amount of annual loan repayment : Calculate the amount of annual loan repayment. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
How much would be monthly payment : How much would be your monthly payment? (rounded to the nearest dollar)?

Reviews

Write a Review

Cost Accounting Questions & Answers

  What should be the decision criterion when using npv method

What should be the decision criterion when using the NPV method to evaluate capital investments? Does the IRR method use the same criterion?

  Evaluate the gain on the sale but difficulty figuring out

evaluate the gain on the sale but difficulty figuring out the nature of the gain. can somebody help me out?in 2012 paul

  Prepare a balance sheet for years 2012

Determine the monthly cash in-flows for January thru June 2016 - Prepare an Income Statement IS for years 2012 and Develop a depreciation table for the asset

  How do determine adjusted cost of goods sold for the period

Determine the adjusted cost of goods sold for the period. Total labor wages of $151,100 were incurred and paid. Of this amount, $133,500 was for direct labor

  What the equivalent units for march conversion costs were

Materials are added at the beginning of the process. Using the FIFO method, the equivalent units for March conversion costs were?

  How much shall be reported as total other comprehensive

In a single-statement, statement of comprehensive income, how much shall be reported as total other comprehensive income after tax?

  Audio sells headphones-would like to earn after-tax profits

ABC Audio sells headphones and would like to earn after-tax profits of $708 every week. Each set of headphones incurs variable costs of $9 and sells for $18. Rent and other fixed costs are $285 per week; the income tax rate is 20%. How many headphone..

  Prepare the necessary closing entries

Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts - Complete the worksheet

  Calculate predetermined overhead rates per direct labor-hour

Direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead.

  What would be the depreciation expense

Determine the book value of the asset at the end of the THIRD year if the straight-line depreciation method is used and determine the depreciation expense for the SECONDyear assuming double-declining balance depreciation method is used.

  What is the difference in profit if lido decides to process

Lido Products produces two products (A and B)What is the difference in profit if Lido decides to process further Product A, instead of selling it at split-off?

  What topics are included in the most recent meetings

Professional Organizations: visit the web site www.imanet.org and report on the activities of the nearest local chapter. What topics are included in their most recent meetings and presentations. Do they have a job posting section on their web s..

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