What is the internal rate of return on the investment

Assignment Help Financial Accounting
Reference no: EM132796687

A machine that costs $18,000 is expected to operate for 10 years. The estimated salvage value at the end of 10 years is $0. The machine is expected to save the company $1,200 per year before taxes and depreciation. The company depreciates the assets on a straight line basis and has a marginal tax rate of 40%.

Problem a. What is the internal rate of return on this investment

Reference no: EM132796687

Questions Cloud

Compute the value of good items transferred out : Compute the equivalent unit costs for direct material and conversion. Compute the equivalent units for direct material and conversion
Compute the issue price on july : Compute the issue (sale) price on July 1, 2017, if the yield is 7 percent. Thompson Corporation is planning to issue $110,000, five-year, 6 percent bonds.
Describe five things you learned from attending the webinar : Describe five things you learned from attending the webinar. Describe how the information you learned will help you post-graduation.
What you would do to increase reporting of sexual abuse : Many people refuse to report sexual abuse for many personal reasons. Sexual abuse is a serious crime and can lead to even death. Explain what you would do to.
What is the internal rate of return on the investment : What is the internal rate of return on this investment. The machine is expected to save the company $1,200 per year before taxes and depreciation.
Explain the various forms of social engineering tactics : Explain the various forms of social engineering tactics that hackers employ and provide an example of each. Describe the five social norms of hacker subculture.
How the government and central bank could alleviate : How the government and central bank could alleviate the current recession with fiscal and monetary policy. Are there any potential problems with such policies?
Describe both vocational and educational programs : Select and describe both vocational and educational programs which are designed to rehabilitate inmates. Do you think these are effective? Why, or why not?
Calculate the annual effective time weighted return : Calculate the annual effective time weighted return earned by Aakish. (Round your answer to the nearest 4 decimal places.)

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the balance in paid-in capital form sale of treasury

Golden Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June 19 of the current year, Golden Gardens Inc. reacquired 24,000 shares of its common stock at $64 per share.

  Ignore income tax considerations

Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manufactured by Lollie Corp. The machine can be used for 8 years and then sold for $23,000 at the end of its useful life. find ..

  Find how much will be in an account at the end of give years

Determine How much will be in an account at the end of the give years if amount deposited today is 16,666 and interest is 8% per year, compounded semi-annually?

  Prepare the journal entry to record the trade

Prepare the journal entry to record the trade-in assuming a trade-in allowance of $1,200 with the balance paid in cash.

  What was the profit for the year ended june

What was the profit for the year ended 30 June 2015? During the year ended 30 June 2015, Goh brought his own motor car into the business at the value

  What is the price of the bond that is being offered to you

Suppose you are reviewing a bond that has a 8.5% annual coupon and a face value of $1,000. What is the price of the bond that is being offered to you

  How much per year will you have to save

You think you can get a 7% annual return on your money. How much per year will you have to save to get to $1,000,000

  Calculate the amount of the firm after tax cash flow

Moby Dick Corporation has sales of $4,146,980; income tax of 332,966. Calculate the amount of the firm's after tax cash flow from operations?

  What is the fair value of the liability to be recorded

?118 on December 31, 2008, ?112 on December 31, 2009 and ?124 on December 31, 2010. ABC Company should record 2010 compensation expense at

  What should amelia report as total contributed capital

Subscribed shares were paid for on January 2, 2017. What should Amelia report as total contributed capital on its December 31, 2016, balance sheet?

  What would the equity section of balance sheet

In the second year, it had income of $15900 and a dividend of $6900 was paid. what would the equity section of its balance sheet shown at year year end?

  What the plant should be carried in malaluan statement

The recoverable amount at that date is P315,000, the plant should be carried in Malaluan's statement of financial position at December 31, 2022 at?

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