User Account

All Pages

What is the internal rate of return promised

Assignment Help Accounting Basics
Reference no: EM131771507

Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donut - making machine. The new machine would permit the company to reduce the amount of part- time help needed, at a cost savings of $3, 800 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1,000 dozen more donuts each year. The company realizes a contribution margin of $1.20 per dozen donuts sold. The new machine would have a 6 year useful life.

What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?

What is the internal rate of return promised by the new machine to the nearest whole percent?

Assume the machine will have a $9,125 salvage value at the end of six years in addition to data already given. What is the internal rate of return to the nearest whole percent

Reference no: EM131771507

Questions Cloud

Discuss the company estimates that annual revenues : The company estimates that annual revenues and expenses associated with the games
Improve validity of the results after mailed the survey : What could Bristol-Myers have done to improve the validity of the results after it had mailed the 10,000 surveys and received 1983 back?
Educational requirements and professional organizations : Educational Requirements and Professional Organizations for Fraud Examinations and Financial Forensics
List the clients cognitive and behavioral symptoms : Define the client's presenting problem(s) and provide a diagnostic impression.List the client's cognitive and behavioral symptoms.
What is the internal rate of return promised : What is the internal rate of return promised by the new machine to the nearest whole percent
Compute margin of error reported by newsweek : Verify that the margin of error reported by Newsweek is consistent with the rule given in this chapter for finding the approximate margin of error.
Difference between the total, undisclosed cash inflows : What is the difference between the total, undisclosed cash inflows and cash outflows over the entire life of the machine
List at least two ways that this influence can take place : List at least two ways that this influence can take place. In your opinion, would one way be preferable over the other?
Identify and explain the deficiencies in the statement : Identify and explain the deficiencies in the statement prepared by the company's accountant

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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