What is the machine net present value

Assignment Help Managerial Accounting
Reference no: EM133066818

Question - Crane Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inflows of $10086 for 5 years. The cost of the machine is $34686 and it can be sold at the end of its 5-year useful life for $5576. Crane's required rate of return is 10%.

Type of cash flow

Periods

Interest rate

Factor

PV of $1

5

10%

0.6209

FV of $1

5

10%

1.6105

PV ordinary annuity

5

10%

3.7908

FV ordinary annuity

5

10%

6.1051

PV annuity due

5

10%

4.1699

Required - What is the machine's net present value?

Reference no: EM133066818

Questions Cloud

Discussion about future of collaboration : The textbook provides an interesting discussion about future of collaboration. discuss some of advantages and disadvantages to vision of collaboration in 2031.
Compute the required level of production for each quarter : The entity was able to sell 120000 units of Product A at an average price of P400 per unit. Compute the required level of production for each quarter
Having developed definition of diversity in last module : Having developed a definition of diversity in the last module, this week we're turning to how diversity applies to you personally.
Mitigating cybersecurity threats : Are cybersecurity threats similar from system to system? Where can you locate best practices for preventing or mitigating cybersecurity threats?
What is the machine net present value : The cost of the machine is $34686 and it can be sold at the end of its 5-year useful life for $5576. What is the machine net present value
Identify the purpose of job analysis : Conducting Thorough Job Analyses and Drafting Lawful Job Descriptions - identify the purpose of job analysis (why it is done) and the steps an employer uses
Impact of covid-19 on the insurance industry in malaysia : 1. Impact of COVID-19 on the insurance industry in Malaysia? 2. What are the Four (4) challenges by insurers in Malaysia?
Sustainable development goals fit the meaning of development : 1. To what extent do the Sustainable Development Goals fit the meaning of development? Describe the SDGs as an approach, and identify the types of information t
Why do we need land use planning : The demand for motorcycle travel by UAH students has a vertical intercept of $1 per km and a horizontal intercept of 200 km per week.

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