User Account

All Pages

What is the machine net present value

Assignment Help Managerial Accounting
Reference no: EM133117815

Question - Cullumber Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inflows of $10332 for 5 years. The cost of the machine is $35532 and it can be sold at the end of its 5-year useful life for $5712. Cullumber'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?

a) $10,420

b) $13,879

c) ($88)

d) $7,182

Reference no: EM133117815

Questions Cloud

Project manager planning and developing others : Project manager Planning and Developing Others -Foundation for project transparency. Without this, you are setting yourself and your team up for project failure
What is Arlington recognized gain or loss on the exchange : Arlington originally purchased the land it exchanged for $32,500. The new land had a fair market value of $37,250. What is Arlington recognized gain or loss
Record the accrual of interest on february : Record the accrual of interest on February 28, 2022, assuming the semi-annual amortization amount for this interest period is $ 1,034
Covid-19 pandemic affected the operations : How has the COVID-19 pandemic affected the operations/performance of specific non-financial companies?
What is the machine net present value : The new machine will provide annual cash operating inflows of $10332 for 5 years. What is the machine's net present value
Determine the division segment margin : Question - Sandhill Industries production division reported a net operating loss of $521000 in 2021. Determine the division segment margin
Calculate the contribution margin per machine hour : Dalton Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Calculate the contribution margin per machine hour
Describe three emerging global technologies : Describe three emerging global technologies and explain where each one is on the Hype Cycle. Defend your explanation.
Digital camera destroy the film market : Describe how a particular company or industry was eliminated by a new technology. For example, how did the digital camera destroy the film market?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What ghi direct labour rate per hour was

Actual manufacturing overhead costs incurred amounted to $300,000. GHI employees worked total of 60,000 hours during year. GHI's direct labour rate per hour was

  Find how long will take to pay off the credit card balance

Suppose your credit card balance is $16,000. If you make a constant monthly payment of $349, how long will it take you to pay off the credit card balance?

  Explain what is meant by horizontal and vertical analyses

Explain what is meant by horizontal and vertical analyses of the balance sheet and the income statement.

  Demonstrate how the income statement budget created

Demonstrate how the income statement budget would be created for a year starting with the sales budget through the SG&A budget.

  Discuss the underlying principles in Life Cycle Costing

Discuss the underlying principles in Life Cycle Costing (LCC) technique and what are the challenges faced by companies in under-taking this technique

  Determine the ending finished goods for january

Determine the Ending Finished Goods for January and provide the Job number(s) in Finished Goods at the end of January and determine the total cost

  What efforts are designed to primarily enhance

When you create brand awareness, create a relationship between the brand and its customer's, these efforts are designed to primarily enhance

  Determine the goodwill or gain on bargain purchase

Determine the goodwill or gain on bargain purchase from the above transaction. Prepare the SFP of Ariadne after the merger

  When should selam recognize revenue

Service and requires that payment be made within 30 days of the billing date. Conceptually, when should Selam recognize revenue related to its catering service?

  Compute december sales and cost of goods sold

During December, supplies purchased totaled $1,100. A physical count showed that there were $1,850 remaining at the end of the year. Prepare the necessary adjusting entry.

  Run a complete variance analysis for cogs

Based on the information given, run a complete variance analysis for COGS by indicating variance conditions for each of the COGS variance components.

  What are the two purposes of costing systems

"Fixed overhead volume variance reconciles the two purposes of costing systems". Do you agree with this statement? Please provide explanations.

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