What is the machine net present value for norman company

Assignment Help Managerial Accounting
Reference no: EM133010827

The following present value factors are provided for use in this problem:

Periods
                               Present Value of $1 at 8%                        Present Value of an Annuity of $1 at 8%

1.............................................0.9259....................................................................0.9259

2.............................................0.8573.....................................................................1.7833

3............................................0.7938.....................................................................2.5771

4.............................................0.7350.....................................................................3.3121

Problem 1: Norman Company wants to purchase a machine for $40,000, but needs to earn an 8% return. The expected year-end cash flows are $12,000 in each of the first 3 years, and $16,000 in the fourth year. What is the machine's net present value (NPV) (round to the nearest whole dollar)?

Select one or more:

a. $52,000.

b. $(28,240).

c. $ (9,075).

d. $42,685.

e. $2,685.

Reference no: EM133010827

Questions Cloud

Find how much information to gather to minimize uncertainty : Include in your discussion an explanation of how to determine how much information to gather to minimize uncertainty. Finally, explain which decision should be
Examine the underlying bases of a firm strategy : Examine the underlying bases of a firm's strategy. Compare expected results with actual results. Take corrective actions to ensure that performance conforms.
What the internal rate of return or irr is : What the internal rate of return (IRR) is? A company is considering a 5-year project. It plans to invest $60,000 now and it forecasts net cash flows
Calculate the internal rate of return for the company : Calculate the internal rate of return (IRR) to determine whether the company should accept this project. Selected factors for the present value of an annuity
What is the machine net present value for norman company : The expected year-end cash flows are $12,000 in each of the first 3 years, and $16,000 in the fourth year. What is the machine's net present value (NPV)
Explain advantage of customer segment profitability analysis : Outline TWO weaknesses of the CSPA. Explain the main advantages of Customer Segment Profitability Analysis (CSPA) in comparison to Service Line Profitability
Describe the events and your experience : How the analysed subject will be useful to you in the future - a reflective journal requires you to map the progress and changes
Why did westbrook create a team to evaluate? idg proposal : Why did Westbrook create a team to evaluate? IDG's proposal? Consider each piece of? cost-benefit information that management accountant
Describe the financial structure of hca healthshare : Describe the financial structure of HCA Healthshare. Describe the financial structure of Mayo Clinic. Describe the financial structure of Medicare

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Prepare a fully documented timeline of all cash flows

Cambrian Corporation is considering a project that will require a cost outlay of $30,000 per year for 4 years. Prepare a fully documented timeline of all cash

  Compute annual rate of return on propose capital expenditure

Using the discounted cash flow technique, compute the net present value.(If the net present value is negative, use either a negative sign)

  Calculate net income treating the amount of overapplied

Calculate net income treating the amount of overapplied overhead as material and apportioning it to the appropriate inventory accounts and Cost of Goods

  Preparing and contribution format statement

Classify the costs as either product costs or period costs for the purpose of preparing the financial statements for the bank.

  Compare how company has done to the industry averages

Compare how your company has done to the industry averages. Do you notice any trends that are positive or negative? Does anything look good or bad

  Should a company invest in a new opportunity

Should a company invest in a new opportunity based on the information below - Weights of 40% debt and 60% common equity (not preferred equity)

  Describe steps that marian should take to resolve situation

Assuming Marian Nevins believes the controller has acted unethically and not apprised the CEO and CFO of the findings, describe the steps that she should take to resolve the situation.

  What will be the break-even-point in sales dollars

Cost Schedule Variable Cost Direct labor per keyboard $8.0 Direct materials $4.0. What will be the break-even-point in sales dollars for 2018

  What is the required sales in dollars for the company

Viejol Corporation, The company has a target net income of $216,000. What is the required sales in dollars for the company to meet its target?

  What is the level of implementation of revenue management

What is the level of implementation of revenue management strategies of hotels in Baguio City in terms of Pricing and Inventory Management

  Find and solve net present value of investment opportunity

Find and Solve the net present value of the investment opportunity. Aaron Heath is seeking part-time employment while he attends school.

  How many units must be sold year to earn same net income

A total of 30,000 units were sold last year. The contribution margin. How many units must be sold this year to earn the same net income as was earned last year?

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