What is the machines net present value

Assignment Help Financial Accounting
Reference no: EM132492625

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%

0.9259                         0.9259

2 0.8573                     1.7833

0.7938                         2.5771

0.7350                            3.3121

Question 1: Xavier Co. wants to purchase a machine for $36,100 with a four year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,100 in each of the four years. What is the machine's net present value?

Multiple Choice

Option a: $1,473.

Option b: $664.

Option c: $37,573.

Option d: $(1,473).

Option e: $(664).

Reference no: EM132492625

Questions Cloud

Why are structured interviews important : Why are structured interviews important? What might happen if you do not use a structured approach when interviewing job candidates?
What is the payback period for machine : 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for machine
Individuals using cannabis as medicine : How to form a value claim thesis With the topic of pro-medical marijuana, supports will be stories about individuals using cannabis as medicine?
What restraining forces block implementation of program : For this proposal, identify a problem area of your current organization (or one in which you have previously worked) that you believe warrants a change.
What is the machines net present value : Xavier Co. The expected year-end net cash flows are $11,100 in each of the four years. What is the machine's net present value?
Create a proposal for an onboarding program : Your task is to create a proposal for an onboarding program (also known as an orientation or organizational entry and socialization program) for new consultants
Compute the present value of a stream of cash flows : What The present value of a stream of cash flows you expect to received will always increase. If we hold all other factors the same an increase in interest rate
BUACC5931 Research and Statistical Methods for Business : BUACC5931 Research and Statistical Methods for Business Assignment Help and Solution - Federation University, Australia. What is the current method of sampling
Describing the core competency for your company : Complete an analysis describing the core competency for your company or select a fortune 500 company department or division (i.e. Amazon, Google, or Coca Cola).

Reviews

Write a Review

Financial Accounting Questions & Answers

  Desire of being a dominant player in the global market

Many firms are relying on cloud computing, also known as “the cloud,” to perform key business functions. By moving transactional processing to the cloud, firms are exposing themselves to additional attacks as well as to tighter scrutiny from regulato..

  Record accrued interest payable

On September 1, 2010, Herman Co. issued a note payable to National Bank in the amount of $1,200,000, bearing interest at 12% and payable in three equal annual principal payments of $400,000. On this date, the bank's prime rate was 11%. The first paym..

  Compute the relative size of sales revenue

Compute the relative size of Sales revenue (total) and of revenue from Service, outsourcing and rent¬als. Hint: Scale each type of revenue by Total revenue. Which type of revenue grew more in 2010?

  Problem regarding the bullock gold mining

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine site.

  The amount to be recorded as depreciation expense

Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2013, is?

  Compute the variable manufacturing overhead spending

Compute the variable manufacturing overhead spending and efficiency variances and compute the fixed manufacturing overhead budget and volume variances.

  Responsible for governing financial reporting

What organizations are responsible for governing financial reporting? What is the role of each organization? How have the roles changed in the last 20 years? How might their roles change in the next 20 years?

  Standard mileage method

Jan receives no reimbursement from her employer. Jan has an AGI for year of $50,000 and no other itemized deductions.

  What kind of managerial accounting information

What kind of managerial accounting information is used to make a business decision of manufacturing versus purchasing from an outside source?

  Based on the net present value

Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). Carefully refer to Table 12–11 to determine in what depreciation category the asset falls. Calculate the net p..

  Prepare a work sheet for the fiscal year ending december

Prepare a work sheet for the fiscal year ending December 31, 2006. List all accounts in order given. Journalize the adjusting entries. Journalize the closing entries.

  Failure to record accrued interest on notes payable

Failure to record accrued interest on notes payable in 2012; that amount was recorded when paid in 2013. (5) Failure to record amortization of patent in 2013.

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