What is the NPV for a machine

Assignment Help Financial Accounting
Reference no: EM132853333

Questions -

A) What is the NPV for a machine that can be purchased for $20,000, has an annual maintenance cost of $4,000, and will last for five years? The opportunity cost of capital is 12 percent?

B) Instead of buying the machine, you may lease it (i.e., just make annual payments for the next five years). What is the maximum you would be willing to lease the machine for? Assume the same discount rate.

Reference no: EM132853333

Questions Cloud

What are Mable monthly payments : Mable is planning to buy a house worth $500,000, has $150,000 in savings for a down-payment. What are Mable monthly payments
What would a type i error mean in terms of problem : 1. We want to show that less than 40% of students do aerobics. What would a Type I error mean in terms of this problem?
What is the probability that at least one of two students : What is the probability that at least one of the two students will be in the class on a given day?
Compare the net present value of buying : Develop a simulation model to compare the net present value of buying or leasing the car for 24 months. To compare the two options a number of assumptions
What is the NPV for a machine : What is the NPV for a machine that can be purchased for $20,000, has an annual maintenance cost of $4,000, and will last for five years
Explain continuity correction for approximating : Explain Continuity Correction for approximating discrete distribution to continuous please.
What is your portfolio return : The monthly returns for Company G, Company S, and Company N were 8.85 percent, -1.66 percent, and -.07 percent. What is your portfolio return
List two genetic disorders resulting from autosomal dominant : List two genetic disorders resulting from autosomal dominant disorders. Are either of these disorders more prevalent in males versus females?
Describe the effect of extremely low birth weight babies : Identify one support service within your community to assist with preterm infants and their families and explain how the service adequately addresses

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find what are the variables used for calculating share price

Find What are the variables used for calculating a share price using the perpetuity formula? For each variable indicate whether the share price rises

  How will these errors affect inventory at year-end

This merchandise was omitted from the year-end physical count. How will these errors affect inventory at year-end and cost of goods sold for the year?

  Who are the stakeholders affected by their proposals

Bartlet Financial Services Company holds a large portfolio of debt and stock securities as an investment. The total fair value of the portfolio at December 31, 2012, is greater than total cost. Some securities have increased in value and others have ..

  Prepare the cost reconciliation report for process costing

Prepare the cost reconciliation report for this process costing, but you are not sure which method is the most suitable method to be implemented

  What amount should be reported as capital

financial statements for the two months ended March 31, 2011, prepared under the cash basis method of accounting, what amount should be reported as capital

  What is the yield to maturity of orange computers bond

Bonds of Orange Computers, What is the yield to maturity of Orange Computers bond? What is the price of Peach Computers bond?

  The gross profit does not change

Which of the following correctly describes the following journal entry? The gross profit does not change.

  What is amr corporation pension expense

AMR Corporation (parent company of American Airlines) reported the following (in millions).

  Deduction for charitable contributions in the current year

Spencer, who itemizes deductions, had adjusted gross income of $60,000 for the current year. The following additional information is available for the year: What is the maximum amount Spencer can claim as a deduction for charitable contributions in t..

  What is gold company stock worth to you

If the company is growing at a rate of 2.85 percent per year, and your required rate of return is 11.36 percent, what is Gold's company stock worth to you

  Calculate the franking credits generated for the fund

Calculate the franking credits generated for the fund as well as the post-tax yield of the holding for BIT. The characteristics of a growth company

  Methods for depreciating plant assets

Compare and contrast the three (3) methods for depreciating plant assets (straight line method, Diminishing Balance Method and Double Declining Method). Recommend the method that maximizes profits for both a shorter period of time and a longer period..

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