User Account

All Pages

What is the payback period for the investment

Assignment Help Accounting Basics
Reference no: EM133163243

Question - Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine will generate after-tax savings of $250,000 per year over the next four years. What is the payback period for the investment?

a. 2.8 Years

b. 1.8 Years

c. 2 years

d. 2.5 years

Reference no: EM133163243

Questions Cloud

Prepare journal entries to record the purchase : Prepare journal entries to record the purchase of the assets and to record depreciation expense on 30 June 2018 and 2019
Develop a set of hr practices in the area of recruitment : Farfetch, founded in 2007, is a British-Portuguese online luxury retail platform that sells luxury products from over 700 boutiques and brands around the world.
Determine the adjusted ending balance of retained earnings : The retained earnings account of William Company has a balance of 10.4 million of January 1, 2021. Determine the adjusted ending balance of retained earnings
What is the amount of goodwill : This is the same level of income experienced by companies similar to LeMans line of business. What is the amount of goodwill
What is the payback period for the investment : Assume the new machine will generate after-tax savings of $250,000 per year over the next four years. What is the payback period for the investment
Cost-leadership position : Can you help me understand the following? Does AIRBNB have a cost-leadership position in this business? If so, identify which cost drivers it uses effectively t
Defined benefit pension plan : Assume that you are an employee, age 30, and you are given your choice of participating either in the Defined Benefit Pension plan (DBPP) or the Defined Contrib
Workplace environment and turnover intention of employees : RESEARCH TOPIC: The Relationship Between Compensation, Workplace Environment and Employee Relationship to Turnover Intention of Employees
Showing the company equity balances : Complete the table showing the company's equity balances before and after accounting for both issues of the shares

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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