What is the payback period for the machine

Assignment Help Financial Management
Reference no: EM131023340

A machine is purchased for $100,000. It has savings of $30,000 the first year, $20,000 the second year, and $15,000 during years three through six. In year six it is scrapped. What is the payback period for the machine?

Reference no: EM131023340

Questions Cloud

Which of the following answers indicates : Which of the following answers indicates the effect of the February 12, 2014 entry on the financial statements of Lucky Corporation?
Federal minimum wage law : Discuss the effect of each of the following on the unemployment rate.
Write down the lagrange interpolating polynomial : In general, it is hard to say anything useful about m(x) using the error term on an nth degree interpolating polynomial. However, if we are free to select the points xk freely we can select an optimal (Chebyshev) placement of the points, xk= cos((..
Payment of government unemployment insurance : What effect does the payment of government unemployment insurance have on the unemployment rate? On the severity of recessions?
What is the payback period for the machine : A machine is purchased for $100,000. It has savings of $30,000 the first year, $20,000 the second year, and $15,000 during years three through six. In year six it is scrapped. What is the payback period for the machine?
The following is a partially completed departmental expense : The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments.
Unsuccessfully for president of france : When Ségolène Royal was running unsuccessfully for president of France, she proposed that workers who lost their jobs would receive unemployment payments equal to 90 percent of their previous wages during their first year of unemployment.
Do you think employers should invest in staff development : Do you think employers should invest in staff development? Why or why not? In what ways can decisions about staff development affect a public health organization's staffing plan?
Unemployment rates in canada : Why has the unemployment rate in the United States typically been lower than the unemployment rates in Canada and the countries in Western Europe?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the factorys present value

A factory forecasts to produce the following cash flows: If the cost of capital is 6%, what is the factory's present value?

  Determine the after tax cost

Determine their after-tax cost assuming that: a. They won their case, and the IRS failed to demonstrate that its position was substantially justified. b. They won their case, but the IRS convinced the court that its position was substantially justifi..

  Debt and preferred stock and common stock and market

You are given the following information for Lightning Power Co. Assume the company’s tax rate is 40 percent. Debt: 10,000 7.1 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 107 percent of par; the bonds make sem..

  Assets must grow at the same rate as projected sales

Broussard Skateboard's sales are expected to increase by 25% from $7.6 million in 2015 to $9.50 million in 2016. Its assets totaled $4 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

  What is the current value of the annuity

A 6-year annuity of twelve $10,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity five years from now? If the ..

  What is the firms dividend

Firm X has a tax rate of 25%. The price of its new preferred stock is $70 and its flotation cost is $4.00. The cost of new preferred stock is 12%. What is the firm's dividend?

  What is the payback period of this investment

You are considering making a movie. The movie is expected to cost $100 million upfront and takes a year to make. After that, it is expected to make $80 million in the first year it is released and $6 million for the following 20 years. Your cost of c..

  What is the best estimate of these bonds remaining life

Lloyd Corporation's 14% coupon rate, semi annual payment, $1,000 par value bonds, which mature in 30 years, are callable 5 years from today at $1,050. They sell at a price of $1,353.54, and the yield curve is flat. Assume that interest rates are expe..

  What rate would you actually be paying here

You are looking at a one-year loan of $15,500. The interest rate is quoted as 8.9 percent plus four points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. Wh..

  Pro forma income statement for organization

Make a three year Pro Forma income statement for your organization (or product/service) and include information on your financial break-even point?

  What is the amount of the annual interest tax shield

Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9%. The interest is paid semi-annually. What is the amount of the annual interest tax shield if the tas rate is 34$? a,58,500 b 60,100 c. 60.750 d. 6..

  Comparing two investment options

You are comparing two investment options that each pay 6 percent interest, compounded annually. Both options will provide you with $12,000 of income. Option A pays $2,000 the first year followed by two annual payments of $5,000 each. Option B pays th..

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