User Account

All Pages

What is the payback period for the new machine

Assignment Help Managerial Accounting
Reference no: EM132806880

Problem - Babble Brook Farm is planning to purchase a new tractor. The initial cost is $530 000. The new machine will last four years with an expected salvage value $80 000. The tractor is expected to increase the productivity of the farm. The expected increase in cash revenue each year of operating the new machine is $600 000 and expected increase cash outflows for each year is $425 000 (tax included).

Required -

1 - What is the payback period for the new machine.

2 - Calculate the new machine's ARR.

Reference no: EM132806880

Questions Cloud

Compute the market-share variance and market-size variance : Compute the market-share variance and market-size variance. Deep Cove Kayak sells sport water shoes and competition water shoes.
Describe the cultural competencies you perceive : Describe the cultural competencies you perceive were demonstrated by the students in the Landfill Harmonic project (these are summarized in the Instructor).
Managed personally or professionally : Write a in which you describe a project you have managed personally or professionally. How was the need for the project identified?
State the type of audit report that you should issue : What should Rebecca consider when making the client continuance decision for Carolina Company Ltd for the next financial year?
What is the payback period for the new machine : Babble Brook Farm is planning to purchase a new tractor. The initial cost is $530 000. What is the payback period for the new machine
How will the events affect firm ability to expand : Next decade there will be a nationwide surge in the demand for MBA's. How will these events affect your firm's ability to expand its own base of MBA's?
Power of attorney should be general power of attorney : Draft a sample power of attorney to your fictitious brother. This power of attorney should be a general power of attorney.
How much was the total gain on extinguishment of debt : How much was the (1) total gain on extinguishment of debt and (2) carrying amount of the note payable as of December 31, 2021
How the school is responding to diverse needs of students : Imagine this scenario: Over the past several years, large immigrant populations have moved into your community. Parents and other community stakeholders attend.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Calculate the accounts receivable turnover and quick ratio

HC1010 Accounting for Business Assignment - Financial Statements Elements and Financial Statement Analysis, HOLMES INSTITUTE, Australia

  What are the breakeven sales in unit

If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses are $15,000, what are the breakeven sales in units?

  Calculate the cost incurred as of the end of april

Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Videos Completed. Calculate the cost incurred as of the end of April

  Which not of positive attribute of responsibility accounting

Which not one of the positive attributes of responsibility accounting? By assigning responsibilities for each cost, better cost control should result.

  How much is the manufacturing overhead of product B

The company allocates overhead based on units produced. How much is the manufacturing overhead of product B in the cutting department?

  What is the difference in operating income

Assuming no ending inventory, what is the difference in operating income between variable and absorption costing

  Show the journal entry needed to record the debts

Show the journal entry needed to record theses debts as bad on 6 March 2000. Show the relevant journal entries to be made on 31 December 2000

  Which is not a way the initiative might be reflected

Which of the following is not a way this initiative might be reflected in the grocery store's contribution margin income statement?

  Which alternative is best for Jerry Auto Company

Monty Company has offered to sell 10,000 units of the part for $129 per unit to Jerry Auto Company. Which alternative is best for Jerry Auto Company

  Answer each of jordan questions using the data given above

Answer each of Jordan's questions using the data given above. In each case, explain how you arrived at your answer.

  Find what would be a reason for gross profit to be greater

Find What would be a reason for gross profit to be greater in 2015 than in 2014 when sales revenue is less? Could it be the increase in 2014 GOGS?

  What is the competitive strategy of vincent business

What is the competitive strategy of Vincent's business - cost leadership, differentiation, or focus? What are the critical success factors

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