User Account

All Pages

What is the payback period for the proposed investment

Assignment Help Accounting Basics
Reference no: EM132116372

Question - Canadian Classics manufactures parts for classic automobiles. The CFO is considering the purchase of a two-ton press, which will allow the firm to stamp auto fenders. The equipment costs $250,000. The project is expected to produce after-tax cash flows of $80,000 per year. Liquidating the equipment will net the firm $10,000 in cash at the end of five years. The firm requires a 15% rate of return on all investments. The firm's tax rate is 38%. Ignore the effects of CCA.

What is the payback period for the proposed investment?

Reference no: EM132116372

Questions Cloud

Advantages of becoming strategy focused organization : Explain the advantages of becoming a strategy focused organization? Are there any disadvantages? Please explain
What is reorder point : If the company can tolerate a probability of stockout equal to 8%, what is the reorder point?
How your organization should house its backups : Your organization must be able to easily discover data no older than one month, as an operational requirement.
Biggest mistake job seeker can make with networking : What is the biggest mistake a job seeker can make with networking?
What is the payback period for the proposed investment : The firm requires a 15% rate of return on all investments. The firm's tax rate is 38%. What is the payback period for the proposed investment
Process of physician completing laboratory order : Draw a crossfunctional flowchart for the process of a physician completing laboratory order,
Compare the topics-education and politics : Continue with the same TWO Spanish-speaking countries you used in week 4. Spain & Mexico. Compare and contrast ONE of the following topics.
What must be the price of the stock show your calculations : A put option on Macrohard stock with a strike price of $36 has a time value of $1.50, What must be the price of the stock? Show your calculations
What should copper corporation report : The machinery had been purchased on January 2, 2012, for $30,000, For 2015, what should Copper Corporation report

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