What is the payback period of the new product line

Assignment Help Managerial Accounting
Reference no: EM133063835

Question - Blossom Company is going to invest in a new product line. Blossom estimates that the net cash flows from the new line will be $25500 per year. The initial investment required to implement the new line will be $535500. The company requires a rate of return of 8% and the new product line is expected to span a time period of 15 years. What is the payback period of the new product line?

Reference no: EM133063835

Questions Cloud

Evaluate the target companies cost position : Analysis of the Company's Cost Position Compared to competitors and other companies with which you are familiar, evaluate the target companies cost position
Integrate the four stages of modernization : What are the examples manifesting the four stages of modernization and how this examples integrate the four stages of modernization?
Approach to strategic hrm management : There is increasing pressure on HRM to become more strategic, that is to contribute to the strategic goals of the company. Strategic HRM may be approached in ei
Competitive firms with internal economies scale : New trade theory came about when economists realized that the theories of specialization and trade (i.e. the Ricardian trade model) were not being borne out in
What is the payback period of the new product line : Blossom estimates that the net cash flows from the new line will be $25500 per year. What is the payback period of the new product line
Conventional material requirements planning : In conventional Material Requirements Planning (MRP) procedures, production quantities and dates are calculated in accordance with actual customer
How do economies of scale help : New trade theory came about when economists realized that the theories of specialization and trade (i.e. the Ricardian trade model) were not being borne out in
Professional working with client : The focus of this module is maintaining a safe environment while working in Human Services.
What is the expected share price of Pinder Ltd : Pinder Ltd is currently trading at $15 per share and is planning on a dividend of $2 per share. What is the expected share price of Pinder Ltd

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Do company should be concerned with social responsibility

In 1970, Milton Friedman argued, Do you think a company should be concerned with social responsibility initiatives? Consider both the pros and cons.

  How is the NPV calculated by Year

Determining if the expansion should move forward based on the Net Present Value and straight line vs. MACRS depreciation. How is the NPV calculated by Year?

  Determine the appropriate allocation of service department

Determine the appropriate allocation of service department costs to the teaching departments, taking into account the reciprocal nature of service provision between departments.

  Find dollar amount of television sales budgeted for february

If 25,000 units were sold in December, and management forecasts 5% growth in sales each month, the dollar amount of television sales budgeted for February

  Find which of the transfer prices can be used

Delta Company, wants to use the bells in its new line of rattles, which of the following transfer prices can be used if there is excess capacity?

  .key comparative information for piaggio

1.Key comparative information for Piaggio (www.piaggio.com), which manufactures two, three and four wheel vehicles, and is Europe's leading manufacturer of motorcycles and scooters, follows.

  What would be the amount in ending work in process

Beginning Raw Materials Inventory was $21,234; And the Cost of Goods Manufactured was $30,352. What would be the amount in Ending Work in Process?

  York company engaged in the following transactions

York Company engaged in the following transactions for the year 2013.

  Summarize the events of a recent accounting scandal

summarize the events of a recent accounting scandal. identify how the illegalunethical act was detected and the

  Prepare a flexible budget performance report for july

Prepare a flexible budget performance report for July and which of the variances should be of concern to management? Explain.

  Which strategic management accounting is not concerned with

Which Strategic management accounting is not concerned with? how to ensure all indirect expenses are allocated to the correct product

  Post the preceding transactions to t-accounts

Post the preceding transactions to T-accounts. (Note: Capture the offsetting of debits and credits to other accounts such as Cash, Payables)

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