What is the payback period of the presentation equipment

Assignment Help Accounting Basics
Reference no: EM133114761

Question - Isomer Industrial Training Corporation is considering the purchase of new presentation equipment at a cost of $150,000. The equipment has an estimated useful life of 10 years with an expected salvage value of zero. The equipment is expected to generate net cash inflows of $35,000 per year in each of the 10 years. Isomer's discount rate is 16%. Iso uses the straight-line method of depreciation for its assets. What is the payback period of the presentation equipment?

a. 5.8 years

b. 4.3 years

c. 2.3 years

d. 3.0 years

Reference no: EM133114761

Questions Cloud

Develop a series of theme : Describe at least three learning activities you can present to a group of three- and four-year-old students centered on some aspect of spring.
Discussing the tax implications of the appraisal sale : Consequently, he wants to deduct $35,000 on his 2017 tax return. Write a letter to Mr. Huffman discussing the tax implications of the appraisal and subsequent s
BSBXTW401 Lead and facilitate a team Assignment : BSBXTW401 Lead and facilitate a team Assignment Help and Solution - identifying an e-commerce opportunity for Apparel Brands and developing a proposal
Positive reinforcement and implementation fidelity : How would you ensure the proper use of positive reinforcement and implementation fidelity across team members?
What is the payback period of the presentation equipment : Isomer's discount rate is 16%. Iso uses the straight-line method of depreciation for its assets. What is the payback period of the presentation equipment
Prepare the eliminating entries required to consolidate vie : Prepare the eliminating entries required to consolidate the VIE with Pelican on January 1, 2019, assuming the VIE and Pelican are not under common control
Response to intervention and multitiered systems of support : How do you use Response to Intervention (RTI) or Multitiered Systems of Support (MTSS) in ELL instruction?
Journalize the entries to close income summary : The beginning Capital balances for the year were P900,000 for Laguna and P1,300,000 for Cadelina. Journalize the entries to close income summary
What is the BEST estimate for market value of sandman equity : In 2005, Sandman investors purchased a shopping mall for $3.7 million. What is the BEST estimate for the market value of sandman's equity

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd