What is the present value of the salvage value

Assignment Help Managerial Accounting
Reference no: EM133090169

Question - Grady Corp. is considering the purchase of a new piece of equipment. The equipment costs $50,800, and will have a salvage value of $5,130 after six years. Using the new piece of equipment will increase Grady's annual cash flows by $6,170. Grady has a hurdle rate of 10%.

Required -

1. What is the present value of the increase in annual cash flows?

2. What is the present value of the salvage value?

3. What is the net present value of the equipment purchase?

Reference no: EM133090169

Questions Cloud

Identify two infection hazards : Identify two infection hazards within the workplace that may need reporting
Studying the organizational chart for company : As a newly hired employee, what benefit is there to studying the organizational chart for your company? What type of insight might this practice give you to hel
What are the annual supplemental operating cash flows : If E'Fashion's marginal tax rate is 40 percent, what are the annual supplemental operating cash flows associated with the new machine
The merry-go-round-letter to my doctor : Read the case (Chapter 14 page 370): The Merry-Go-Round - Letter To My Doctor and address the following:
What is the present value of the salvage value : The equipment costs $50,800, and will have a salvage value of $5,130 after six years. What is the present value of the salvage value
What is the forecasted adr : If the management would like to sell 2,500 rooms in 2013, what is the forecasted ADR in 2013
What is the total contribution by profit center : The accounting manager has come up with the following data for the year: contribution margin of $540,000, What is the total contribution by profit center
Regarding viability of company expanding : Analyze three host countries regarding the viability of the company expanding into each one. Explain the mode of entry into each country.
What was the investor pre-tax holding period return : Suppose an investor buys 10 shares of stock priced at $55.10. What was the investor pre-tax holding period return

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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