What is the present value of the savings

Assignment Help Accounting Basics
Reference no: EM132731090

Question - You are thinking of building a new machine that will save you $1,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 4% per year forever. What is the present value of the savings if the interest rate is 3% per year?

Reference no: EM132731090

Questions Cloud

What should be the nature of the lease arrangements : What should be the nature of its lease arrangements with lessees if the company wishes to account for its lease transactions as finance leases?
What are basic questions to ask about patterns of disease : What are "negative externalities"? What are the basic questions to ask about patterns of disease at any point in time and space?
What is relevance of revenue recognition criteria for lessor : What is the relevance of revenue recognition criteria for lessor accounting for leases? Both operating leases and finance (sales-type) leases.
Implement improvements to a management system : When would it be appropriate to develop and implement improvements to a management system?
What is the present value of the savings : The machine will then begin to wear out so that the savings decline at a rate of 4% per year forever. What is the present value of the savings
What technology did they implement : What technology did they implement? Why did they choose that technology? What business factors were evaluated prior to implementation?
Find which one is the correct description : Which one is the correct description? Initial direct costs are incremental costs of a lease that would not have been incurred had the lease not been executed.
What are the major advantages to the lessor : What are the major advantages to the lessor for becoming involved in a leasing arrangement? It often provides profitable interest margins.
Find the Mastrolia overhead volume variance : Cost of Goods Sold account for $4,200 to close out any over- or underapplied overhead at the end of the current period. Find Mastrolia overhead volume variance

Reviews

Write a Review

Accounting Basics Questions & Answers

  Set up t accounts for merchandise inventory

Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustments for Merchandise Inventory

  What is the amount of interest expense related to this loan

Larry the Locksmith needed some long-term financing and arranged for a $200,000, What is the amount of interest expense related to this loan

  Explain what will be your main source of operating revenue

Describe the company you are planning to start. Is it a service or a manufacturing company? Explain what will be your main source of operating revenue?

  Prepare a complete statement of cash flows

Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report operating activities under the indirect method.

  Prepare the revised equity section of its balance sheet

Prepare the revised equity section of its balance sheet after October 11 treasury stock purchase. (Amount to be deducted should be indicated with a minus sign.)

  A different purpose from tax returns

Financial statements have a different purpose from tax returns, and sometimes information on each is recorded based on its benefit to the purpose of the specific form. While tax returns are meant to encourage a business to report all income, subtr..

  Segregation to promote internal control

The three types of functions that normally should be segregated to promote internal control are:

  How much of the general business credit generated

After utilizing the carry forwards and the current year credits, how much of the general business credit generated in 2015 is available for future years

  Calculate the net income and sales and total asset

Assume that the average margin of maintenance service firms is 2.7%, Calculate the net income, sales, and total asset turnover that Manyops, Inc.

  Unit contribution margin

Fancy has a unit contribution margin of $120 and takes three machine hours to make. There are 2,400 machine hours available to manufacture a product. What should Dye do

  What is the current ratio for the hotel

Current liabilities are $1,694,000 and total liabilities are $2,655,000. What is the current ratio for the hotel

  Assume that the 2014 errors were not corrected and no

delver inc. is a calendar-year coporation. its financial statements for the years ended 123114 and 123115 contained the

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