What is the present value of the total net cash flows

Assignment Help Managerial Accounting
Reference no: EM132649891

COST ACCOUNTING

The relevant interest rate is 8%.

Required:

An upgraded point-of-sale system is being considered by a firm. The firm would be incurring $300,000 for the purchase and installation of the system. Additionally, a one-time training fee of $10,000 will be incurred by firm. The system is expected to be used over a period of 5 years. Annual maintenance fee at the end of the second, third and fourth years will be $20,000, $25,000 and $25,000 respectively.

Question 1: What is the present value of the total net cash flows relating to the acquisition and use of the point-of-sale

Question 2: What is the equivalent annual cost of the system?

Reference no: EM132649891

Questions Cloud

Calculate break even value using the mariginal income ratio : CALCULATE BREAK EVEN VALUE USING THE MARIGINAL INCOME RATIO. The forecasts for January 2021 were provided by Waltons Manufacturers
Discuss the demographics of the jail inmates : Discuss the demographics of the jail inmates. How does what you saw in the documentary compare to the information in your text? Be sure to cite specific.
Evaluate the value afforded by Lehmann : Evaluate the value afforded by Lehmann and Winer's Level of Competition Model as an instrument for engendering the accurate identification
Analyze benefits afforded to health care marketers : Analyze the benefits afforded to health care marketers that understand the importance of establishing core values that guide health care organizations
What is the present value of the total net cash flows : What is the present value of the total net cash flows relating to the acquisition and use of the point-of-sale? What is the equivalent annual cost of the system
HC1072 Economics and International Trade Tutorial Questions : HC1072 Economics and International Trade Tutorial Questions Assignment Help and Solution - Holmes Institute, Australia - Assessment Writing Service
Evaluating Policy Performance : Compare and contrast methods of evaluation and prescription in terms of time and the types of claims produced by each.
Prepare a product life cycle income statement for new gadget : Customer service costs will still be incurred for another 6 months. Prepare a product life cycle income statement for the new gadget model.
Constant growth dividend discount model in investment : Briefly discuss FIVE (5) disadvantages of the constant growth dividend discount model in investment analysis.

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