What the payback period for the new equipment is

Assignment Help Managerial Accounting
Reference no: EM132758041

Problem 1: Parker, Inc purchased new equipment for $59,100. The new equipment would save on operating costs over the next 5 years as follows: $22,000 in year 1; $21,700 in year 2; $24,000 in year 3; $12,900 in year 4; and $13,000 in year 5. The payback period for the new equipment is ______ years. Enter your answer rounded to 2 decimals

Reference no: EM132758041

Questions Cloud

What tina direct labor spending variance is : What Tina's direct labor spending variance is? Actual number of pans produced and sold 2,263. Standard hours required per pan 1.9
Determine the asset turnover for all three companies : Determine the asset turnover for all three companies. Interpret the differences in the asset turnover in terms of the operating characteristics
What is the payback period for warren corp : Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result, What is the payback period?
How leadership is effective or ineffective in communicating : Students start to think about how change may impact an organization, how leadership is effective or ineffective in communicating,
What the payback period for the new equipment is : What the payback period for the new equipment is? Parker, Inc purchased new equipment for $59,100. The new equipment would save on operating costs
Illustrate what the direct materials price variance is : Illustrate what the direct materials price variance is? The standard price of materials is $4.8 per pound and the standard quantity allowed for actual output
Temporary promotion must receive performance plan : An employee on a temporary assignment within the Service such as a detail or temporary promotion must receive a performance plan as soon as possible
Determine for each year the inventory turnover : Problem - Inventory analysis - Determine for each year (1) the inventory turnover and Round to the nearest dollar and one decimal place
At what production level would y company be indifferent : Y Company currently makes 2,600 units of a unique part for one of its finished products. Variable production costs for this part are $13.46 per unit.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How to compute the new cm ratio and the new break-even point

Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not round intermediate calculations.)

  How high can the discount rate be before would reject

A project that costs $3100 to install will provide annual cash flows of $850, How high can the discount rate be before you would reject the project?

  Prepare the adjusting entry for the deferred tax

MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax. There have been recent tax structure changes

  How much profits would increase or decrease as a result

How much profits would increase or decrease as a result of purchasing the parts from the outside supplier rather than having the company make them.

  Why would responsible for the budget setting process need

Do you think that there is a danger that forcing managers to work towards predetermined targets will stifle their skill, flair and enthusiasm?

  Find budget showing the expected current profit

The variable cost is $3 per package, and fixed costs are $60,000 per month. budget showing the expected current profit and profit after the changes in costs.

  How can you achieve greater supply chain

As a business leader, how can you achieve greater supply chain integration with suppliers and customers - Do you feel that Amazon sets an example for other companies to model regarding supply chain integration? Be sure to explain your rationale.

  Discuss your reaction to the public service announcement

Discuss your reaction to the public service announcement in relation to the marketing of junk food to children, with a focus on why or why not this PSA is appropriate.

  Terms of preparing communities for the disaster

Pick a recent disaster such as Hurricane Harvey and discuss at least two aspects that went well in terms of preparing communities for the disaster

  Do reflect cash and noncash assets as positive number

Do reflect cash, noncash assets, total liabilities, contributed capital, retained earnings and other equity as positive or negative numbers on balance sheet

  Determine what is the net present value of the machine

What is the net present value of the machine? Butler Corporation is considering the purchase of new equipment costing $87,000

  What is the price chargeable to the customer

Overheads are recovered on the basis of labour hours used at $10 per labour hour. A mark-up of 50% is added. What is the price chargeable to the customer?

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