What the present value of the machine costs is

Assignment Help Financial Accounting
Reference no: EM132740261

Problem 1: A machine costs $20,000 today, and has annual operating costs of $4,000 in each of the next four years. The cost of capital is 10%. The present value of the machine's costs is _____ and its equivalent annual cost is _____.

Multiple choice question.

Option 1: $25,192.61; $7,023.53
Option 2: $32,679.46; $10,309.42
Option 3: $33,102.61; $11,947.52
Option 4: $23,102.61; $8,083.53

Reference no: EM132740261

Questions Cloud

Calculate the equivalent units of conversion for the month : Softcloth Textile Pty Ltd, Using the weighted average method process costing, calculate the equivalent units of conversion for the month of April.
Journalize the August transactions for Summit Company : Aug. 9. Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company. Journalize the August transactions for (1) Summit Company
Explain produce for the coming month : Beginining inventory for October is 300 units. How many units should the firm produce for the coming month?
Describe set of steps in the od action research model : Describe the set of steps in the OD Action Research Model, Appreciative Inquiry, and Kotter's Eight Step Model.
What the present value of the machine costs is : What The present value of the machine costs is? A machine costs $20,000 today, and has annual operating costs of $4,000 in each of the next four years.
Journalize entries to record transactions of Betz Company : July 1. Purchased merchandise from Sabol Imports Co., $20,500, terms FOB destination, n/30. Journalize entries to record transactions of Betz Company
Derive psychographic profile : Take a cultural group of your choice and derive a psychographic profile, values and lifestyles (VALs), of the group.
Expected return on a portfolio : PM Corp's stock has a beta of 1.2, while GF Inc. stock has a beta of 1.7. If the risk-free rate is 2.2%, and the market risk premium is 7%, what is the expected
Provide an example of each of the financial information : When managing the performance of an organization, Define and provide an example of each of the financial information and non-financial information

Reviews

Write a Review

Financial Accounting Questions & Answers

  Perpetual vs. periodic inventory systems

Why would a manager prefer a perpetual inventory system over a periodic inventory system? Use specific examples to support your position. Search the internet for recommendations on which inventory system to use.

  Determine the proper inventory balance for sheffield company

Sheffield Company asks you to review its December 31, 2020, Determine the proper inventory balance for Sheffield Company at December 31, 2020.

  Determine the partnerships basis in the assets contributed

X, Y, and Z form XYZ, Determine x, Y, and Z's bases in their partnership interests. Determine the partnership's basis in the assets contributed.

  What are the payments worth

6 years while you are in college. At a 0.583 percent monthly discount rate, what are these payments worth to you when you first start college?

  Examine gmmcs financial statements

Examine GMMC's financial statements and then conduct a financial ratio analysis. Does the firm have adequate collateral in receivables and inventory?

  Fair value through other comprehensive income

Which of the following is not true about the "fair value through other comprehensive income" approach for accounting for investments under IFRS No. 9?

  Prepare an income statement for subsidiary in stickles

Prepare an income statement for subsidiary in stickles and then translate these amounts to U.S. dollars - prepare a statement of retained earnings for this subsidiary in stickles and then translate these amounts into U.S. dollars.

  How roa is computed as

How ROA is computed as?Which of the following items can be considered as a persistent income statement item for analysis purposes?

  Compute the net present value using the original estimates

Compute the net present value using the original estimates, but employing the 9% discount rate that Bob suggests is more appropriate.

  Income taxes paid during year

Conima Corporation, a Japanese construction firm, reported a balance in Income Taxes Payable of ¥3,736 million at the beginning of Year 7 and ¥14,310 million at the end of Year 7. Net income before income taxes for Year 7 totaled ¥73,051 million. ass..

  Find what is anne''s realized gain

The total cost was $20,000, and Anne deducted $13,000 as medical expenses. Find what is Anne's realized gain?

  Audit of an entitys stockholders equity accounts

During an audit of an entity's stockholders' equity accounts, the auditor determines whether there are restrictions on retained earnings resulting from loans, agreements, or state law. This audit procedure most likely is intended to verify management..

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