User Account

All Pages

What was the cost of the machine for nec company

Assignment Help Financial Accounting
Reference no: EM133006916

NEC Company purchased a machine that will be depreciated on the straight line basis over an estimated useful life of seven years and no salvage value. The machine is expected to generate cash flow from operations, net of income taxes, of P80,000 in each of the seven years. The company's expected rate of return is 12%.

Information on present value factors is as follows:

Present Value of P1 at 12% for seven periods 0.452

Present value of an ordinary annuity of P1 at

12% for seven periods 4.564

Problem 1: Assuming a positive net present value of P12,720, what was the cost of the machine?

A. P377,840
B. P253,120
C. P240,400
D. P352,400

Reference no: EM133006916

Questions Cloud

What is year four accumulated depreciation : The useful life of the computer system is estimated to be 7 years and the computer residual value is $100,000.00. What is year four accumulated depreciation
What is the after-tax payback reciprocal for candy capital : What is the after-tax payback reciprocal for Candy's capital budgeting proposal? The initial investment would be P30,000. It be depreciated on a straight-line
What is after-tax rate of return on candy capital budgeting : What is the after-tax rate of return on Candy's capital budgeting proposal? The desired rate of return is 15%. All cash flows occur at year end.
What the accounting rate of return on initial investment is : What the accounting (book value) rate of return on the initial investment is expected to be? The new machine is expected to produce cash flow from operations.
What was the cost of the machine for nec company : Assuming a positive net present value of P12,720, what was the cost of the machine? Present Value of P1 at 12% for seven periods 0.452.
How much did the project cost : Jolly Company invested in an eight-year. Assuming that Jolly based its investment decision on an internal rate of return of 12%, how much did the project cost?
What is the payback period for sos inc : What is the payback period? SOS, Inc. is considering the purchase of a P40,000 machine which will be depreciated on a straight line basis over an eight-year.
Which statement is correct about effective interest method : Which statement is correct about the effective interest method of amortization? Amortization of a premium decreases from period to period
Attract and retain the right employees : In your opinion, what are some ways to attract and retain the right employees?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd