What ysabelle should retain or replace an old asset

Assignment Help Financial Accounting
Reference no: EM132902356

Question 1: Ysabelle Industries Inc has an opportunity to acquire a new equipment to replace one of its existing equipment. The new equipment would cost P900,000 and has a Five-year useful life, with zero terminal disposal price. Variable operating cost would be P1 million per year. The present equipment has a book value of P500,000 but would be zero after five years. Variable operating costs would be P1,250,000 per year. Considering the five years in total, but ignoring the time value of money and income taxes. Ysabelle should retain or replace an old asset?

Reference no: EM132902356

Questions Cloud

What the total separate variable costs of further processing : To maximize Julius' manufacturing contribution margin, the total separate variable costs of further processing that should be incurred each week are
What are relevant in the decision to dispose or sell pooz : What are relevant in the decision to dispose or sell "pooz" as detergent? Joint costs to manufacture products is P1.5 billion of which P250,000 can be allocate
Constitutional liberty that has benefitted-affected : A brief explanation of the Constitution and purpose. A constitutional liberty that has benefitted/affected you as a student or a citizen in the United States.
What ad decision to replace cafeteria with vending machine : What Ad decision to replace the cafeteria with vending machines will result in a monthly increase (decrease) in operating profit of?
What ysabelle should retain or replace an old asset : Considering the five years in total, but ignoring the time value of money and income taxes. Ysabelle should retain or replace an old asset?
What are disclosure obligations on providers of financial : According to ASIC's disclosure guide RG 168, what are the disclosure obligations on providers of financial products to retail clients?
Explain briefly the process to strengthen sourcing security : 1. Explain briefly the six basic steps for achieving the alignment between the strategic choices, critical success factors, processes, and people, and providing
Agency law and ethics of hiring diverse workforce : Analyze at least two laws or two court decisions that have implications for the agency's personnel management.
Compare swot matrix and bcg matrix : Compare SWOT Matrix and BCG Matrix in generating strategies. What is the difference between these two strategic tools?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find what is the market value of the bond

A $1,000 par value 15-year bond pays 9%, If similar bonds are currently yielding 10% annually, what is the market value of the bond?

  Bonds pay interest annually

On December 31, IOU Corporation issued $100,000 of 10-year bonds at 98. The bonds pay interest annually on December 31. These bonds sold at 98 because____?

  What do think man actions to pay off debt quickly

What do you think of this man's actions to pay off debt quickly? Do you think he was being extreme or wise? Would it be hard for you to live in austerity?

  Indifferent between modifying the product and not modifying

X Company is considering a modification to one of its main products next year that would make it more attractive to customers. As a result, X Company could increase the selling price by $2.02. However, fixed costs would increase to $16,110. At what u..

  What arguments would brian jones manager of the mining

What arguments would brian jones, manager of the mining division, make to support the transfer pricing method that he prefers.

  Research the bankruptcy process and capital structure

Research the bankruptcy process, capital structure, and legal structure. Explain how these structures can impact a firm's progress

  Determine the overhead costnbsp from the given dataerte inc

determine the overhead costnbsp from the given data.erte inc. manufactures two models of high pressure steam valves the

  What cost of goods sold under lifo for nash llc

A physical count of merchandise inventory on November 30 reveals that there are 74 units on hand. What Cost of goods sold under LIFO is?

  Manufactures gas grills

Gelbart company manufactures gas grills. Fixed costs amount to 22896900 per year. Variable costs per gas grill are 315, and the average price per gas grill is 900. How many gas grills must Gelbart Company sell to break even? Gelbart company sells 428..

  What the profitability index for abc company

What the Profitability Index (PI) is? ABC Company is considering the purchase of a new machine that would cost $500,000. The machine would have a useful life

  Describe the extractor machine is an item of property

If the extractor machine is an asset, further describe if the extractor machine is an item of property, plant and equipment in accordance with MFRS

  What amount should be recorded as depreciation expense

What amount should be recorded as depreciation expense of the leased machine for 2016? Canberra Company signed an eight-year non-cancellable lease

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