Which machine should the company choose

Assignment Help Financial Accounting
Reference no: EM132546066

PKP Sdn. Bhd. must choose between two machines, X and Y. The purchasing costs today and maintenance expenses at the end of every year for these two machines are given as follows:

Year

Machine X

YEAR

0- RM2,000,000

1- RM200,000

2- RM200,000

3- RM200,000

4-         -

5-            -

Machine Y

YEAR

0- RM2,500,000

1- RM210,000

2- RM210,000

3- RM210,000

4- RM210,000

5- RM210,000

Question 1: All cash flows occur at year-end and the discount rate is 12%. Assume that revenues are the same regardless of the machine, and assume that whichever machine the company chooses, it will continue to buy that model forever. Which machine should the company choose? Tax rate is 24% and simplified straight line is used as the method of depreciation.

Reference no: EM132546066

Questions Cloud

Explain how family systems theory can be used : What is a definition of family that encompasses the different family structures prevalent today? Discuss the importance of acknowledging nontraditional family.
Announcement and make a? profit : Would you expect to be able to sell Roybus stock on hearing this announcement and make a? profit? Explain.
Discuss about the national healthcare issue : Review the Resources and think about the national healthcare issue/stressor you previously selected for study in Module 1. Reflect on the competing needs.
How much net cash will he have at the end : what would the payment at the end of 3rd year look like at borrowing rate of 10% over nine years - how much net cash will he have at the end
Which machine should the company choose : Which machine should the company choose? Tax rate is 24% and simplified straight line is used as the method of depreciation.
Formula and financial calculator methods : What's is the present value of $210,000 to be received after 25 years with a 20 percent discount rate?
How do determine the a depreciation schedule for six years : How do determine the a depreciation schedule for six years using the double-declining-balance.University Car Wash built a deluxe car wash across
Why is the concept of family health important : Why is the concept of family health important? Consider the various strategies for health promotion. How does a nurse determine which strategy would best enable
How family systems theory can be applied to solicit changes : Describe how family systems theory can be applied to solicit changes in family members that, in turn, initiate positive changes to the overall family functions.

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!

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