Homework Answers
Present value factor = Investment / Annual net cash inflows
= 1360000/208749
= 6.515
Internal rate of return = 7%
Option B. is correct answer.
Add Answer to:
Luong Machines Company is evaluating an investment of $1,360,000 which will yield net cash inflows of...
Question 19 What does a cost variance measure? Not yet answered Marked out of 2.00 P...
Question 19 What does a cost variance measure? Not yet answered Marked out of 2.00 P Flag question Select one: O A. the volume discounts companies receive when ordering direct materials in large quantities O B. the difference between the cost the company pays and the cost its competitors pay OC. the change in costs over time O D. how well the business keeps unit costs of material and labor inputs within standards Question 20 Not yet answered Luong Machines...
8 pt X Company must replace one of its current machines with machines is seven years. Machine A costs $52,000, and...
8 pt X Company must replace one of its current machines with machines is seven years. Machine A costs $52,000, and Machine B replace one of its current machines with either Machine A or Machine B. The useful life of both machines are as follows: Machine A costs $52,000, and Machine B costs $60,000. Estimated annual cash flows with the two Year Machine A Machine B $-6,000 $-7,000 -8,000 -4,000 -3,000 -8,000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 -8,000...
X Company is considering replacing one of its machines in order to save operating costs. Operating...
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $61,000 per year; operating costs with the new machine are expected to be $46,000 per year. The new machine will cost $69,000 and will last for five years, at which time it can be sold for $1,500. The current machine will also last for five more years but will not be worth anything at that time. It cost...
X Company is considering replacing one of its machines in order to save operating costs. Operating...
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $65,000 per year; operating costs with the new machine are expected to be $47,000 per year. The new machine will cost $70,000 and will last for five years, at which time it can be sold for $1,500. The current machine will also last for five more years but will not be worth anything at that time. It cost...
X Company must replace one of its current machines with either Machine A or Machine B....
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven years. Machine A costs $51,000, and Machine B costs $59,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 7 -4,000 -2,000 If X Company buys Machine B instead of Machine...
On January 1, 2007, Phillips, Inc. leased a new machine from U.S. Leasing. The specific information...
On January 1, 2007, Phillips, Inc. leased a new machine from U.S. Leasing. The specific information on the lease is as follows: Lease inception Annual rental payment at December 31 of each year Economic life of the machine Market value of the machine Interest rate used by Phillips, Inc. End of 7 - year lease term January 1, 2007 $ 51,352 8 years $ 275,000 10% December 31, 2013 On January 1, 2007, Phillips, Inc. should record a lease liability...
X Company must replace one of its current machines with either Machine A or Machine B....
X Company must replace one of its current machines with either
Machine A or Machine B. The useful life of both machines is seven
years. Machine A costs $52,000, and Machine B costs $55,000.
Estimated annual cash flows with the two machines are as
follows:
Year Machine A Machine B
1 $-6,000 $-7,000
2 -8,000 -4,000
3 -8,000. -3,000
4 -8,000 -3,000
5 -6,000 -3,000
6 -5,000 -2,000
7 -4,000 -2,000
If X Company buys Machine B instead of Machine...
X Company is planning to launch a new product. A market research study, costing $150,000, was...
X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $156.000 in each of the first two years and $104,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $93,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $160,000, was...
X Company is planning to launch a new product. A market research study, costing $160,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $170,000 in each of the first two years and $117,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $76,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indi...
X Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $161,000 in each of the first two years and $104,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $90,000. New manufacturing equipment will have to be purchased for...
Question 19 What does a cost variance measure? Not yet answered Marked out of 2.00 P Flag question Select one: O A. the volume discounts companies receive when ordering direct materials in large quantities O B. the difference between the cost the company pays and the cost its competitors pay OC. the change in costs over time O D. how well the business keeps unit costs of material and labor inputs within standards Question 20 Not yet answered Luong Machines...
8 pt X Company must replace one of its current machines with machines is seven years. Machine A costs $52,000, and Machine B replace one of its current machines with either Machine A or Machine B. The useful life of both machines are as follows: Machine A costs $52,000, and Machine B costs $60,000. Estimated annual cash flows with the two Year Machine A Machine B $-6,000 $-7,000 -8,000 -4,000 -3,000 -8,000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 -8,000...
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $61,000 per year; operating costs with the new machine are expected to be $46,000 per year. The new machine will cost $69,000 and will last for five years, at which time it can be sold for $1,500. The current machine will also last for five more years but will not be worth anything at that time. It cost...
On January 1, 2007, Phillips, Inc. leased a new machine from U.S. Leasing. The specific information on the lease is as follows: Lease inception Annual rental payment at December 31 of each year Economic life of the machine Market value of the machine Interest rate used by Phillips, Inc. End of 7 - year lease term January 1, 2007 $ 51,352 8 years $ 275,000 10% December 31, 2013 On January 1, 2007, Phillips, Inc. should record a lease liability...
X Company must replace one of its current machines with either
Machine A or Machine B. The useful life of both machines is seven
years. Machine A costs $52,000, and Machine B costs $55,000.
Estimated annual cash flows with the two machines are as
follows:
Year Machine A Machine B
1 $-6,000 $-7,000
2 -8,000 -4,000
3 -8,000. -3,000
4 -8,000 -3,000
5 -6,000 -3,000
6 -5,000 -2,000
7 -4,000 -2,000
If X Company buys Machine B instead of Machine...
X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $156.000 in each of the first two years and $104,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $93,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $161,000 in each of the first two years and $104,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $90,000. New manufacturing equipment will have to be purchased for...
Most questions answered within 3 hours.
-
1- What are 5 general characteristics of Botticelli’s
paintings?
2- Describe 5 important traits of Flemish...
asked 5 minutes ago -
A golfer claims that his average golf score at the course he
plays regularly is less...
asked 19 minutes ago -
On May 1, First Bank perfected a security interest in Debtor’s
inventory. On June 1, Bob...
asked 1 hour ago -
A new kind of typhoid shot is being developed by a medical
research team. The old...
asked 2 hours ago -
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 4 hours ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 5 hours ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 7 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 7 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 7 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 7 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 8 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 8 hours ago