Homework Answers
ANNUAL NET CASH INFLOW=60000/4
= 15000
ANNUAL INCREMENTAL NET OPERATING INCOME=5000
DEPRECIATION=60000/6=10000
SIMPLE RATE OF RETURN=ANNUAL INCREMENTAL NET OPERATING INCOME/INITIAL INVESTMENT
5000/60000
=8.33%
Add Answer to:
Jark Corporation has invested in a machine that cost $60,000, that has a useful life of...
1. Jark Corporation has invested in a machine that cost $60,000, that has a useful life...
1. Jark Corporation has invested in a machine that cost $60,000, that has a useful life of six years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.): A) 8.3% B) 7.2% C) 9.5% D) 25%...
ark Corporation has invested in a machine that cost $78,000, that has a useful life of...
ark Corporation has invested in a machine that cost $78,000, that has a useful life of six years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.):
The jackson company has invested in a machine that cost $70000, that has a useful life...
The jackson company has invested in a machine that cost $70000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being depreciated using the straight line method, based on its useful life. It has a payback period of four years. What Is the simple rate of return on the machine?
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost of the equipment Annual cash savings Life of the machine $50,000 $15,000 8 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project. The payback period is closest to: Multiple Choice 3.33 years o 30 years o 8.0 years 8.0 years...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost of the equipment Annual cash savings Life of the machine $50,000 $15,000 8 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project The simple rate of return would be closest to: Multiple Choice O 30.0% . 17.5% 18.75% 0 12.5%...
Vandezande Inc. is considering the acquisition of a new machine that costs $361,000 and has a...
Vandezande Inc. is considering
the acquisition of a new machine that costs $361,000 and has a
useful life of 5 years with no salvage value. The incremental net
operating income and incremental net cash flows that would be
produced by the machine are (Ignore income taxes.):
Vandezande Inc. is considering the acquisition of a new machine that costs $361,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash...
A machine that cost $780,000 has an estimated residual value of $60,000 and an estimated useful...
A machine that cost $780,000 has an estimated residual value of $60,000 and an estimated useful life of six years. The company uses straight-line depreciation. Calculate its book value at the end of year 5. (Do not round intermediate calculations.) Value
A company is planning to purchase a machine that will cost $32,400, have a six-year life,...
A company is planning to purchase a machine that will cost $32,400, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? $132.000 Sales Cost: Manufacturing Depreciation on machine Selling and administrative expenses $53,400 5,400 44,000 (102,800) Income before...
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has...
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 9 years with no salvage value at the end of the 9 years. Ataxia's internal rate of return on this equipment is 4%. Ataxia's discount rate is also 4%. The payback period on this equipment is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables...
A company with $500,000 in operating assets is considering the purchase of a machine that costs...
A company with $500,000 in operating assets is considering the purchase of a machine that costs $60,000 and which is expected to reduce operating costs by $15,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.): Multiple Choice O 0.25 years 8.3 years • 4 years 4 years 33.3 years
1. Jark Corporation has invested in a machine that cost $60,000, that has a useful life of six years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.): A) 8.3% B) 7.2% C) 9.5% D) 25%...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost of the equipment Annual cash savings Life of the machine $50,000 $15,000 8 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project. The payback period is closest to: Multiple Choice 3.33 years o 30 years o 8.0 years 8.0 years...
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost of the equipment Annual cash savings Life of the machine $50,000 $15,000 8 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project The simple rate of return would be closest to: Multiple Choice O 30.0% . 17.5% 18.75% 0 12.5%...
Vandezande Inc. is considering
the acquisition of a new machine that costs $361,000 and has a
useful life of 5 years with no salvage value. The incremental net
operating income and incremental net cash flows that would be
produced by the machine are (Ignore income taxes.):
Vandezande Inc. is considering the acquisition of a new machine that costs $361,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash...
A machine that cost $780,000 has an estimated residual value of $60,000 and an estimated useful life of six years. The company uses straight-line depreciation. Calculate its book value at the end of year 5. (Do not round intermediate calculations.) Value
A company is planning to purchase a machine that will cost $32,400, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? $132.000 Sales Cost: Manufacturing Depreciation on machine Selling and administrative expenses $53,400 5,400 44,000 (102,800) Income before...
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 9 years with no salvage value at the end of the 9 years. Ataxia's internal rate of return on this equipment is 4%. Ataxia's discount rate is also 4%. The payback period on this equipment is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables...
A company with $500,000 in operating assets is considering the purchase of a machine that costs $60,000 and which is expected to reduce operating costs by $15,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.): Multiple Choice O 0.25 years 8.3 years • 4 years 4 years 33.3 years
Most questions answered within 3 hours.
-
A check-processing center uses exponential smoothing to forecast
the number of incoming checks each month. The...
asked 2 minutes ago -
Teams with high levels of ______ and ______ deal with task
conflict better than those without...
asked 13 minutes ago -
Create a C++ project called lab3b and add the following source
code init_struct.cpp to the project....
asked 24 minutes ago -
12.
A budget that can be easily adjusted to show budgeted revenues,
costs, and cash flows...
asked 32 minutes ago -
________ unemployment changes slowly and depends on
________.
Select one:
a. Frictional; the rate at which...
asked 1 hour ago -
These surveys collect information in low- and
middle-income countries regarding the total fertility rate and the...
asked 1 hour ago -
I need to determine the concentration of hydrogen peroxide in a
solution using titrimetric analysis
25...
asked 1 hour ago -
Your are the Vice-President of operations for a New Orleans food
chain. In the aftermath of...
asked 1 hour ago -
Create a flowchart and a program; test the program. Program
Requirements.
- There are 10 members...
asked 1 hour ago -
Which of the following is not a sensory receptor?
a. a hair cell
b. a rod
c. a...
asked 1 hour ago -
Does the launch speed depend significantly upon the launching
angle? Is it reasonable?
asked 2 hours ago -
A disc of moment of inertia 3.00 kgm2 is rotating with angular
velocity 2.00 rad/s about...
asked 1 hour ago