A company is considering investing in a new equipment that will cost the company $2,522 at...
A company is considering investing in a new equipment that will cost the company $2,522 at time=0. The after-tax cash flows are expected to be $721 each year for 15 years. What is the payback period?
Enter your answer rounded off to two decimal points.
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A company is considering investing in a new equipment that will
cost the company $2,522 at...
Company A is considering investing in a piece of equipment with a cost of $150,000. Annual...
Company A is considering investing in a piece of equipment with a cost of $150,000. Annual cash flows over the 7-year useful life are projected to be $27,000. The payback period is?
Monty Company is considering purchasing new equipment for $453,600. It is expected that the equipment will...
Monty Company is considering purchasing new equipment for $453,600. It is expected that the equipment will produce net annual cash flows of $54,000 over its 10-year useful life. Annual depreciation will be $45,360. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years
Rihanna Company is considering purchasing new equipment for $452,400. It is expected that the equipment will...
Rihanna Company is considering purchasing new equipment for $452,400. It is expected that the equipment will produce net annual cash flows of $58,000 over its 10-year useful life. Annual depreciation will be $45,240. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years
Alternate Exercise A Diane Manufacturing Company is considering investing $500,ooo in new equipment with an estimated...
Alternate Exercise A Diane Manufacturing Company is considering investing $500,ooo in new equipment with an estimated useful life of 10 years and no salvage value. The equipment is expected to produce $320,000 in cash inflows and $20o,ooo in cash outflows annually. The company uses straight- line depreciation, and has a 30% tax rate. a. Determine the annual estimated net income and net cash inflow. b. Calculate the payback period c. Calculate the accounting rate of return. Problem E Merryll, Inc.,...
Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost...
Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $246,000 and have a $49,200 salvage value in five years. The annual net income from the equipment is expected to be $29,520, and depreciation is $39,360 per year. Calculate Blue Marlin's annual rate of return and payback period for the equipment. (Do not round intermediate calculations. Round your Payback Period to 2 decimal places.) Annual Rate of Return Years Payback Period
Rihanna Company is considering purchasing new equipment for $316,800. It is expected that the equipment will...
Rihanna Company is considering purchasing new equipment for $316,800. It is expected that the equipment will produce net annual cash flows of $44,000 over its 10-year useful life. Annual depreciation will be $31,680. Compute the cash payback period.
Rihanna Company is considering purchasing new equipment for $450,000. It is expected that the equipment will...
Rihanna Company is considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $60,000 over its 10-year useful life. Annual depreciation will be $45,000. Compute the cash payback period.
Large Manufacturing, Inc. is considering investing in some new equipment whose data are shown below. The...
Large Manufacturing, Inc. is considering investing in some new equipment whose data are shown below. The equipment has a 3-year class life and will be depreciated by the MACRS depreciation system, and it will have a positive pre-tax salvage value at the end of Year 3, when the project will be closed down. Also, some new working capital will be required, but it will be recovered at the end of the project's life. Revenues and cash operating costs are expected...
A company is considering a three-year project. New equipment will cost $200,000. The equipment falls in...
A company is considering a three-year project. New equipment will cost $200,000. The equipment falls in the MACRS three-year class (.3333, .4445, .1481, .0741) it will have a salvage value at the end of the project of $50,000. The project is expected to produce sales of $100,000 in the first year and sales will increase by $50,000 each year after that. Expense are expected to be 40% of sales. An investment in net-working capital of $5,000 is required at the...
Nyke inc. is a sporting shoes company which is considering investing in a new equipment for...
Nyke inc. is a sporting shoes company which is considering investing in a new equipment for the production of a new line of tennis and football shoes for its elite customers. The new equipment will costs $250,000 and an additional $80,000 is needed for installation. The equipment which falls into the MACRS 3-yr class, would be sold after three years for $35,000. The equipment will generate additional annual revenues of $210,000 and will have annual operating expenses of $60,000. An...
Monty Company is considering purchasing new equipment for $453,600. It is expected that the equipment will produce net annual cash flows of $54,000 over its 10-year useful life. Annual depreciation will be $45,360. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years
Alternate Exercise A Diane Manufacturing Company is considering investing $500,ooo in new equipment with an estimated useful life of 10 years and no salvage value. The equipment is expected to produce $320,000 in cash inflows and $20o,ooo in cash outflows annually. The company uses straight- line depreciation, and has a 30% tax rate. a. Determine the annual estimated net income and net cash inflow. b. Calculate the payback period c. Calculate the accounting rate of return. Problem E Merryll, Inc.,...
Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $246,000 and have a $49,200 salvage value in five years. The annual net income from the equipment is expected to be $29,520, and depreciation is $39,360 per year. Calculate Blue Marlin's annual rate of return and payback period for the equipment. (Do not round intermediate calculations. Round your Payback Period to 2 decimal places.) Annual Rate of Return Years Payback Period
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