Incremental revenue = (74-35-14)*5*52 = 6500
Initial investment = 34800+4050+800 = 39650
Cash payback period = Initial investment/Incremental revenue = 39650/6500 = 6.10 years
Legend Service Center just purchased an automobile hoist for $34,800. The hoist has an 8-year life...
Legend Service Center just purchased an automobile hoist for $32,700. The hoist has an 8-year life and an estimated salvage value of $3,350. Installation costs and freight charges were $3,710 and $870, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 7 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $35,...
Legend Service Center just purchased an automobile hoist for $32,700. The hoist has an 8-year life and an estimated salvage value of $3,350. Installation costs and freight charges were $3,710 and $870, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 7 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $35,...
Legend Service Center just purchased an automobile hoist for $33,900. The hoist has an 8-year life and an estimated salvage value of $3,000. Installation costs and freight charges were $4,200 and $900, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $35,...
Exercise 24-9 Partially correct answer. Your answer is partially correct. Try again. Legend Service Center just purchased an automobile hoist for $32,900. The hoist has an 8-year life and an estimated salvage value of $3,640. Installation costs and freight charges were $4,140 and $830, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 6 extra mufflers per week. Each...
URCES Exercise 20-9 Legend Service Centers chased an automobile hot for $31.500. The hot has an arenda d a va of $3.010. n o n costs and freight charges were $3.560 and $780, respectively. Legend west -ne depreciation The new host will be used to replace mufflers and tires on om Legend estimates that the new hit wil enable his mechanics to replace 7 extra mufflers per week. Each muffler sells for $75 installed. The cost of a muer is...
Kimmel, Accounting, 6e PRIN. OF ACCT ISIT (ACCT 2101 & 2102 Assignment Gradebook ORION Downloadable eTextbook CALCULATOR PULL SCREEN PRINTER VERSION BACK NEXT Exercise 24-9 Legend Service Center just purchased an automobile hoist for $35,100. The hoist has an 8-year life and an estimated salvage value of $3,760. Installation costs and freight charges were $4,130 and $730, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new...
U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $164,800 $180,250 $206,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 3 14,420 16,480 21,630 4 14,420 12,360 13,390 5 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 Depreciation is computed by the straight-line method with no salvage value. The company’s cost of capital...