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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...
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 8%. Ataxia's discount rate is also 8%. 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...
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 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 8%. Ataxia's discount rate is also 8%. 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...
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $23,000...
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $23,000 and will have a 6-year useful life and a $5,200 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $33,200 per year. The cost of these prescriptions to the pharmacy will be about $27,400 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore...
Croce, Inc., is investigating an investment in equipment that would have a useful life of 8...
Croce, Inc., is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 11% in its capital budgeting. The net present value of the investment, excluding the salvage value, is -$580,353. (lgnore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. How large would the salvage value of the equipment have to be to make the investment...
(Ignore income taxes in this problem.) Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions....
(Ignore income taxes in this problem.) Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $29,000 and will have a 6-year useful life and a $4,800 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $32,800 per year. The cost of these prescriptions to the pharmacy will be about $26,600 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for...
13. The management of Lanzilotta Corporation is considering a project that would require an investment of...
13.
The management of Lanzilotta Corporation is considering a project that would require an investment of $228,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $29,000. The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1...
Olinick Corporation is considering a project that would require an investment of $329,000 and would last...
Olinick Corporation is considering a project that would require an investment of $329,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.): $215,000 28,000 187,000 Sales Variable expenses Contribution margin Fixed expenses Salaries Rents Depreciation Total fixed expenses Net operating income 35,000 48,000 43,000 126,000 $ 61,000 The scrap value of the project's assets at the end of the project would be...
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 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
2. The management of Nixon Corporation is investigating purchasing equipment that would cost $536,000 and have...
2.
The management of Nixon Corporation is investigating purchasing equipment that would cost $536,000 and have a 7 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $373,000 per year and cash operating expenses by $215,500 per year. (Ignore income taxes.) Required: Determine the simple rate of return on the investment. (Round your answer to 1 decimal place.) Simple rate of return The management of Truelove Corporation is considering...
Croce, Inc., is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 11% in its capital budgeting. The net present value of the investment, excluding the salvage value, is -$580,353. (lgnore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. How large would the salvage value of the equipment have to be to make the investment...
13.
The management of Lanzilotta Corporation is considering a project that would require an investment of $228,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $29,000. The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1...
Olinick Corporation is considering a project that would require an investment of $329,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.): $215,000 28,000 187,000 Sales Variable expenses Contribution margin Fixed expenses Salaries Rents Depreciation Total fixed expenses Net operating income 35,000 48,000 43,000 126,000 $ 61,000 The scrap value of the project's assets at the end of the project would be...
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 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
2.
The management of Nixon Corporation is investigating purchasing equipment that would cost $536,000 and have a 7 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $373,000 per year and cash operating expenses by $215,500 per year. (Ignore income taxes.) Required: Determine the simple rate of return on the investment. (Round your answer to 1 decimal place.) Simple rate of return The management of Truelove Corporation is considering...
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