Homework Answers
1) 2) 3) 4) 5) The management of River Corporation is considering the purchase of a...
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The management of River Corporation is considering the purchase of a new machine costing $380,000 The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: ncome from Net Cash Year Flow $20,000 20,000 20,000 20,000 20,000 $95,000 95,000 95,000 95,000 95,000 4...
1) 2) 3) 4) 5) The primary advantages of the average rate of return method are...
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The primary advantages of the average rate of return method are its ease of computation and the fact that a. there is less possibility of loss from changes in economic conditions and obsolescence when the commitment is short-term Ob. it is especially useful to managers whose primary concern is liquidity Oc. it emphasizes the amount of income earned over the life of the proposal Od. rankings of proposals are necessary The management of Wyoming Corporation...
Quarterly Sales ($ thousands) Q1 Q3 15 Q2 11 12 Q4 5 Year 1 Year 2...
Quarterly Sales ($ thousands) Q1 Q3 15 Q2 11 12 Q4 5 Year 1 Year 2 8 13 9 6 What are the quarterly seasonal indices? OA. S1 = 1.30 S2 = 1.15 S3 = 0.91 S4 = 0.64 OB. 51 = 0.30 S2 = 1.15 S3 = 0.91 S4 = 1.64 OC. 51 = 1.15 S2 = 0.45 S3 = 0.91 S4 = 0.64 OD. S1 = 1.40 S2 = 1.15 S3 = 1.50 S4 = 0.64
3. CK Company uses the machine for cleaning the furniture. The current machine has purchased since...
3. CK Company uses the machine for cleaning the furniture. The current machine has purchased since the three years ago. The initial cost is $300,000. The machine has the useful life 5 years since the date of purchases. The residual value is $50,000. The Current machine can generate the cash revenue per year is $100,000 and cash operating costs is $60,000 per year. If the company continues to keep or use the current machine, it will have the repairing expense...
4% 4% 6% 3 6% 6% 8% 5 years 2 6 200 300 3. You may...
4% 4% 6% 3 6% 6% 8% 5 years 2 6 200 300 3. You may find the information of two machines below; used machine 25,000 8,000 Machine First Cost Annual Operation Cost Overhaul every 5 years Salvage Value Life, Years new machine 40,000 7,000 2,000 38,000 OD 4,500 6 Which machine is recommended if interest rate is 10% per year? ( any method(20 mins). GOOD LUCK ELNAZ GHOLIPOUR lenovo
mong the decisions) 3. CK Company uses the machine for cleaning paling te old ars ago....
mong the decisions) 3. CK Company uses the machine for cleaning paling te old ars ago. The initial cost is $300,000. uses the machine for cleaning the furniture. The current machine has purchased since the three years ago. The initial cost is The machine has the useful life 5 years since the date o has the useful life 5 years since the date of purchases. The residual value is $50,000. The Current machine can generate the cash revenue per ye...
Tax Impact Capital Investment Projects typically have 4 major categories: 1. Initial Investment: Cash outflow to...
Tax Impact Capital Investment Projects typically have 4 major categories: 1. Initial Investment: Cash outflow to purchase a new machine and the working capital cash outflows (if any) at year o 2. Current disposal of old machine and the effects of gain/loss from sales old machine on tax paid or tax savings (in case of sold of old machine) at year 0. 3. Annual net cash flow from operations: difference between net cash flows under old machine and new machine...
For 11, i chosed 3, is it correct? Spt X Company is considering replacing one of...
For 11, i chosed 3, is it
correct?
Spt X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $60,000 per year; operating costs with the new machine are expected to be $48,000 per year. The new machine will cost $65,000 and will last for six years, at which time it can be sold for $1,000. Thbe current machine will also last for six more years but will...
2. Differential Analysis for Machine Replacement Boyer Digital Components Company assembles circuit boards by using a...
2. Differential Analysis for Machine Replacement Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $90,600, the accumulated depreciation is $36,200, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $188,400. The automatic...
table is in a different pic present value of a 10. AO S-1,288 BO S-1.610 CO...
table is in a different pic
present value of a 10. AO S-1,288 BO S-1.610 CO 8-2,012 D - 10 18 pt X Company must replace one of its current machines with either Maciine A or Machine B. The seful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B S-6,000 5.7.000 -4,000 -8,000 -3.000 -8,000 -3,000 3.000 -2,000 -2,000...
1)
2)
3)
4)
5)
The management of River Corporation is considering the purchase of a new machine costing $380,000 The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: ncome from Net Cash Year Flow $20,000 20,000 20,000 20,000 20,000 $95,000 95,000 95,000 95,000 95,000 4...
1)
2)
3)
4)
5)
The primary advantages of the average rate of return method are its ease of computation and the fact that a. there is less possibility of loss from changes in economic conditions and obsolescence when the commitment is short-term Ob. it is especially useful to managers whose primary concern is liquidity Oc. it emphasizes the amount of income earned over the life of the proposal Od. rankings of proposals are necessary The management of Wyoming Corporation...
Quarterly Sales ($ thousands) Q1 Q3 15 Q2 11 12 Q4 5 Year 1 Year 2 8 13 9 6 What are the quarterly seasonal indices? OA. S1 = 1.30 S2 = 1.15 S3 = 0.91 S4 = 0.64 OB. 51 = 0.30 S2 = 1.15 S3 = 0.91 S4 = 1.64 OC. 51 = 1.15 S2 = 0.45 S3 = 0.91 S4 = 0.64 OD. S1 = 1.40 S2 = 1.15 S3 = 1.50 S4 = 0.64
3. CK Company uses the machine for cleaning the furniture. The current machine has purchased since the three years ago. The initial cost is $300,000. The machine has the useful life 5 years since the date of purchases. The residual value is $50,000. The Current machine can generate the cash revenue per year is $100,000 and cash operating costs is $60,000 per year. If the company continues to keep or use the current machine, it will have the repairing expense...
4% 4% 6% 3 6% 6% 8% 5 years 2 6 200 300 3. You may find the information of two machines below; used machine 25,000 8,000 Machine First Cost Annual Operation Cost Overhaul every 5 years Salvage Value Life, Years new machine 40,000 7,000 2,000 38,000 OD 4,500 6 Which machine is recommended if interest rate is 10% per year? ( any method(20 mins). GOOD LUCK ELNAZ GHOLIPOUR lenovo
mong the decisions) 3. CK Company uses the machine for cleaning paling te old ars ago. The initial cost is $300,000. uses the machine for cleaning the furniture. The current machine has purchased since the three years ago. The initial cost is The machine has the useful life 5 years since the date o has the useful life 5 years since the date of purchases. The residual value is $50,000. The Current machine can generate the cash revenue per ye...
Tax Impact Capital Investment Projects typically have 4 major categories: 1. Initial Investment: Cash outflow to purchase a new machine and the working capital cash outflows (if any) at year o 2. Current disposal of old machine and the effects of gain/loss from sales old machine on tax paid or tax savings (in case of sold of old machine) at year 0. 3. Annual net cash flow from operations: difference between net cash flows under old machine and new machine...
For 11, i chosed 3, is it
correct?
Spt X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $60,000 per year; operating costs with the new machine are expected to be $48,000 per year. The new machine will cost $65,000 and will last for six years, at which time it can be sold for $1,000. Thbe current machine will also last for six more years but will...
table is in a different pic
present value of a 10. AO S-1,288 BO S-1.610 CO 8-2,012 D - 10 18 pt X Company must replace one of its current machines with either Maciine A or Machine B. The seful life of both machines is seven years. Machine A costs $52,000, and Machine B costs $73,000. Estimated annual cash flows with the machines are as follows: Machine A Machine B S-6,000 5.7.000 -4,000 -8,000 -3.000 -8,000 -3,000 3.000 -2,000 -2,000...
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