The production department is proposing the purchase of an automatic insertion machine. They have identified 3...
The production department is proposing the purchase of an automatic insertion machine. They have identified 3 machines and have asked the accountant to analyze them to determine the best average rate of return.
| Machine A | Machine B | Machine C | |
| Estimated Average Income | $47,932.64 | $85,282.20 | $68,037.00 |
| Average Investment | $342,376.00 | $284,274.00 | $453,580.00 |
Select the correct answer.
|
|||
|
|||
|
|||
|
Homework Answers
Add Answer to:
The production department is proposing the purchase of an
automatic insertion machine. They have identified 3...
The production department is proposing the purchase of an automatic insertion machine. It has identified 3...
The production department is proposing the purchase of an automatic insertion machine. It has identified 3 machines and has asked the accountant to analyze them to determine the best cash payback. Machine A Machine B Machine C Annual cash flow $40,000 $50,000 $75,000 Average investment $300,000 $250,000 $500,000 a.Machine C b.Machine A c.Machine B d.All of these choices are equal.
A. The amount of the estimated average income for a proposed investment of $63,000 in a...
A. The amount of the estimated average income for a proposed investment of $63,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of four years, no residual value, and an expected total income yield of $23,400, is? Choose the correct answer below. $15,750 $23,400 $8,100 $5,850 B. Hayden Company is considering the acquisition of a machine that costs $490,000. The machine is expected to have a useful life of six years, a negligible residual...
The management of BNZ bank is considering an investment in automatic teller machines. The machines would...
The management of BNZ bank is considering an investment in automatic teller machines. The machines would cost $513,000 each and have a useful life of 7 years. The bank’s finance manager has estimated that the automatic teller machines will save the bank $110,000 per machine during each year of their life. The machines will have no residual value. Ignore company income taxes. You are required to: a) Calculate the payback period for the proposed investment. b) Calculate the net present...
Spike Inc is considering the purchase of a new machine for the production of computers. Machine A...
Spike Inc is considering the purchase of a new machine for the production of computers. Machine A costs $3,400,000 and will last for 6 years. Variable costs are 20% of sales and fixed costs are $850,000 per year. Machine B costs $5,600,000 and will last for 10 years. Variable costs for the machine are 15% of sales and fixed costs are $1,000,000 per year. The sales for each machine will be $5,000,000 per year. The required rate of return is 8%,...
Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine...
Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,350,000 and will last for 8 years. Variable costs are 38 percent of sales, and fixed costs are $153,000 per year. Machine B costs $4,450,000 and will last for 12 years. Variable costs for this machine are 31 percent of sales and fixed costs are $102,000 per year. The sales for each machine will be $8.9 million per year. The required return...
A company needs to purchase a new machine to maintain its level of production: The Company_is_.considering...
A company needs to purchase a new machine to maintain its level of production: The Company_is_.considering three different machines. The costs, savings and service life related to each mashine are listed in the table below. by $ 750 Machine Al Machine B Machine C First Cost $ 26,000 $30,000 $28.000 Annual savings $12,000 $12,500 $12,750 Anaal maintenance $2.750 $2,500 He first year and increasing bu $75 $1,750 Saluage value $12,500 $6,000 $11,500 service life 3 years 16 years 3 years...
4) The Zone Company is considering the purchase of a new machine machine is expected to...
4) The Zone Company is considering the purchase of a new machine machine is expected to improve productivity and thereby increase cas year for 7 years. It will have no salvage value. The company req of 12 percent on this type of capital investment. (Ignore income taxe new machine at a cost of $1,040,000. The and thereby increase cash inflows by $250,000 per divage value. The company requires a minimum rate of return (Ignore income taxes for this problem.) Required:...
The Zone Company is considering the purchase of a new machine at a cost of $1,040,000....
The Zone Company is considering the purchase of a new machine at a cost of $1,040,000. The machine is expected to improve productivity and thereby increase cash inflows by $250,000 per year for 7 years. It will have no salvage value. The company requires a minimum rate of return of 12 percent on this type of capital investment. (Ignore income taxes for this problem.) Required: 1. Determine the project's estimated internal rate of return (IRR), rounded to the nearest tenth...
Physician's Pharmacy is considering the purchase of a copying machine which it will make available to customers at a pe...
Physician's Pharmacy is considering the purchase of a copying machine which it will make available to customers at a per-copy charge. The copying machine has an initial cost of $7,500, an estimated useful life of five years, and an estimated salvage value of $500. The estimated annual revenue and expenses relating to operation of the machine are as follows: Revenue $8,000 Expenses other than depreciation..... $5,500 All revenue will be received in cash; expenses other than depreciation will be paid...
You are asked to analyze the following proposal to purchase a new machine and are given...
You are asked to analyze the following proposal to purchase a new machine and are given the annual cash flows associated with it: purchase price $500,000 the net operating cash flows after tax are estimated to be $100,000 per year for each of the ten years the cost of capital is 10% a. Calculate the internal rate of return on this project. b. What is the net present value for the project? c. Calculate the payback period. d. Answer the...
A. The amount of the estimated average income for a proposed investment of $63,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of four years, no residual value, and an expected total income yield of $23,400, is? Choose the correct answer below. $15,750 $23,400 $8,100 $5,850 B. Hayden Company is considering the acquisition of a machine that costs $490,000. The machine is expected to have a useful life of six years, a negligible residual...
Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,350,000 and will last for 8 years. Variable costs are 38 percent of sales, and fixed costs are $153,000 per year. Machine B costs $4,450,000 and will last for 12 years. Variable costs for this machine are 31 percent of sales and fixed costs are $102,000 per year. The sales for each machine will be $8.9 million per year. The required return...
A company needs to purchase a new machine to maintain its level of production: The Company_is_.considering three different machines. The costs, savings and service life related to each mashine are listed in the table below. by $ 750 Machine Al Machine B Machine C First Cost $ 26,000 $30,000 $28.000 Annual savings $12,000 $12,500 $12,750 Anaal maintenance $2.750 $2,500 He first year and increasing bu $75 $1,750 Saluage value $12,500 $6,000 $11,500 service life 3 years 16 years 3 years...
4) The Zone Company is considering the purchase of a new machine machine is expected to improve productivity and thereby increase cas year for 7 years. It will have no salvage value. The company req of 12 percent on this type of capital investment. (Ignore income taxe new machine at a cost of $1,040,000. The and thereby increase cash inflows by $250,000 per divage value. The company requires a minimum rate of return (Ignore income taxes for this problem.) Required:...
Physician's Pharmacy is considering the purchase of a copying machine which it will make available to customers at a per-copy charge. The copying machine has an initial cost of $7,500, an estimated useful life of five years, and an estimated salvage value of $500. The estimated annual revenue and expenses relating to operation of the machine are as follows: Revenue $8,000 Expenses other than depreciation..... $5,500 All revenue will be received in cash; expenses other than depreciation will be paid...
Most questions answered within 3 hours.
-
Four transactions are presently running: (The abbreviation R(A)
means Read(A), and so on)
• T1: R(A),R(B),R(J),W(A),W(B),R(D),R(E),R(G)...
asked 7 minutes ago -
A study regarding the relationship between age and the amount of
pressure sales personnel feel in...
asked 21 minutes ago -
A 2014 Pew study found that the average US Facebook user has 338
friends. The study...
asked 24 minutes ago -
Please be very detailed and thorough
For a future/planned mission (not yet launched):
Link: Provide the...
asked 25 minutes ago -
In x86 Assembly Language:
Develop a program that uses four signed, global, short variables
A, B,...
asked 28 minutes ago -
Draw the most stable conformation for
(1,1-dimethylethyl)cyclohexane.
asked 31 minutes ago -
1a)
. State the difference (IN YOUR OWN
WORDS) between
-absolute advantage and comparative
advantage.
-between...
asked 46 minutes ago -
Calculate the mass of 11.3 mL of a liquid with a density of 8
g/mL. INCLUDE...
asked 53 minutes ago -
In the movie "Is America Number One" we see a continued reliance
on a concept that...
asked 52 minutes ago -
In tae-kwon-do, a hand is slammed down onto a target
at a speed of 11 m/s...
asked 52 minutes ago -
consider the following price index in 2017:85; price
index in 2018: 100; price index 2019: 110;...
asked 1 hour ago -
What is the [CH3COO–]/[CH3COOH]
ratio necessary to make a buffer solution with a pH of 4.34?...
asked 1 hour ago