An anticipated purchase of equipment for $500,000, with a useful life of 8 years and no...
An anticipated purchase of equipment for $500,000, with a useful
life of 8 years and no residual value, is expected to yield the
following annual net incomes and net cash flows:
|
Year |
Net Income |
Net Cash Flow |
|
1 |
$60,000 |
$120,000 |
|
2 |
50,000 |
110,000 |
|
3 |
50,000 |
110,000 |
|
4 |
40,000 |
100,000 |
|
5 |
40,000 |
60,000 |
|
6 |
40,000 |
60,000 |
|
7 |
40,000 |
60,000 |
|
8 |
40,000 |
60,000 |
What is the cash payback period?
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An anticipated purchase of equipment for $500,000, with a useful
life of 8 years and no...
An anticipated purchase of equipment for $520,000, with a useful life of 8 years and no...
An anticipated purchase of equipment for $520,000, with a useful life of 8 years and no residual value, is expected to yield the following annual net incomes and net cash flows: Year Net Income Net Cash Flow 1 $60,000 $120,000 2 50,000 110,000 3 50,000 110,000 4 40,000 100,000 5 40,000 80,000 6 40,000 80,000 7 40,000 60,000 8 40,000 60,000 What is the cash payback period? a.5 years b.4 years c.3 years d.6 year
why do they sum net cash flows instead of net income? An anticipated purchase of equipment...
why do they sum net cash flows instead of net income? An anticipated purchase of equipment for $490,000 with a useful life of 8 years and no residual value is expected to yield the following annual net incomes and net cash flows: Year Net Income Net Cash Flow 1 $60,000 $110,000 2 50,000 100,000 3 50,000 100,000 4 40,000 90,000 5 40,000 90,000 6 40,000 90,000 7 40,000 90,000 8 40,000 90,000 What is the cash payback period? a.5 years...
Landram Corporation is considering investing in specialized equipment conting $250,000. The equipment has a useful life...
Landram Corporation is considering investing in specialized equipment conting $250,000. The equipment has a useful life of 5 vear and a residual value of $20,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are Year 2 $ 60,000 $ 20,000 $110,000 $ 40,000 $ 25,000 $325.000 Total cash inflows Landrum Corporation's required rate of retum on investments is 14% What is the Payback period of the Investinent using accumulated cash flows Another Approach...
Landrum Corporation is considering investing in specialized equipment costing $250,000. The equipment has a useful life...
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A machine can be purchased for $236,000 and used for five years, yielding the following net...
A machine can be purchased for $236,000 and used for five years, yielding the following net incomes. In projecting net incomes double-declining depreciation is applied using a five-year life and a zero salvage value. Net income Year 1 $15,000 Year 2 $50,000 Year 3 $72,000 Year 4 $37,500 Years $120,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Beginning Book Value Computation of Annual Depreciation Expense Annual Dept. (40% Accumulated of Book Value)...
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Bloomington Manufacturing Company is considering the purchase of equipment to expand its productive capacity. The equipment...
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Rihanna Company is considering purchasing new equipment for $450,000. It is expected that the equipment will...
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Multiple Choice Question 41 Tamarisk Corp. is considering the purchase of a piece of equipment that...
Multiple Choice Question 41 Tamarisk Corp. is considering the purchase of a piece of equipment that costs $25000. Projected net annual cash flows over the project's life are: Year Net Annual Cash Flow $ 6000 13000 15000 11000 The cash payback period is 2.40 years 2.45 years 2.52 years 2.03 years
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Hardware Corp. is planning to buy production machinery. This machinery's expected useful life is 5 years, with a $10,000 salvage value. They require a minimum rate of return of 12%, and have calculated the following data pertaining to the purchase and operation of this machinery: Year Estimated annual cash inflows $ 60,000 80,000 95,000 115,000 140,000 Estimated annual cash outflows $ 10,000 20,000 25,000 35,000 50,000 Depreciation $30,000 $30,000 $30,000 $30,000 $30,000 Determine the Payback Period, Accounting Rate of Return....
Landram Corporation is considering investing in specialized equipment conting $250,000. The equipment has a useful life of 5 vear and a residual value of $20,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are Year 2 $ 60,000 $ 20,000 $110,000 $ 40,000 $ 25,000 $325.000 Total cash inflows Landrum Corporation's required rate of retum on investments is 14% What is the Payback period of the Investinent using accumulated cash flows Another Approach...
Landrum Corporation is considering investing in specialized equipment costing $250,000. The equipment has a useful life of 5 years and a re sidual value of $20,000. Depreciation is calculated using the straighht-line method. The expected net cash inflows from the investment are: $60,000 $90,000 $110,000 $40,000 $25,000 $325,000 Year 1 Year 2 Year 3 Year 4 Year 5 Total cash inflows Landrum Corporation's required rate of retum on investments is 14%. What is the Payback Penod of the Imvestment using...
A machine can be purchased for $236,000 and used for five years, yielding the following net incomes. In projecting net incomes double-declining depreciation is applied using a five-year life and a zero salvage value. Net income Year 1 $15,000 Year 2 $50,000 Year 3 $72,000 Year 4 $37,500 Years $120,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Beginning Book Value Computation of Annual Depreciation Expense Annual Dept. (40% Accumulated of Book Value)...
Bloomington Manufacturing Company is considering the purchase of equipment to expand its productive capacity. The equipment is expected to generate the following cash revenues and expenses over its useful life. Year 1 2 BLOOMINGTON MANUFACTURING COMPANY DATA FOR CAPITAL BUDGETING ANALYSIS-EQUIPMENT Cash Revenues Cash Expenses $ 30,000 $ 40,000 50,000 40,000 30,000 20,000 22,000 25,000 20,000 20,000 The cost of the equipment is $60,000 and the equipment is expected to have a salvage value of $6,000. The company uses 200%...
Bloomington Manufacturing Company is considering the purchase of equipment to expand its productive capacity. The equipment is expected to generate the following cash revenues and expenses over its useful life. Year 1 2 BLOOMINGTON MANUFACTURING COMPANY DATA FOR CAPITAL BUDGETING ANALYSIS-EQUIPMENT Cash Revenues Cash Expenses s 30,000$ 40,000 50,000 40,000 30,000 20,000 22,000 25,000 20,000 20,000 5 The cost of the equipment is $60,000 and the equipment is expected to have a salvage value of $6,000. The company uses 200%...
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