(Ignore income taxes in this problem.) A company with $615,000 in operating assets is considering the...
(Ignore income taxes in this problem.) A company with $615,000 in operating assets is considering the purchase of a machine that costs $73,000 and which is expected to reduce operating costs by $19,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to: 32.4 years 8.4 years 0.26 years 3.8 years
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(Ignore income taxes in this problem.) A company with $615,000 in operating assets is considering the...
A company with $720,000 in operating assets is considering the purchase of a machine that costs...
A company with $720,000 in operating assets is considering the purchase of a machine that costs $80,000 and which is expected to reduce operating costs by $26,000 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.):
A company with $735,000 in operating assets is considering the purchase of a machine that costs...
A company with $735,000 in operating assets is considering the purchase of a machine that costs $81,000 and which is expected to reduce operating costs by $27,000 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.): (Round your answer to 1 decimal place.)
A company with $825,000 in operating assets is considering the purchase of a machine that costs...
A company with $825,000 in operating assets is considering the purchase of a machine that costs $87,000 and which is expected to reduce operating costs by $19,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to: 4.6 years 9.5 years 0.22 years 43.4 years
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
1. (Ignore income taxes in this problem.) Gocke Company is considering purchasing a machine that would...
1. (Ignore income taxes in this problem.) Gocke Company is considering purchasing a machine that would cost $478,800 and have a useful life of 5 years. The machine would reduce cash operating costs by $114,000 per year. The machine would have no salvage value. Required: a. Compute the payback period for the machine. (10 points) b. Compute the simple rate of return for the machine. (10 points)
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 4%. Ataxia's discount rate is also 4%. 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...
6. (3 points) (Ignore income taxes in this problem) The management of Favreau Corporation is considering...
6. (3 points) (Ignore income taxes in this problem) The management of Favreau Corporation is considering the purchase of a machine that would cost $310,464 and would have a useful life of 5 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $84,000 per year. The internal rate of return on the investment in the new machine is closest to:
\ (Ignore income taxes in this problem.) The Zinger Corporation is considering an investment that has...
\ (Ignore income taxes in this problem.) The Zinger Corporation is considering an investment that has the following data: Year 1 Year 2 Year 3 Year 4 Year 5 Investment $18,000 $5,000 Cash inflow $4,000 $4,000 $11,000 $6,000 $6,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: (Round your answer to 1 decimal place)
The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 3...
The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 3 Year 4 Year 5 Investment Cash inflow Year 1 $ 32,000 $ 8,000 Year 2 $12,000 $ 8,000 $20,000 $16,000 $ 16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: Multiple Choice o 30 years 3.0 years • 3.5 years O 4.0 years o 4.5 years
The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 3...
The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 3 Year 4 Year 5 Investment Cash inflow Year 1 $ 32,000 $ 8,000 Year 2 $12,000 $ 8,000 $20,000 $16,000 $ 16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: Multiple Choice o 30 years 3.0 years • 3.5 years O 4.0 years o 4.5 years
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
1. (Ignore income taxes in this problem.) Gocke Company is considering purchasing a machine that would cost $478,800 and have a useful life of 5 years. The machine would reduce cash operating costs by $114,000 per year. The machine would have no salvage value. Required: a. Compute the payback period for the machine. (10 points) b. Compute the simple rate of return for the machine. (10 points)
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 4%. Ataxia's discount rate is also 4%. 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...
6. (3 points) (Ignore income taxes in this problem) The management of Favreau Corporation is considering the purchase of a machine that would cost $310,464 and would have a useful life of 5 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $84,000 per year. The internal rate of return on the investment in the new machine is closest to:
The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 3 Year 4 Year 5 Investment Cash inflow Year 1 $ 32,000 $ 8,000 Year 2 $12,000 $ 8,000 $20,000 $16,000 $ 16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: Multiple Choice o 30 years 3.0 years • 3.5 years O 4.0 years o 4.5 years
The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 3 Year 4 Year 5 Investment Cash inflow Year 1 $ 32,000 $ 8,000 Year 2 $12,000 $ 8,000 $20,000 $16,000 $ 16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: Multiple Choice o 30 years 3.0 years • 3.5 years O 4.0 years o 4.5 years
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