Measure of the value of the machine

Assignment Help Accounting Basics
Reference no: EM13766902

The following information is provided about a particular machine used by a company in its operations. The machine is technological in nature and new models are coming out all the time. The machine originally cost £80,000 and it would cost £140,000 now to replace this machine. The company expects to receive £112,000 (discounted to present value) in cash inflows from using this machine over the next 5 years. If we were to sell it now, the machine would bring in £60,000. Consider the decision usefulness of accounting information produced when using each of the above figures as a measure of the value of the machine. In particular, consider usefulness from the perspective of the following stakeholders:

(a) Shareholders

(b) Creditors

(c) Employees

Reference no: EM13766902

Questions Cloud

Required rate of return-treasury bond and market return : Try to determine the required rate of return on Mary Farm Corporation's common stock. The firm's beta is 1.6. The rate on a 10-year treasury bond is 2.38 percent, and the market return is 8.06 percent.
Asset account and increase a liability account : The general manager of a business encounters many different types of business transactions. Provide an example for each of the following transactions that would describe the effect on the accounting equation. Each situation is independent of the o..
Define the conditional jump statements causes a jump to dest : Assume for each part of this problem that the EAX register contains 00 00 00 4F and the doubleword referenced by value contains FF FF FF 38. Determine whether each of the conditional jump statements causes a jump to dest.
How influential was jefferson in shaping the early republic : How influential was Jefferson in shaping the Early Republic and When replying to your classmates, evaluate their example and whether it is a persuasive argument for Jefferson's formative presidency
Measure of the value of the machine : Consider the decision usefulness of accounting information produced when using each of the above figures as a measure of the value of the machine. In particular, consider usefulness from the perspective of the following stakeholders:
Yield to maturity of this bond-annual coupon payments : Dan is going to buy a 19-year bond that pays a coupon rate of 11.56% per year, and has a $1,000 par value. The bond currently priced at $1,326.92? What is the yield to maturity of this bond? Assume annual coupon payments.
Landscape of the health care system : Write a 750- to 1050-word reflection detailing the changing landscape of the health care system. Some things to consider.
What are the four main regions of the english colonies : What are the four main regions of the English colonies? What different ways did the arrival of Europeans affect Native American groups in North America
The split has no effect on the total market value : JPix management is considering a stock split. JPix currently sells for $65 per share, and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split assuming that the split has no effect on the total marke..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Ireland company produces a special spray nozzle the

ireland company produces a special spray nozzle. the budgeted indirect total cost of inserting the spray nozzle is

  State the dollar amounts that should appear in bailey

wodor company is involved in four separate industries. selected financial information concerning twodors involvement in

  Calculate the amount of interest due at the end of the term

simple versus compound interest for each of the following notes calculate the simple interest due at the end of the

  Cutting edge corp produces sporting equipment in 2012 the

cutting edge corp. produces sporting equipment. in 2012 the first year of operations cutting edge produced 25000 units

  The working capital would be released for use elsewhere

the working capital would be released for use elsewhere when the project is completed. what is the net present value of

  Hi-tek labs performs steroid testing services to high

hi-tek labs performs steroid testing services to high schools colleges and universities.because the company deals

  The cash account for interactive systems at february 28

the cash account for interactive systems at february 28 2010 indicated a balance of 7635. the bank statement indicated

  E 3 gilbert inc which uses a process costing system makes a

work in process inventory accounts in process costing systems e 3. gilbert inc. which uses a process costing system

  What amount must he invest today if his investment earns 8

what amount must he invest today if his investment earns 8 compounded annually? what amount must he invest if his

  Compute production costs per unit

Compute production costs per unit for both approaches and for both quarters.

  Budgeted volume-standard volume-overhead rate

Printers Inc. manufactures and sells a mid-volume color printer (MC) and a high-volume color printer (HC). Each MC requires 100 direct labor hours to manufacture, and each HC requires 150 direct labor hours.

  Olivares enterprises makes rainberry shampoo for

olivares enterprises makes rainberry shampoo for professional hair stylists. on july 31 2015 5200 liters of shampoo

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd