What is the net present value of the investment of machine

Assignment Help Financial Accounting
Reference no: EM13863759

A company is considering the purchase of a new machine that will cost the company $30,000 and will be worth zero at the end of 3 years. Their current tax rate is 20% and they will depreciate the machine $10,000 over the next 3 years. The cost of capital is 4% for the company. What is the net present value of the investment of the machine?

Reference no: EM13863759

Previous Q& A

  Identifying threats relevant to a particular organization

Explain at least two different risk assessment methodologies - describe the key approaches to identifying threats relevant to a particular organization.

  Potential responses to financial statement level risks

In designing further audit procedures, the auditors should assess the risks of material misstatement of the financial statements. Describe the auditors' general approach to such risk assessment. Identify potential responses to financial statement lev..

  What is projected net cash flow

When you first start out, you can expect sales to be well below 1,000 cups daily. what is your projected net cash flow if you only sell 300 m medium cups of coffee daily (m-f) at $3.50 per cup and have expenses of $6,000 for the week?

  Prepare dressers adjusting entry

Dresser Company’s weekly payroll, paid on Fridays, totals $8,080. Employees work a 5-day week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to record the $8,080 cash payment on Friday, January 2.

  Compute service revenue and operating expenses

Kelly Company had cash receipts from customers in 2014 of $150,220. Cash payments for operating expenses were $97,860. Kelly has determined that at January 1, accounts receivable was $13,810, and prepaid expenses were $18,340. At December 31, account..

  Brief overview of the business and why you chose business

Pick a country in Central or South America to open a business (student choice for type of business and country). Give a brief overview of the business, why you chose the business and why you choose the Country

  Debit salaries and wages expense and credit salaries

Assume that Best Buy made a December 31 adjusting entry to debit Salaries and Wages Expense and credit Salaries and Wages Payable for $4,140 for one of its departments. On January 2, Best Buy paid the weekly payroll of $7,270. Prepare Best Buy’s (a) ..

  Journal entry to record receipt

Included in Gonzalez Company’s December 31 trial balance is a note receivable of $23,400. The note is a 4-month, 10% note dated October 1. Prepare Gonzalez’s December 31 adjusting entry to record $585 of accrued interest, and the February 1 journal e..

  Considered in valuing the deferred tax asset account

You have completed a preliminary draft of the year-end financial statements and notes and have distributed it to members of the board of directors for review. According to your computations, the company will be reporting yet another loss—the third on..

  Write a paper focusing on grievances and arbitration

For this first assignment, you will write a two-page paper focusing on the topic below: Grievances and Arbitration

Reviews

Write a Review

 

Similar Q& A

  What is depreciation on the building

At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2014 and 2015 was calculated using the straight-line method, a 25-year useful ..

  Determine actual warranty costs

Determine Actual warranty costs

  Computation of contribution per unit

Computation of contribution per unit for various models - What is the per unit contribution margin for each of the two models?

  Prepare a budgeted balance sheet at december 31-2008

Prepare a budgeted income statement and a budgeted statement of retained earnings for the year ended December 31, 2008, using absorption costing.

  Record the ending balances from the april

Record the ending balances from the April 30 post closing trial balance into the ledger sheets or alternatively, you may create T-accounts on an Excel spreadsheet.

  Determine merchandise inventory

Determine merchandise inventory

  Total contribution margin is equal

Total contribution margin is equal to: A. total sales less fixed costs B. fixed costs plus profits C. Variable costs plus profits D. total sales less profits

  Preparing your year-end financial statements

You own Widgets ‘R Us and are preparing your year-end financial statements. What inventory system do you use and why? What are its advantages and disadvantages? What activities should you perform to correctly account for your inventory at year-end?

  Find the cost of common equity

Find the cost of common equity and its WACC and Cost of common equity and WACC - target capital structure of 40% debt and 60% common equity,

  Qin july 2010 zinger corp purchased 20000 gallons of

qin july 2010 zinger corp purchased 20000 gallons of numerol for 61000 to use in the production of product 43mr7. in

  Companys overall net operating income

A study has been conducted to determine if one of the departments in Parry Company should be discontinued. The contribution margin in the department is $50,000 per year. Fixed expenses charged to the department are $65,000 per year. These data indica..

  Prepare all necessary journal entries for roley

Roley paid freight costs of $1,200. On July 3, Roley returned damaged goods and received credit of $6,000. On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley.

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