User Account

All Pages

A company wishes to buy new equipment for 35000 the

Assignment Help Accounting Basics
Reference no: EM13575015

A company wishes to buy new equipment for $35,000. The equipment is expected to generate an additional $9,600 in cash inflows for seven years. All cash flows occur at year-end. A bank will make a $35,000 loan to the company at a 10% interest rate so that the company can purchase the equipment. Use the table below to determine break-even time for this equipment.
Year Present Value of 1 at 10%

  • 0 1.0000
  • 1 0.9091
  • 2 0.8264
  • 3 0.7513
  • 4 0.6830
  • 5 0.6209
  • 6 0.5645
  • 7 0.5132
  1. Break-even time is between 3 and 4 years.
  2. Break-even time is between 4 and 5 years.
  3. Break-even time is between 5 and 6 years.
  4. Break-even time is between 6 and 7 years.
  5. This project will never break-even.

Reference no: EM13575015

Questions Cloud

Backwater corp has 8 percent coupon bonds making annual : 1. martin software has 10.0 percent coupon bonds on the market with 19 years to maturity. the bonds make semiannual
A company is planning to purchase a machine that will cost : a company is planning to purchase a machine that will cost 33600 have a six-year life and be depreciated over a
Saxon manufacturing is considering purchasing two machines : saxon manufacturing is considering purchasing two machines. each machine costs 9000 and will produce cash flows as
Marsden manufactures a cat food product called special : marsden manufactures a cat food product called special export. marsden currently has 10000 bags of special export on
A company wishes to buy new equipment for 35000 the : a company wishes to buy new equipment for 35000. the equipment is expected to generate an additional 9600 in cash
Saitama amusements corporation places electronic games and : saitama amusements corporation places electronic games and other amusement devices in supermarkets and similar outlets
What is the firms weighted cost of capital if the : a firm with a 40 percent marginal tax rate has a capital structure of 60000000 in debt and 140000000 in equity. what
Taffy industries is considering purchasing equipment : taffy industries is considering purchasing equipment costing 60000 with a 6-year useful life. the equipment will
A company is planning to purchase a machine that will cost : a company is planning to purchase a machine that will cost 26400 has a six-year life and would be depreciated over a

Reviews

Write a Review

Accounting Basics Questions & Answers

  Reporting the interest revenue

The cash selling price of the equipment is $5,174,552, which is equal to the present value of the lease payments at 8%. Marshall purchased the equipment for $4,300,000.For 2011, Marshall should report interest revenue of ?

  The bottlebrush company has income from operations

The Bottlebrush Company has income from operations of $95,940, invested assets of $130,000, and sales of $533,000. Round answers to one decimal place.

  What is the macrs depreciation deduction on the automobile

trish a self employed cpa and calendar year taxpayer acquires and places in service an automobile and a personal

  Discuss limitations of consolidated financial statements

Discuss the limitations of consolidated financial statements and why dual reporting (consolidated and separate entity statements) as well as other forms of disaggregated reporting, such as SFAS No. 131, make sense.

  Lifo method and net income

Based upon the above information, a change to the LIFO method in 2008 would result in net income for 2008 of

  Comment on any significant problem or areas of cost savings

heritage furniture co. uses a standard cost system. one of thecompanys most popular products is an oak

  What are the incremental differential costs of tour

centennial tours is trying to decide which one of two tours it will introduce. the costs and revenues associated with

  Determine the dividends per share for the preferred and

sabas company has 20000 shares of 100 par 2 cumulative perferred stock and 100000 shares of 50 par common stock. the

  The term of the non-cancelable lease

The term of the non-cancelable lease is 10 years, with no renewal option. Payments of $120,000 are due on June 30 of each year.

  Yogurt machine and gross income

Only executives are permitted to buy yogurt machines at a discount. What is Sarah's adjusted basis for the yogurt machine and how much must she include in her gross income?

  Rose wilson is entering her senior year as an accounting

rose wilson is entering her senior year as an accounting major and has a number of options for her summer break. her

  The controller of ferrence company estimates the amount of

the controller of ferrence company estimates the amount of materials handling overhead cost that should be allocated to

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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