Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Tablerock Corp. is interested in reviewing its method of evaluating capital expenditure proposals using the accounting rate of return method. A recent proposal involved a $100,000 investment in a machine that had an estimated useful life of five years and an estimated salvage value of $10,000.The machine was expected to increase net income (and cash flows) before depreciation expense by $28,000 per year. The criteria for approving a new investment are that it have a rate of return of 12% and a payback period of three years or less.Required:
a. Calculate the accounting rate of return on this investment for the first year.Assume straight-line depreciation. Based on this analysis, would the investment be made? Explain your answer.b. Calculate the payback period for this investment. Based on this analysis, would the investment be made? Explain your answer.c. Calculate the net present value of this investment using a cost of capital of 12%.Based on this analysis, would the investment be made? Explain your answer.d. What recommendation would you make to the management of Tablerock Corp. about evaluating capital expenditure proposals? Support your recommendation with the appropriate rationale.
Newroute Manufacturing has been using activity-based costing to determine the cost of produt X-678. One of the activities, "Inspection," ocbcurs just before the product is finished.
Use the indirect method to compute cash flow from operating activities.
Gunnison Supply provides the following information about resources:
What effect do current technology changes have on managerial accounting - The income statement and balance sheet columns of Pine Company's worksheet reflects
Myrtle is fully supported by her three children and Fred, a close friend of the family. Mark paid $4,000 toward Myrtle's support, while Nancy, Opel, and Fred paid $3,200, $ 800, and $2,000 respectively. Which individual are eligible to claim My..
asignacioacuten individual t2ai 1 cvpbep1. fixed costs are 1500000 and the contribution margin per unit is 150. what is
shellhammer company is considering the purchase of a new machine. the invoice price of the machine is 170000 freight
The company uses a 9 percent interest rate on all of its projects. Calculate the MIRR of the project using all three methods
Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2014, Trueman Corporation issued $700,000 of 20-year, 11% bonds for $647,338, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 an..
List a few of the issues and considerations businesses should have when it comes to the selection of long-term investments and how those issues impact the various financial statements.
George Marcus, a recent college graduate, has been appointed by Taylor Corporation at a salary of $54,000 per year. In anticipation of his salary, George bought a $20,000 new ski boat and will pay for it at a rate of $425 per month
The bank has an average of 7,000 special college student accounts each year. Should FirstBank continue to offer these accounts?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd