Calculate the payback period and the accounting rate

Assignment Help Accounting Basics
Reference no: EM131798745

Lakeside, Inc., is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $5,000 per month. The new equipment will have a five-year life and cost $210,000, with an estimated salvage value of $30,000. Lakeside's cost of capital is 9%.

Required:

Calculate the payback period and the accounting rate of return for the new production equipment. (Round your answers to 2 decimal places.)

Reference no: EM131798745

Questions Cloud

Calculate the annual net cash flow required from the scanner : Assuming a constant cash flow every year, calculate the annual net cash flow required from the scanner
How much will the account be worth at thr given time : For the last 19 years, Mary has been depositing $500 in her savings account , which has earned 5% per year. How much will this account be worth at that time?
Values of the explanatory variable : a. Graph the residualse against the values of the explanatory variable x and look for any discernible pattern.
Find the predicted average life span : Life span With data for selected years from 1920 to 2007, the life span of individuals in the United States can be modeled.
Calculate the payback period and the accounting rate : Calculate the payback period and the accounting rate of return for the new production equipment
Suggest a simple way to reformulate the model : Consider the results of a survey where students were asked about their GPA and also to break down their typical 24-hour day into study, leisure.
What is the total cost of producing the good : Cost (a) If the marginal cost for x units of a good is (MC)? = v(x2 + 9) (dollars per unit) and if the fixed cost is $300, what is the total cost function?
Find the company degree of operating leverage : QUESTION 3 - Eneliko Company installs home theater systems. Compute the company's degree of operating leverage
How much of the social security is subject to tax : They received $23,000 of social security benefits during the year. How much of the social security is subject to tax

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compare the histogram to the boxplot

(a) Produce a histogram of these data. Describe and interpret the histogram. (b) Compare the histogram to the boxplot. What does the histogram tell you that the boxplot does not, and vice versa?

  What will be the impact on profit

If $15 000 of fixed costs allocated to Painted rocking chairs are avoidable $ company drops Painted rockers from its product line what will the impact on profit

  Cramden talent agency inc sales budget for november and

cramden talent agency inc. sales budget for november and december 2012 number fee total of per performance band and

  What is the capitalized cost of each of ogdens land

What is the capitalized cost of each of Ogden's land. land improvements. and building and Prepare a schedule of depreciation expense per year for the van under the three depreciation methods.

  Proposal for an erp system

"Response to Request - For - Proposal (RFP) for an ERP System". Aim: This team based assignment is designed to give you the opportunity to learn about ERP systems and to make decisions based on your investigation

  A company manufactures two products x and y the overhead

a company manufactures two products x and y. the overhead costs of 84000 have been traced into three cost pools that

  Employer received a pier report from the cra

In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the organization who:

  Assume that apple has received a special order from a

assume that apple has received a special order from a retailer for 1000 specially outfitted imacs. this is a one-time

  What interest rate is mark paying

Mark Twain's VISA balance is $1,124.40. He may pay it off in 18 equal end-of-month payments of $75 each. What interest rate is Mark paying?

  What are computer literacy and information systems literacy

What are computer literacy and information systems literacy? Why are they important?

  Compute total net income and total corporate tax bills

If Kraftstoff was attempting to choose between a 40% and 60% payout rate to stockholders, what arguments and values would management use in order to convince.

  In a factory components a and b are weekly used as follows

in a factory components a and b are weekly used as follows normal usage - 150units maximum usage - 225nits minimum

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