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

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Indirect labour hour calculations

In the past, TTTH Inc. allocated indirect manufacturing costs based on direct labor hours. Recently, management has decided to pilot a system of time-driven activity-based costing (TDABC) to allocate these costs. Determine the indirect labor suppor..

  Calculate the company''s working capital

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, The company's working capital is

  Briefly explaining the changes within each major cash flow

Prepare a statement of cash flows for 2013, using the indirect method. Assume that current assets (excluding cash) and current liabilities have remained the same on December 31, 2013. The cash balance on December 31, 2013 is $66,050. 2.Draft ..

  Determine debbie and elizabeth realized gain of loss

Elizabeth's property had an adjusted basis of $9000 and a fair market value of $10,500, and Elizabeth gave Debbie $4500 in cash. Determine Debbie's and Elizabeth's realized gain of loss, recognized gain or loss and the basis in their new property.

  Direct material and direct labor cost to produce cases

Hale Company makes sets of wrenches. They are trying to decide whether to continue to make the case the wrenches are sold in, or to outsource it to another company. The direct material and direct labor cost to produce the cases total $2.00 per cas..

  Calculate the predetermined overhead rate

Calculate the predetermined overhead rate or overhead allocation rate for each of the following different allocation bases

  Portion of the cost of the loan

What is the all-in-cost (i.e., the internal rate of return) of the York loan including the LIBOR rate, fixed spread and upfront fee? What portion of the cost of the loan is at risk of changing?

  What is the product contribution margin

Bill Graham and Larry Miller incorporated B&L Landscapes, Inc. on July 1, 2014. What is the product's contribution margin? What is the product's CM ratio

  Net income of financial brokers partnership

Shue withdrew $240,000 as withdrawals and contributed equipment valued at $50,000 to the partnership. What was the net income of the Financial Brokers Partnership for 2008?

  Evaluating a capital expenditure proposal

Mouser Company is evaluating a capital expenditure proposal with the following predicted cash flows

  Segregation of duties with adaptations

Segregation of Duties (SoD) and other classic internal controls such as management oversight have been adapted to consider technology. Compare/contrast the classic controls with their adaptations for technology.

  Business decisions involve aspects of risk and return

All business decisions involve aspects of risk and return.

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