Compute the payback period of the machine

Assignment Help Managerial Accounting
Reference no: EM132875241

Problem - Jalur Bhd is considering purchasing a machine that would cost RM403,200 and has useful life of 9 years. The machine would reduce cash operating costs by RM74,667 per year. The machine would have a salvage value of RM60,480 at the end of the project. Ignore taxation in this problem.

Required -

i) Compute the payback period of the machine.

ii) Compute the simple rate of return of the machine.

iii) Disc0uss TWO (2) reasons why depreciation is not deducted in computing the present value of a project.

Reference no: EM132875241

Questions Cloud

Prepare the necessary journal entry : Prepare the necessary journal entry assuming that Novak does use a valuation allowance account
Product SuperU from UK to Indian market : Requirement is to launch a Product SuperU from UK to Indian market. Need a business plan that includes following points and requirement is 1000 words
Why does human resources exist in an organization : As the Human Resources executive for your company, your colleagues and superiors will ask you from time to time to present HR-related arguments for or against a
Future developmental activities for the new cashier : 1. Explanation of why training and onboarding is important, support with outside resources
Compute the payback period of the machine : The machine would have a salvage value of RM60,480 at the end of the project. Compute the payback period of the machine
What does it mean to be culturally competent : 1. Which of these examples do you relate to and why? Which are hard for you to understand? For those you do not understand
What are the key drivers of global hrm integration : Are global integration and local responsiveness useful concepts when it comes to the design and export of an HRM practice?
Calculate the cost of ending inventory : Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods
Describe mandated and non-mandated benefits : Describe the basic issues involved in developing a compensation and benefit strategy.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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