Davis plumbing is considering updating its current manual

Assignment Help Accounting Basics
Reference no: EM13388969

Davis Plumbing is considering updating its current manual accounting system with a high end electronic system. While the new accounting system would save the company money, the initial purchase cost of the system continues to decline. The company's opportunity cost of capital or discount rate is 10 percent. The initial investment costs and annual savings made at different times in the future are shown below:

Year Initial Investment Savings Per Year

0 5,000 7,000

1 4,500 7,000

2 4,000 7,000

3 3,600 7,000

4 3,300 7,000

5 3,100 7,000

When should Davis replace the system to have the highest present value of the NPV?

Reference no: EM13388969

Questions Cloud

Marketing has often been defined in terms of satisfying : marketing has often been defined in terms of satisfying customersrsquo needs and wants. critics however maintain that
Create an ms powerpoint presentationin which you evaluate : create an ms powerpoint presentationin which you evaluate the current state of the process you selected in week two and
Aper-unit tax of 200 is imposed on suppliers of computers : the elasticity of demand for home computers is -2.5 the elasticity of demand for business computers is -.90 and the
Please write down a 3-5 page essay regarding malcolm : please write a 3-5 page essay about malcolm baldridge national quality award. your paper should include1.
Davis plumbing is considering updating its current manual : davis plumbing is considering updating its current manual accounting system with a high end electronic system. while
Daniels agricultural products is considering buying new : daniels agricultural products is considering buying a new farm that it plans to operate for ten years. the farm will
There are various types of organizational change the boards : there are numerous types of organizational change the boards chief executive officers ceos and other key executives
Johnson complex fabrications is metal parts manufacturing : johnson complex fabrications is a metal parts manufacturing company. it has developed a new process for producing
Examine the components of a marketing plan determine the : 1. from the e-activity imagine that you are pitching your favorite social media site to the ldquoshark tankrdquo panel

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the importance of cash discounts

What's the relationship between the acquisition and payment cycle and the inventory and warehousing cycle in the audit of a manufacturing company?

  Advantages and disadvantages of the c corporation form of do

1) What are the tax advantages and disadvantages of the C corporation form of doing business . List at least 2advantages and 2 disadvantages. Explain each item on your list with an example.

  Overall profit of reworking and selling the material

What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap?

  Consolidation working paper elimination entries

Record the journal entries on Spiniflex Pigeon's books for 2005. Record the journal entries on Waterhole's books for 2005. Record the consolidation working paper elimination entries for the year ended December 31, 2005.

  What would the stock price be just after the dividend shares

The company also declared and paid a 10% stock dividend on its common shares. When the stock dividend was declared, 1 million common shares were outstanding, and the market price of common stock was $135 per share.

  How can a firms security policies contribute and relate to

how can a firms security policies contribute and relate to the six main business objectives and give

  Components of postretirement benefit expense

The components of postretirement benefit expense are similar to the components of pension expense. How does the service cost component differ between the two expenses?

  Critically evaluate process used to formulate the strateghy

How would a Balanced Scorecard for Chadwick Inc differ from ones developed in its divisions, such as the Norwalk Pharmaceutical Division? Do you anticipate that there might be major conflicts between divisional scorecards and those of the corporation..

  Preparing a suspense account

Required: Given rectifying entries and prepares a suspense account.

  Preferred stockholders and common stockholders

If 300,000 is to be distributed as a dividend for the current yearr, what total amount will be distributed to preferred stockholders and common stockholders?

  Operating activities section of the statement of cash flows

Prepare the cash flows from Operating Activities section of the statement of cash flows, using the indirect method. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain

  Deductions for business travel

In April 2011, Dan is audited by the IRS for the year 2009. During the course of the audit, the agent discovers that Dan's deductions for business travel and entertainment are unsubstantiated

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