Determine the approximate internal rate of return

Assignment Help Accounting Basics
Reference no: EM132102957

Question - BSU Inc. wants to purchase a new machine for $35,600, excluding $1,400 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,200, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $8,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value.

Determine the approximate internal rate of return. (Round answer to 0 decimal places, e.g. 10.)

Reference no: EM132102957

Questions Cloud

Summary statistics for the mutual funds : Summary statistics for the mutual funds and of the Fama French factors (matrix of correlation and everything) - Plot of the evolution of the factors over time
What do you learn while comparing companies ethical codes : What do you learn while comparing companies ethical codes?
Discuss about the cultural competence continuum : After you complete the analysis, in 250-500 words describe where you think the text falls on the Cultural Competence Continuum and why.
What are your reasons for supporting the point of view : Should companies market to children? If so, what are your reasons for supporting this point of view? If not, then what is the basis for your opinion?
Determine the approximate internal rate of return : BSU Inc. wants to purchase a new machine for $35,600, excluding $1,400 of installation costs. Determine the approximate internal rate of return
Develop a health organization disaster planning strategy : Develop a Health Organization Disaster Planning and Response Strategy that links federal, state, and local agency authorities.
Evaluate the coffee spill lawsuit : Evaluate the coffee spill lawsuit. Determine what type of actions the company could make to meet ethical obligations.
Define how will ports accommodate the increase in cargo : As world trade continues to increase due to supply and demand, how will ports accommodate this increase in cargo? What are the issues facing ports.
Calculate the deferred tax effect due to the depreciation : P & P Products erroneously recorded the computers as equipment expense. Calculate the deferred tax effect due to the depreciation of equipment

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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