Determine the maximum amount of cash the dean should be

Assignment Help Financial Management
Reference no: EM132346151

Question

The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 8 percent return on the investment of funds.

Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $25,000 per year. The machine is expected to have a three-year useful life with a zero salvage value.

Use Present Value Appendix PV of $1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine.

Reference no: EM132346151

Questions Cloud

Do you agree with the heritage foundation : Justifying answer with accounting theory do you believe it is a necessary to generate income for the government? Or do you agree with the heritage foundation .
Calculate potential increase or decrease in his annual tax : Calculate the potential increase or decrease in his annual tax liability if the incorporates and operates the business through a regular corporation.
Explain how to account for a change in depreciation method : Briefly explain how to account for a change in depreciation method. Please also explain how each are used be supported with a reference.
Find when ac is a minimum : Suppose firm has a constant marginal product of labor - one additional worker adds four units of output given any initial quantity of workers.
Determine the maximum amount of cash the dean should be : The machine would add to student convenience, but the dean feels compelled to earn an 8 percent return on the investment of funds.
Market purchase of government securities : When the Fed makes an open market purchase of government securities, the quantity of money will eventually decrease by a fraction of the initial change
Attractive incentive for regular workers of a firm : Stock options are often a part of a senior executive's compensation, but not a part of the compensation for a regular worker.
Define the term operating leverage : Define the term operating leverage. What type of effect occurs when the firm uses operating leverage? The response paper should be in APA format.
Describe the basic characteristic of pure competition : Describe the basic characteristic of pure competition, monopoly, monopolistic competition, and oligopoly. Give examples of each.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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