Solution-Determine what is the machine payback period

Determine what is the machine payback period

Assignment Help Managerial Accounting

Reference no: EM132587215

Question a) RNXD Inc. has the opportunity to market a product for 5 years under a specialty contract. The product will provide the company with net cash flows of $40,000. The investment calls for an initial working capital investment $280,000. The investment also calls for the purchase of equipment for $200,000. The machinery will have a salvage value of $45,000 at the end of the contract. RNXD Inc. is subject to a 16% discount rate. The net present value of this investment opportunity is?

Question b) A local machine shop purchased a new milling machine yesterday for $75,180 which is expected to generate annual cash savings of $12,000 for the next sixteen years after which the machine will have no salvage value. What is the machine's internal rate of return?

Question c) RNX Inc. purchased a machine for $40,000 which will save the company approximately $16,000 in even cash flows per year. What is the machine's payback period?

Reference no: EM132587215

Questions Cloud

What is Jacks adjusted basis in the house : Jack purchased a new house 3 years ago. The purchase price were the following; Purchase price $280000. What is Jacks adjusted basis in the house

Find what is the present value index of the project : What is the present value index of the project if the required rate of return is set at 10%. How to determine the present value index.

Treats individuals with anxiety : Imagine you are working for program that treats individuals with anxiety. discuss three internal threats to validity that could influence outcome of evaluation

Calculate the estimated loss on the inventory from the fire : Based on recent history, Hodge's gross profit ratio on Product Tex is 40% of net sales. Calculate the estimated loss on the inventory from the fire

Determine what is the machine payback period : Salvage value of $45,000 at the end of the contract. RNXD Inc. is subject to a 16% discount rate. The net present value of this investment opportunity is?

Department of homeland security : The Department of Homeland Security (DHS) has made a number of strides in recent years, including 2011.

Determine the revised annual depreciation expense : Determine the revised annual depreciation expense for 2019 using the straight-line method.On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine

Which product or products should sold at the split-off point : Which product or products should be sold at the split-off point and which product or products should be processed further? Show computations

Compute what is the accounting break-even level of sales : What is the NPV break-even level of sales assuming a tax rate of 21%, a 10-year project life and a discount rate of 12%? (Do not round intermediate calculation)

User Account

All Pages

Determine what is the machine payback period

Reference no: EM132587215

Reference no: EM132587215

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT