Solution-Find what is the equivalent annual saving from the

Find what is the equivalent annual saving from the purchase

Assignment Help Managerial Accounting

Reference no: EM132517124

Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $130,000 and sell its old low-pressure glueball, which is fully depreciated, for $22,000. The new equipment has a 10-year useful life and will save $30,000 a year in expenses. The opportunity cost of capital is 11%, and the firm's tax rate is 21%.

Question 1: What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132517124

Questions Cloud

Calculate Sub Stations return on assets : Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Calculate Sub Station's return on assets

Socrates tells the story of his divine mission : Socrates tells the story of his divine mission. What is this story? In other words, why does he tell this story, and how does it begin, develop, and conclude?

What is the cost per pen for job : What is the cost per pen for Job X24? Jetison Industries makes batches of custom novelty items for companies to give away at career fairs.

Determine the amount McCoys Fish House should record : McCoy's Fish House purchases a tract of land and an existing building for $1,000,000. Determine the amount McCoys Fish House should record

Find what is the equivalent annual saving from the purchase : What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round)

Pestle and swot analysis and matrices : Using your research findings, PESTLE and SWOT analysis and matrices from assignment 1. complete Sections 5-8 of the Marketing PlanTemplate

What will the price of the bond be five years from now : Suppose you purchase a zero-coupon bond with face value $1,000, maturing in 20 years, for $214.51. What will the price of the bond be five years from now

What is cultural relativism : How does it differ from an objective theory of ethics? What reasons are often given in support of cultural relativism? Are these good reasons?

Cyber security : You have just been hired as the Security Manager of a medium-sized Financial Services company employing 250 people in New Hampshire,

User Account

All Pages

Find what is the equivalent annual saving from the purchase

Reference no: EM132517124

Reference no: EM132517124

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