Hiawatha corp is considering the purchase of a new piece of

Assignment Help Accounting Basics
Reference no: EM13577872

Hiawatha Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $205,000. The equipment will have an initial cost of $966,000 and have a 6 year life. There is no salvage value for the equipment. If the hurdle rate is 8%, what is the approximate net present value? Ignore income taxes.

Reference no: EM13577872

Questions Cloud

What are the major tax pros and cons of pass-through : 1.what are the major tax pros and cons of pass-through entities versus taxable corporations?2.which business entity
Partner a has an investment account and for 2012 he has a : partner a has an investment account and for 2012 he has a realized and recognized capital gain of 40000. partner b does
Aan corporation wholesales repair products to equipment : aan corporation wholesales repair products to equipment manufacturers. on april 1 2012 daan corporation issued 8400000
Three defective electric toothbrushes were accidentally : question three defective electric toothbrushes were accidentally shipped to a drugstore by cleanbrush products along
Hiawatha corp is considering the purchase of a new piece of : hiawatha corp is considering the purchase of a new piece of equipment. the cost savings from the equipment would result
Using exhibit 6-12 as a guide compute the product margins : the ski corporation makes two types of skis-better and great. the data for the two product lines is betternbspnbsp
A set of final examination grades in a calculus course was : a set of final examination grades in a calculus course was found to be normally distributed with a mean of 70 and a
A student is taking two courses history and mathnbsp the : question a student is taking two courses history and math.nbsp the probability the student will pass the history
A random sample of 70 printers discovered that 30 of them : a random sample of 70 printers discovered that 30 of them were being used in small businesses. find the 95 confidence

Reviews

Write a Review

Accounting Basics Questions & Answers

  Percentage by the subsidiary reported net income

In the year an 80% owned subsidiary sells equipment to its parent company at a gain, the noncontrolling interest in consolidated income is calculated by multiplying the noncontrolling interest percentage by the subsidiary's reported net income:

  Income and expenses from the landscaping business

Russell (age50) and Linda (age45) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited. The business is operat..

  Performe the capital budgeting analysis

Discuss the difference between performing the capital budgeting analysis from the parent firm's perspective as opposed to the project perspective.

  Problem related to managerial accounting

Managerial accounting: a. has its primary emphasis on the future. b. is required by regulatory bodies such as the SEC. c. focuses on the organization as a whole, rather than on the organization's segments. d. Responses a, b, and c are all correct.

  How much cash was paid to employees

Wages expense for a period was $69,000. Wages payable increased during the period by $10,500. How much cash was paid to employees during the period?

  The people that a legislator spends considerable time and

1. the people that a legislator spends considerable time and effort serving are a delegates.b trustees.c constituents.d

  A company has provided the following data sales 4000 units

a company has provided the following data sales 4000 units sales price 80 per unit variable cost 50 per unit fixed cost

  Basics of sterling depreciation

The sterling trusts owns a business and generated $100,000 in depreciation deductions for the tax year. Mona is one of the income beneficiaries of the entity. Given the following information, can Mona deduct any of the sterling depreciation on her..

  Your goal is to create a two-security portfolio that will

1.over the period of 1955-2006 long-term government bonds underperformed large corporate stocks. small-company stocks

  Cmpute the roi for a company - sales-420000 operating

compute the roi for a company - sales-420000 operating assets-250000 net operating income-50000 and net plant

  Primary consideration when assessing inherent risk

Which of the following is not a primary consideration when assessing inherent risk?

  What are some non-financial performance measures what do

what are some non-financial performance measures? what do they tell us about the performance of an organization? why is

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