How many years would the company need to have

Assignment Help Financial Accounting
Reference no: EM132861707

Problem - Another company is considering installing a new machine. The Machine initially costs $900,000, but the company could recoup $100,000 through an incentive from the government to purchase the machine. There will be an outlay of $100,000 at the end of years 3 and 6 for maintenance. Expected returns are $125,000 for each of the ?rst three years, and $175,000 for each year after. At the end of the machine's life, the estimated salvage value is $75,000. IRR is 9% compounded annually. How many years would the company need to have the machine to make it worth the investment?

Reference no: EM132861707

Questions Cloud

What is its projected gross margin : Variable selling & admin costs of $10,000 and breakeven sales of $500,000. What is its projected gross margin at $1,000,000 in sales
Covid-medical billing and coding processing : How remote office visits effected medical billing and coding processing the changes in payroll and benefits processing during COVID
What is the weighted average unit cost : Pharoah Company made three purchases of merchandise in the following sequence: (1) 155 units at $10, What is the weighted average unit cost
What effect does it have on the income statement : XYZ Services will receive the money in 2020. What effect (if any) does it have on the income statement and balance sheet of XYZ Services
How many years would the company need to have : IRR is 9% compounded annually. How many years would the company need to have the machine to make it worth the investment
Describe the four steps of the entrepreneurial process : Describe the four steps of the entrepreneurial process. Describe which elements are most important from an individual perspective.
About organizational design and leadership : This discussion is about organizational design and leadership, as well as global leadership issues and practices.
What was the greatest challenge you had to overcome : Now that your project has been submitted, how are you feeling? What was the greatest challenge you had to overcome?
Performance management and performance appraisal : Differentiate between Performance Management, Performance Appraisal, International Performance Management and Multinational Performance Management.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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