Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Carlson Manufacturing has some equipment that needs to be rebuilt or replaced. The following information has been gathered relative to this decision:
Equipment
New
Purchase cost new
$50,000
Remaining book value
$30,000
$48,000
Cost to rebuild now
$25,000
Major maintenance at the end of 3 years
$8,000
$5,000
Annual cash operating costs
$10,000
Salvage value at the end of 5 years
$3,000
$7,000
Salvage value now
$9,000
Carlson uses the total cost approach and a discount rate of 12%. Regardless of which option is chosen, rebuild or replace, at the end of five years Carlson Manufacturing plans to close its domestic manufacturing operations and to move these operations to foreign countries.
1. If the new equipment is purchased, the present value of all cash flows that occur now is:
A) $(48,000)
B) $(39,000)
C) $(41,000)
D) $(37,000)
2. If the new equipment is purchased, the present value of the annual cash operating costs associated with this alternative is:
A) $(28,840)
B) $(19,160)
C) $(14,420)
D) $(36,050)
3. If the equipment is rebuilt, the present value of all cash flows that occur now is:
A) $(55,000)
B) $(25,000)
C) $(16,000)
D) $(23,000)
bach corp. had additions to retained earnings for the year just ended of 430000. firm paid out 175000 in cash dividends
Your brother who is 6 years old, just received a trust fund that will be worth $24,000 when he is 21 years old. If the fund earns 0.11 interest compounded annually, what is the value of the fund today?
q. abc manufacturing is major producer of farm equipment. presently firm has two divisions machinery division also
A. Find the theoretical market value of the bonds using semiannual analysis. B. Do you think the bonds will sell for the price you arrived in part a? Why?
Net working capital for the PDAs will be 20 percent of sales and will occur with the timing of the cash flows for the year.
Under the GASB Statement No. 34 reporting model for governmental entities, fund financial statements include separate sets of financial statements for:
Each circuit board is sold at a price of $111.50 and involves variable costs of $81.73 per unit. What is the break-even point for Jackson.
you have 42180.53 in brokerage account and you plan to deposit an additional 5000 at the end of every futhure year
However, if the referendum fails, he believes he could sell the property for only $ 1.15 million. a. Develop a decision tree for this problem. b. What is the optimal decision according to the EMV criterion
1.in a period of rising sales utilizing past cost and expense ratios percent-of-sales method when preparing pro forma
The use of debt intensifies the firm's business risk borne by the common stockholders. As a result, shareholders of a firm with higher debt ratio would require a higher return compared to a similar firm without debt
First National agrees to act as Interstate's mortgagee, and Interstate obtains an insurance policy from Good Hands to cover the property. A fire totally destroys the warehouse.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd