Investigating an investment in equipment

Assignment Help Accounting Basics
Reference no: EM13135187

The management of Malit Corporation is investigating an investment in equipment that would have a useful life of 9 years. The company uses a discount rate of 17% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is -$367,742. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive?

A. $62,516

B. $82,620

C. $40,860

D. $367,742

Reference no: EM13135187

Questions Cloud

Net present value of the investment : The net present value of the investment, excluding the intangible benefits, is -$326,237. To the nearest whole dollar how large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive?
Prepare an income statement for the year 2011 : The CPA firm you are working for has just taken on a new client. The firm has just learned that the new client will soon be on the cover of a well-known magazine, the firm is very concerned the work they produce is outstanding in every aspect. Tha..
Explain your educational & career goals, : Explain your educational & career goals, and describe any specific qualifications you may have for scholarship consideration
Calculate the molarity of the hcl solution : We find that 61.1 mL of an HCl solutionreacts exactly with 74.2 mL of 1.371 M KOH solution. Calculate the molarity of the HCl solution.
Investigating an investment in equipment : The management of Malit Corporation is investigating an investment in equipment that would have a useful life of 9 years. The company uses a discount rate of 17% in its capital budgeting.
Define the concepts of present value-payback method : define the concepts of present value, payback method, internal rate of return, or net present value and elaborate on your interpretation of their value as assessment tools for an accountant or operator
Compute the price elasticity of demand : Perform them following: Compute the price elasticity of demand for paint and show your calculations.
Compute the total cost of borrowing for these bonds : Prepare the journal entry to record the issuance of the bonds. Compute the total cost of borrowing for these bonds.
What is the name and formula for a compound : what is the name and formula for a compound with a composition percent of 77.7% Fe, 22.3% O and a molar mass of 71.85

Reviews

Write a Review

Accounting Basics Questions & Answers

  Buying and selling division-allocation practice

There are various steps that can be used to reconcile the use of different approaches between the buying and selling divisions

  Common stock outstanding prior to the new financing

Income before interest and taxes is expected to be $3,000,000. The company has a 30% tax rate and has 600,000 shares of common stock outstanding prior to the new financing.

  Charitable contribution deduction for current year

Richards makes cash contributions of $35,000 to charitable organizations. What is Richards Corporation's charitable contribution deduction for the current year?

  Joint cost allocation

Elsie Dairy Products Corp. buys one input, full-cream milk, and refines it in a churning process. Allocate the $31,680 joint cost to the spreadable butter and the buttermilk using the following (show work):

  Recording pension expenditures

Record pension expenditures are not always influenced by actuarial computations.

  Total cash receipts of a sales company

The remainder is uncollectible. The following are budgeted sales data: January $60,000-February $70,000-March 50,000-April 30,000 - What would April's total cash receipts be ??

  Average costs and variable costs

What problems are associated with using the average cost per unit as a performance measure? What problems are associated with using the variable cost per unit as a performance measure?

  Average cash gain or loss during a typical month

Construct a single month's cash budget with the information given. What is the average cash gain or (loss) during a typical month for Chadmark Corporation?

  Identify the problems that appear to exist in ferguson

identify the problems that appear to exist in ferguson and son manf company budgetary control system and explain how the problem are lightly to reduce the effectiveness of the system.

  Unethical behavior on the profitability of the company

What was the affect of unethical behavior on the profitability of the company?

  Negotiating with foreign suppliers

A company wants to buy $30 million in materials and services from suppliers in China, Japan, and South Korea. Discuss how the company would negotiate using the win-win model. What sort of strategies would it use?

  Which is approximate cash collections amount for qquarter

Assume Green Leaf Nursery anticipated sales of $500 in this quarter. Accounts receivable at the beginning of the quarter was $300. Assuming a collection period of 30 days, which is the approximate cash collections amount for the quarter?

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