User Account

All Pages

Poe company is considering the purchase of new equipment

Assignment Help Accounting Basics
Reference no: EM131011608

Poe Company is considering the purchase of new equipment costing $89,000. The projected annual cash inflows are $39,200, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.

$35,260.
$53,730.
$(35,260).
$(21,196).
$21,196.

Reference no: EM131011608

Questions Cloud

Prepare journal entries to record the machines purchase and : Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. Prepare ..
Determining the inheritance of blood types : Children inherit their blood type from their parents, with probabilities that re?ect the parents' genetic makeup. Children of Juan and Maria each have probability 1/4 of having blood type A and inherit independently of each other. Juan and Maria pl..
What is the amount of supplies expense for the accounting : The asset account, Office Supplies had a beginning balance of $6,000 during the accounting period, office supplies were purchase ,on account for $5,400 A physical count. on the last day of the accounting period. show $2,000 of office supplies on hand..
What exchange rate would the law of price hold shipping cost : The current spot exchange rate is 109.43 (in Yen). A particular commodity sells for $5,000 in the Unites Sates and 600,000 (in Yen) in Japan. Does the law of one price hold? If not explain how to profit through arbitrage. Taking the commodity prices ..
Poe company is considering the purchase of new equipment : Poe Company is considering the purchase of new equipment costing $89,000. The projected annual cash inflows are $39,200, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return ..
Problem regarding the random digits : Each entry in a table of random digits like Table B has probability 0.1 of being a 0, and digits are independent of each other. What is the probability that a group of ?ve digits from the table will contain at least one 5?
Attitudes toward drinking-behavior studies : Some of the methods in this section are approximations rather than exact probability results. We have given rules of thumb for safe use of these approximations.
What was discount rate that singer used to value cash flow : An arizona resident won $1,305,535.8 lottery, for which sherecieves 20 annual payments of 65,276.79. singer offered her a fixed payment today in exchange for one half of the next nine payments that she receives from her lottery winnings. singer offer..
Weighted average cost of capital for discount rate : It is early January 2010, and as the chief financial officer of TM Toys Inc., you are evaluating a strategic acquisition of Toy Co. Inc. (the “target”). Industry Overview: The toys-and-games industry consists of a select group of global players.The $..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Properly reflects the time value of money

Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2013, assuming that an interest rate of 10% properly reflects the time value of money in this situation.

  Tb 53 coakley beet processors inc processes sugar beets in

tb 53 coakley beet processors inc. processes sugar beets in batches. a batch of sugar beets costs 48 to buy from

  Fran traveled to san francisco during the year to do

fran traveled to san francisco during the year to do volunteer work for one week for the salvation army. she normally

  On december 31 the balance in the prepaid insurance account

on december 31 the balance in the prepaid insurance account was 4500 which is the remaining balance of a twelve-month

  Amount of bad debt expense

What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts?

  Authorized stock of a corporation

The authorized stock of a corporation: a. only reflects the initial capital needs of the company. b. is indicated in its by-laws. c. must be recorded in a formal accounting entry. d. is indicated in its charter.

  Jack green established the jackson trust by a gift in 1999

jack green established the jackson trust by a gift in 1999. the trust instrument requires that the trustee fifth-fourth

  What was the companys cash coverage ratio

The company's net income was $8,912 with a tax rate of 34%. The firm paid $3,987 in total expense with a depreciation of $4,873. What was the company's cash coverage ratio?

  What are pace-s taxable income and income tax liability

What are Pace's taxable income and income tax liability, assuming qualified production activities income is $55,000?

  Rental income of personal income taxes system

Rental income of Personal income taxes system in the US. Is it a progressive taxation system? Why or why not?

  What process would you follow to make this

What process would you follow to make this important decision? Who needs to be involved? What additional questions need to be answered to make a good decision?

  Mrjones borrows 25 000 from bank b for 10 years he makes

mr.jones borrows 25 000 from bank b for 10 years. he makes semiannual payments of 2 000. the bank receives interest on

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd