Prepare a report for management in which you make a

Assignment Help Accounting Basics

Reference no: EM13613793

You are the general accountant for SuperComputer Systems, Inc., a typing service based in San Diego, California. The company has decided to upgrade its equipment. It currently has a widely used version of a word processing program. The company wishes to invest in more up-to-date software and to improve its printing capabilities.

Two options have emerged. Option #1 is for the company to keep its existing computer system, and upgrade its word processing program. The memory of each individual work station would be enhanced, and a larger, more efficient printer would be used. Better telecommunications equipment would allow for the electronic transmission of some documents as well.

Option #2 would be for the company to invest in an entirely different computer system. The software for this system is extremely impressive, and it comes with individual laser printers. However, the company is not well known, and the software does not connect well with well-known software. Payback and net present value information for these options follows:

	Option #1	Option #2
Initial Investment	($80,000)	($225,000)
Returns: Year 1	45,000	75,000
Year 2	25,000	75,000
Year 3	10,000	75,000
Payback	3 years	3 years
Net present value	-0-	-0-

Required:
Prepare a report for management in which you make a recommendation for one system or the other, using the information given. Explain your recommendation fully.

Reference no: EM13613793

Questions Cloud

Compute the net carrying value of the leased truck in the : custom truck builders frequently uses long-term lease contracts to finance the sale of its trucks. on november 1 2011

Discharge energy by heat transfer to a kitchen at 65f what : an inventor claims to have devised a refrigeration cycle that at steady state requires a net power of .8 hp to remove

Blue shipping can only afford to invest in one of these : blue shipping is considering the purchase of two different pieces of equipment as described belowmachine a - a machine

Saturated liquid leaves the condenser at 006 bar the : superheated steam at 120 bar and 520c leaves the steam generator of a vapor power plant and enters a turbine with an

Prepare a report for management in which you make a : you are the general accountant for supercomputer systems inc. a typing service based in san diego california. the

Calculate the specific entropy change for each process and : air within a gas-piston assembly and initially at stp 1atm 300k undergoes a thermodynamic cycle consisting of the

A r-12 plant is to develop 5 tons of refrigeration the : a r-12 plant is to develop 5 tons of refrigeration. the condenser and evaporator temperature are to be 40c and -10 c

The equipment will have no salvage value at the end of its : magenta company is considering two new projects each requiring an equipment investment of 90000. each project will last

Consider random sample from a populaion x that is : consider random sample from a populaion x that is exponentialhy distributed with parameter y. fxyye-yx for xgt0a

User Account

All Pages