The city of walford is considering the purchase of new road

Assignment Help Cost Accounting
Reference no: EM13370645

The CIty of Walford is considering the purchase of new road repair equipment costing $40,000 to achieve cash savings of $8,000 per year in operating costs. The predictable useful life is 10 years, with no terminal value. The city's minimum expected return is useful life is 10 years, with no terminal value. The city's minimum expected return is 14%.

a. Find what is the net present value of this investment?
b. Evaluate the internal rate of return?
c. What is the accounting rate of return based on the initial investment?
d. Find the payback period?

Reference no: EM13370645

Questions Cloud

Explain the purpose of a flexible budget suppose a manager : explain the purpose of a flexible budget. suppose a manager claims flexible budgets are useful because costs are
Matt king sells a rental house on 1st january 2012 and : matt king sells a rental house on 1st january 2012 and receives 130000 cash and a note for 55000 at 10 percent
Evaluate the gain on the sale but difficulty figuring out : evaluate the gain on the sale but difficulty figuring out the nature of the gain. can somebody help me out?in 2012 paul
Fielder company obtained land by issuing 2000 shares of its : fielder company obtained land by issuing 2000 shares of its 10 par value ordinary shares. the land was recently
The city of walford is considering the purchase of new road : the city of walford is considering the purchase of new road repair equipment costing 40000 to achieve cash savings of
Ulmer company is considering the subsequent alternative : ulmer company is considering the subsequent alternative financing plansplan 1 plan 2issue 8 bonds at face value 2000000
1 classify each of the subsequent events as either a : 1. classify each of the subsequent events as either a revenue expense or neither. you should also describe why it is
Access the financial statements from the most current : access the financial statements from the most current annual report of a foreign company and a domestic company with
I need help calculating the subsequent problem on 1st july : i need help calculating the subsequent problem on 1st july 2012 ted age 73 and single sells his personal residence of

Reviews

Write a Review

Cost Accounting Questions & Answers

  A partnership began its first year of operations with the

a partnership began its first year of operations with the subsequent capital balancesyoung capital 143000eaton capital

  Explain activity-based management

Evaluate how the company you selected could best allocate costs to divisions, plants, departments, contracts, and / or products. Describe your rationale.

  Evaluate the expected contribution margin ratio

Evaluate the expected contribution margin ratio and round to the nearest whole percent, find the break-even sales in units and prepare a cost-volume-profit chart on your own paper. What is break-even sales

  Questionluke valued and sold at 210000 his original basis

questionluke valued and sold at 210000. his original basis in the land was 180000.for the land luke received 60000 in

  Evaluate net income and ratios

Evaluate net income and ratios

  Prepare the trading and profit and loss account

Prepare the Trading and Profit and Loss Account and Balance Sheetfrom the above information.

  Compute the number of units in the ending inventory

Prepare an income statement for the year ended December 31, 20X6, by using direct costing -Compute the number of units in the ending inventory.

  Lotus fixtures inc manufactures steel fittings each fitting

lotus fixtures inc manufactures steel fittings. each fitting needs both steel and an alloy that allows the fitting to

  Calculate how much is the cost per machine

Alpine Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2014 totaled $20,000 of materials, $8,000 of direct labor costs, and $8,000 of manufacturing overhead applied.

  Evaluate the annual depreciation on the new equipment

Evaluate the annual depreciation on the new equipment that could be provided for the fiscal year beginning 1 st June, 2014.

  Question 1richard traveled from new orleans to new york for

question 1richard traveled from new orleans to new york for both vacation and business. he spent 4 days conducting

  What arguments can be raised to support the politicization

Indicating how the CAP, the APB, and the FASB operated or operate. Cite specific developments that tend to support your answer.

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