User Account

All Pages

What is the payback period for this investment

Assignment Help Managerial Accounting
Reference no: EM132746040

Question - Assume that a company buys a new machine for $220,000 that has a useful life of five years and a $20,000 salvage value. The new machine will replace an old machine that can be sold for a salvage value of $10,000. The machine will generate incremental contribution margin of $42,000 per year. The only fixed expense associated with the new machine is its annual depreciation of $40,000 per year. What is the payback period for this investment?

a. 11.0 years

b. 5.0 years

c. 12.0 years

d. 5.167 years

Reference no: EM132746040

Questions Cloud

Are all three types of unemployment undesirable : What are the three types of unemployment? Unemployment is seen by some as undesirable. Are all three types of unemployment undesirable?
Prepare a multi-step income statement : Prepare a multi-step income statement for Mann Co. using the above information. The response must be typed, double spaced.
Which the adjusted trial balance shows : Which the adjusted trial balance shows? amounts ready for the financial statements. / assets, liabilities, and owner's equity only.
Contribute to port security planning : Describe the components that contribute to port security planning. Discuss the significance and purpose of the Secure Freight Initiative?
What is the payback period for this investment : The only fixed expense associated with the new machine is its annual depreciation of $40,000 per year. What is the payback period for this investment
Which type of account should have in records : Assume you prepay Fitness First for a package of eight physical training sessions. Which type of account should you have in your records?
What should fitness first report on its income statement : What should Fitness First report on its income statement? Fitness First collects the $540 in advance and will provide the training later.
Description of hazmat : Describe the state you currently reside (VIRGINIA) and describe some materials that are indicative of your state and their related information.
What is the present value of the annuity : Question - What is the present value of the following annuity - $2,627 every half year at the end of the period for the next 4 years

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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