What is the payback period on the investment

Assignment Help Accounting Basics
Reference no: EM132746533

Question: Crystal Manufacturing Company provides glassware machines for major department store retailers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of five years and the new equipment has a value of $231,000 with a five-year life. The expected additional cash inflows are $70,000 per year. What is the payback period on this investment?

Reference no: EM132746533

Questions Cloud

Describe how ld50 is measured : What is LD50? Describe how LD50 is measured and how it can be used to compare different microorganisms.
How much goodwill is reported on december : How much goodwill is reported on December 31, 2017? On September 4, 2017, Apple Inc. paid $2,000,000 to acquire all shares
Describe the molecular mechanisms : For each strategy, describe the molecular mechanisms involved as well as an example of its application
Apply an evaluation plan that demonstrates leadership : Apply an evaluation plan that demonstrates leadership, technology, critical thinking, and interpersonal skills and Apply an evaluation plan that demonstrates
What is the payback period on the investment : Crystal Manufacturing Company provides glassware machines for major department store retailers. The company has been investigating a new piece of machinery for.
When a unit has to be reworked : When a unit has to be reworked, the rework may be classified in three ways. What are those ways, and how does the accounting for each differ?
Explain diagnostic tests needed to confirm dengue infection : Describe the diagnostic tests needed to confirm Dengue infection in a patient in the acute phase of the disease.
What approach could yielded additional valuable information : What were the most compelling topics learned in this course? How did participating in discussions help your understanding of the subject matter?
What does a put-call ratio imply : Sam Will is from New Zealand and now he is interested in investing in the Australian equity market. He needs your investment advises since his major is in.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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