Which is the payback period for this project

Assignment Help Accounting Basics

Reference no: EM133901436

Problem

Peggy's Diner Corp. is considering major improvements. The initial investment will be $950,000 for new equipment that qualifies for a 20% CCA rate and has a useful life of five years, with no salvage value at the end of this period. New revenues are expected to be $600,000 annually with related costs equal to 45% of sales. Get the instant assignment help. The company's income tax rate is 15%. Which is the payback period for this project?

Reference no: EM133901436

Questions Cloud

How much is the net present value for replacement project : Jaga Manufacturing Corp. is currently considering the replacement. How much is the net present value (NPV) for this replacement project, to the nearest $100?

What are these objectives for and how does the smart concept : Managerial objectives are essential. What are these objectives for and how does the SMART concept help the process

Which is the internal rate of return for this investment : The company pays income tax at 27%. CCA and salvage value can be ignored. Which is the internal rate of return (IRR) for this investment?

Do you have thoughts about what was lost : For each module: Start a thread of 3 sentences and Respond to 3 threads 3 sentences each. Do you have thoughts about what was lost? How does Chicana

Which is the payback period for this project : New revenues are expected to be $600,000 annually with related costs equal to 45% of sales. Which is the payback period for this project

Discuss how using kpi milestones could also be used : Discuss how using KPI milestones could also be used by business analysts as a communication tool during the evaluation stage. Why are strong communication skill

Discuss two difficulties that may arise : Discuss two difficulties that may arise when analyzing multiple goals. Explain why a healthcare administrator might perform what-if analysis

Which is the value of land and building using capitalization : The appropriate pre-tax capitalization rate is 8%. Which is the value of the land and building using the capitalization of net operating income approach?

Prepare adjusting entry to record any necessary fair value : On June 30, 2022, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.

User Account

All Pages