X company is considering replacing one of its machines in

Assignment Help Accounting Basics
Reference no: EM13567425

X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $62,000 per year; operating costs with the new machine are expected to be $43,000 per year. The new machine will cost $67,000 and will last for 6 years, at which time it can be sold for $1,000. The current machine will also last for 6 more years but will not be worth anything at that time. It's currently worth $5,000. Assuming a discount rate of 7%, what is the incremental net present value of replacing the current machine with the new machine?

Reference no: EM13567425

Questions Cloud

Assume that the following information was available for guy : assume that the following information was available for guy brown company. how would maria teresa vazquez and the other
Certain industries are subject to peculiar financing and : certain industries are subject to peculiar financing and operating conditions calling for special consideration in
Which of the businesses is most likely to use process : which of the businesses is most likely to use process costing? answer chemical plant architectural firm dentists office
If she gets an mba her salary will be a constant 100000 per : vivian has just graduated from the university of michigan with a bba and must decide whether to start working now or to
X company is considering replacing one of its machines in : x company is considering replacing one of its machines in order to save operating costs. operating costs with the
The rate on 6-month t-bills is 2 and the return on the : atlas corporation wishes to estimate its cost of retained earnings. the firms beta is 1.3. the rate on 6-month t-bills
Laudermilk produces dairy equipment most of its jobs have a : laudermilk produces dairy equipment. most of its jobs have a number of units per job. the company has two different
Clothier inc has a target capital structure of 40 debt and : clothier inc. has a target capital structure of 40 debt and 60 common equity and has a 40 marginal tax rate. if
Write a three to four 3-4 page paper on the relationship : political parties and the electoral processwrite a three to four 3-4 page paper on the relationship between political

Reviews

Write a Review

Accounting Basics Questions & Answers

  What controls should an organization

What controls should an organization like Tyco implement to ensure that such transactions do not take place in the future?

  Show the before-and-after effects of each option

President Joan Elbert is considering either a 10% stock dividend or a 2-for-1 stock split. She asks you to show the before-and-after effects of each option on retained earnings and total stockholders' equity.

  Explain accrual accounting why do generally accepted

explain accrual accounting? why do generally accepted accounting principles require accrual accounting? what is the

  Started in process 9200 units completed and on hand

started in process 9200 units completed and on hand 700units in process at end of period 1000 units complete as

  Financial statements of ansbro corporation follow cash

financial statements of ansbro corporation follow cash dividends were 14. the company did not dispose of any property

  Job-order costing system

In a job-order costing system, direct labor costs usually are recorded initially with a debit to:

  Determining the amount of the adjustment

The balance in the prepaid insurance account, before adjustment at the end of the year, is $11,500. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:

  Northwick company dividend revenue

The following January, Shaver announced a $100,000 net income for 2011 and declared a cash dividend of $.50 per share on its 100,000 shares of outstanding common stock. The Northwick Company dividend revenue from Shaver Corp. in January 2011 would..

  Impact on the balance of accounts receivable

What would be the impact on the balance of accounts receivable if the firm initiates a more aggressive collection policy and is able to reduce the average payment period to 60 days for those customers not taking the cash discount?

  Budgeted direct labor cost per unit

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of $14.50 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

  Journalize the entry to record the accrual of payroll taxes

Calculate the employer's payroll taxes, using the following rates: state unemployment and journalize the entry to record the accrual of payroll taxes.

  Describe the four perspectives of the balanced scorecard

Assume the CFO of your organization approaches you to ask your advice about implementing the Balanced Scorecard at your organization.

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