Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.Use the straight-line depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a car for $30,000. Company XYZ expects to use

1.Use the straight-line depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a car for $30,000. Company XYZ expects to use this car for four years and at the end of the four years they will sell the car for $5,000. How much will the car depreciate each year?

2.Use the unit-cost-of depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a machine for $150,000 on January 1, 2014. They figure the salvage value of the machine is $40,000 and the machine will produce 20,000 units during its useful life.

6.Use the sum-of-year depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a new machine for $100,000 and expects the machine will last for 10 years.

7.Use the double-declining depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a machine for $100,000. They plan on using the machine for five years and would like to sell the machine for $10,000 after the five years.

8.Company XYZ has a free cash flow of $30,000. Company XYZ estimates their cash flow will grow 10% in the first two years, 5% for the following three years. Company XYZ will have an assumed annual growth of 3% and a weight average cost of capital of 8%. What is Company XYZ's discount cash flow?

9.Company XYZ has $1,000,000 in net income, $50,000 in depreciation and $600,000 in working capital. What is their operating cash flow?

10.Company XYZ had an initial investment of $300,000 into a machine for their new project. It had a useful life of five years and salvage value of $25,000. Company XYZ incurred a yearly working capital requirement of $10,000 when they bought this machine. What is the terminal cash flow?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management Processes And Supply Chains

Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman

13th Global Edition

129240986X, 978-1292409863

Students also viewed these Accounting questions

Question

What is a multi-attribute model of consumer attitudes?

Answered: 1 week ago

Question

The concept of elasticity is important in econognics because it:

Answered: 1 week ago