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Can anyone help me answer the question(s) for each requirement mentioned above with correct answers, please? Can you all show me the step by step
Can anyone help me answer the question(s) for each requirement mentioned above with correct answers, please? Can you all show me the step by step work in order to compute the all the correct answers to each questions and/or section of each requirement, please?
E21-24 (similar to), Techno Labs, a taxpaying entity, estimates that it can save $29,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testing machine at a cost of $115.000. No terminal disposal value is expected. Techno Labs required rate of return is 10%. Assume all cash flows occur at year-end except for initial investment amounts. Techno Labs uses straight-line depreciation. The income tax rate is 38% for all transactions that affect income taxes. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements 0 Requirements a. c. 1. Calculate the following for the special-purpose eye-testing machine: Net present value b. Payback period Internal rate of return d. Accrual accounting rate of return based on net initial investment Accrual accounting rate of return based on average investment 2. How would your computations in requirement 1 be affected if the special-purpose machine had a $11,000 terminal disposal value at the end of 8 years? Assume depreciation deductions are based on the $115,000 purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations. eStep by Step Solution
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