Question
Quik Cleaners has been considering the purchase of an industrial dry-cleaning machine. Use the following information to help Quik Cleaners make its decision. Purchase Price
Quik Cleaners has been considering the purchase of an industrial dry-cleaning machine. Use the following information to help Quik Cleaners make its decision.
Purchase Price $ 90,000 Salvage value $6,000
Useful Life 6 years Rate of Return on Investment 8%
Annual Net Income $5,500 Depreciation Method: Straight-line
a. What is the Net Present Value for the dry-cleaning machine's capital budget project?
b. What is the Internal Rate of Return as a % for the dry-cleaning machine project?
c. What is the Cash Payback in years for the dry-cleaning machine's capital budget project?
d. What is the Accrual Accounting Rate of Return as a % for the dry-cleaning machine?
e. What is your overall suggestion to Quik Cleaners based on purchasing the dry-cleaning machine?
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Key Issues In Audit Reports Spanish Stock Exchange Key Issues In The Audit Reports Of Listed Financial Services Companies In Spain
Authors: Gaston De Jesus Rodríguez Milián
1st Edition
6205696061, 978-6205696064
