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Required informatlon The following Information applies to the questions displayed below.] Project A requires a $310,000 Inltlal Investment for new machinery with a five-year life

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Required informatlon The following Information applies to the questions displayed below.] Project A requires a $310,000 Inltlal Investment for new machinery with a five-year life and a salvage value of $31,500. The company uses stralght-lne depreclation. Project A Is expected to yleld annual net Income of $28,900 per year for the next five years. Compute Project A's accounting rate of return. Accounting Rate of Return Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting rate of return Required information The following information applies to the questions displayed below. Peng Company is consldering an Investment expected to generate an average net Income after taxes of $2.400 for three years. The Investment costs $56,400 and has an estimated $7,800 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this m estment Assume ne company:uses stralght-line depreclation. (PV of $1, FV of $1. PVA of $1, and FVA of $1 (Use approprlate factor(s) from the tables provided. Negative amounts should be Indicated by a minus sign.) Cash Flow Annual cash flow Residual value Select Chart Amount x PV FactorPresent Value Net present value Required information The following information applies to the questions displayed below.] A company is consldering Investing In a new machine that requlres a cash payment of $51,849 today. The machine w generate annual cash flows of $20.483 for the next three years. What Is the Internal rate of return If the company buys this machine? (PV of $1. FV of $1.PVA of $1, and FVA of $1 (Use approprlate factor(s) from the tables provided.) Present Value Factor unt Invested Annual Net Cash Flow Interna Rate of Return Compute the payback period for each of these two separate Investments: a. A new operating system for an existing machine is expected to cost $250,000 and have a useful ife offouryers. The system ylelds an Incremental after-tax Income of $72.115 each year after deducting Its stralght-ine depreclation. The predicted salvage value of the system is $10,000. b. A machine costs $180,000, has a $13,000 salvage value, Is expected to last nine years, and will generate an after-tax Income of $39,000 per year after straight-llne depreclation. Choose Numerator: Choose Payback Period -Payback period Denominator: it a. A new operating system for an existing machine Is expected to cost $740.000 and have a useful life of six years. The system ylelds an Incremental after-tax Income of $180,000 each year after deducting its stralght-line depreclation. The predicted salvage value of the system is $24.400. b. A machine costs $490,000, has a $34,700 salvage value, Is expected to last elght years, and will generate an after-tax Income of $72.000 per year after straight-line depreclation. Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. PV of $1. FV of $1. PVA of $1, and FVA of S (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required A Required B A new operating system for an existing machine is expected to cost $740,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $24,400. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount x PV FactorPresent Value value Net present value Required A Required B> a. A new operating system for an existing machine Is expected to cost $740.000 and have a useful life of slx years. The system ylelds an Incremental after-tax Income of $180,000 each year after deducting its stralght-ine depreclation. The predicted salvage value of the system is $24,400. b. A machine costs $490,000, has a $34,700 salvage value, Is expected to last elght years, and wll generate an after-tax Income of $72000 per year after stralght-line depreclation. Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use approprlate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. A machine costs $490,000, has a $34,700 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount | x | PV Factor l = Present Value Net present value Required A RequiredB A machine costs $400.000 and is expected to yleld an after-tax net Income of $9.000 each year. Management predicts this machlne has a 8-year service lfe and a $80.000 salvage value, and It uses straight-lne depreclation. Compute this machlne's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return

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