The ABC company is planning to purchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 years with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X? O A) 3,5 OB) 4,5 OC) 3,0 OD) 4,0 OE) 2,5
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- Equipment will be purchased at a cost of P250,000. It will have no salvage value. The cash flows are expected to be: P37,000, P48,000, P65,000, P71,000, P73,000, and P53,000 over the life of the equipment. What is the payback period? Group of answer choices 3.43 years 6.00 years 5.25 years 4.40 yearsThe Lana company is planning to purchase a machine known as machine D. Machine D would cost $ 28580 and would have a useful life of 5 years with zero salvage value. The expected annual cash inflow of the machine is $ 9529. Answer:Emma Company is considering buying a machine for $206,000 with an estimated life of 15 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $20,500 each year. The cash payback on this investment is Round your answer 2 decimal places Selected Answer: 6,766.67 Correct Answer: 6.02 ± 0.05
- 1. Altoona Company is considering replacing a machine with a book value of P200,000, a remaining useful life of 4 years, and annual straight-line depreciation of P50,000. The existing machine has a current market value of P175,000. The replacement machine would cost P320,000, have a 4 year life, and save P100,000 per year in cash operating costs. If the replacement machine would be depreciated using the straight-line method and the tax rate is 40%, what would be the increase in income after taxes if the company replaces the machine?4. Determine the capitalized cost of a research laboratory that requires P5M for original construction; P100,000 at the end of every year for the first 6 years and then P120,000 each year thereafter for operating expenses, and P500,000 every 5 years for replacement of equipment with interest at 12% per annum? 5. A machine cost P8000 and an estimated life of 10 years with a salvage value of P500. What is its book value and total depreciation after 8 years using the straight line method? i 6. An engineer bought an equipment for P500,000. He spent an additional amount of P30000 for installation and other expenses. The salvage value is 10% of the first cost. If the book value at the end of 5 years will be P291,500 using the straight line method of depreciation, compute the useful life of the equipment in years.Hayden Company is considering the acquisition of a machine that costs $320,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $86,000, and annual operating income of $73,100. What is the estimated cash payback period for the machine (round to one decimal points)? Oa. 1.2 years Ob. 5.6 years Oc. 3.7 years Od. 4.4 years
- A machine can be purchased at t=0 for $20,000. The estimated life is 15 years, with an estimated salvage value of zero at that time. The average annual operating and maintenance expenses are expected to be $5,500. If MARR =2.54%, what must the average annual revenues be in order to be indifferent between purchasing the machine and doing nothing? $7,120 $3,880 $6,969 @$7,213 $7,175Heidi Company is considering the acquisition of a machine that costs $828,800. The machine is expected to have a useful life of six years, a negligible residual value, an annual net cash flow of $112,000, and annual operating income of $80,000. What is the estimated cash payback period for the machine (round to one decimal point)? a.10.4 years b.4.3 years c.7.4 years d.1.4 years Determine the average rate of return for a project that is estimated to yield total income of $411,040 over four years, cost $668,000, and has a $66,000 residual value. %3. The construction crane is badly needed by Cruz Esguerra construction for a certain project so as to shorten the time of completion of the project. The equipment cost of P1.2 M and has a life of 5 years with a salvage value of P 200, 000 at the end of its life. The machine can be bought with money borrowed at an interest rate of 20% per annum. Annual cost is P 10, 000. Determine the capitalized cost of the equipment. Draw the cashflow diagram.
- Heidi Company is considering the acquisition of a machine that costs $401,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $128,000, and annual operating income of $88,392. The estimated cash payback period for the machine is (round to one decimal point)? a.5.5 years b.4.5 years c.4.0 years d.3.1 yearsA certain power plant is considering two alternatives with regards to a hydraulic equipment which it needs. The following alternatives were considered. Equipment A Equipment B First Cost: P 120,000 P 136,000 Salvage Value: P 15,000 0 Life: 6 years 8 years Annual Maintenance: P 9,000 P 7,000 Compute the difference between the equivalent present worth of the two alternatives if interest rate is 7% compounded annually. Select one: a. P 26,410 b. P 30,108 c. P 28,312 d. P 24,895Heidi Company is considering the acquisition of a machine that costs $543,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $142,000, and annual operating income of $84,441. The estimated cash payback period for the machine is (round to one decimal point)? Oa. 5.0 years Ob. 6.4 years Oc. 3.8 years Od. 6.5 years