DT Ltd. provides you the following information: 1. Purchase price of machine Rs. 1,90,000 2. Installation expenses Rs. 10,000 3. Useful life of machine 5 years 4. Salvage value at the end of useful life nil 5. Tax Rate 30% 6. Cost of capital 10% 7. Cash flows before depreciation and tax Rs. 1,00,000 p.a.                Required: Calculate the Discounted Payback Period.

Q: TransITRI is a transportation company with a recent need of a new construction equipment at a first…

A: The calculation of different cashflows for different years is shown in below table:

Q: A machine costs £15,000 and its useful economic life is 5 years. After 5 years, the machine’s scrap…

A: GIVEN, cost = 15000 n=5  net cash inflow = 5000 machine scrap = 3000

Q: Krostel Company is planning to acquire a machine costing P 500,000 with a useful life of 3 years…

A: Accounting rate of return = Average Annual Income/ Average Investment Accounting rate of return = P…

Q: Harper Corporation has the following information about the purchase of a new piece of equipment:…

A: Cash flow after tax is determined by adding depreciation expense for the year to the after-tax…

Q: Baird Bros. Construction is considering the purchase of a machine at a cost of $202,000. The machine…

A: Answer a) Calculation of Net Present Value of Cash Flows Net Present Value = Present value of cash…

Q: Tony Industries plan to sell a machine in the current tax year. The cost basis presented is…

A: There is gain on the sale of assets if the sale price exceeds the book value.

Q: An equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual…

A: Sinking Fund Depreciation Method: It is possible to depreciate an asset while simultaneously earning…

Q: ABC, Inc. purchased an equipment at time=0 for $84,362. The shipping and installation costs were…

A: Calculation of Cash Flow in Year 3:The cash flow in year 3 is $64,637.16.Excel Spreadsheet:

Q: A piece of equipment was purchased for $1, 200 and depreciated on a straight-line basis to $140 over…

A: Under the straight-line method of depreciation, the fixed asset is depreciated with an equal amount…

Q: A machine can be purchased for $222,000 and used for five years, ylelding the following net Incomes.…

A: Payback period is the time taken by the project to cover its initial investment. It is the time to…

Q: A company is considering a machine acquisition. The new machine will cost $ 60.000 and the shipping…

A: Investment Cash flow:- It includes inflow and outflow of cash from the sale and purchase of…

Q: A piece of equipment costs ₱365,000 including shipping, installation and taxes. The supplier assures…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: A piece of equipment costs ₱378,000 including shipping, installation and taxes. The supplier assures…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over…

A: The payback period is calculated as the time taken to recover the initial investment made in a…

Q: NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over…

A: Initial Investment = 180,000 Useful life = N = 5 SLM Depreciation Depreciation expense = Initial…

Q: Consider the following net cash flow of a new machine whose useful life is 5 years and is 5,000 $. 1…

A: Rate of return is annual income earned on the investment. That should be sufficient to satisfy the…

Q: A machine costs rs. 22,000 and it's salvage value after its useful life of 5 years is rs. 4,000.…

A:

Q: Zulu Ltd have made an investment of R400 000 in a machine.  Further details: Expected useful life 5…

A: Here, Salvage Value is R120,000 Cost of Capital is 10% Depreciation Method is Straight Line Method…

Q: The ABC Company uses the after-tax MARR of 10% per year, and effective tax ra machine has the…

A: Depreciation as per SLM = (Initial cost - Salvage Value)/life Present Value of CFAT i.e. cash flows…

Q: A company purchases an industrial laser for $166,000. The device has a useful life of 4 years and a…

A: After tax cash flow (ATCF) = Taxable income - Tax + Depreciation

Q: a state of the art prodaction equipment that will Cost 2, 00,000 pesos. The amount of Shipping is G9…

A: Solution Given Purchase price 2000000 Shipping charge 60000 Installation cost…

Q: A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: DT Lid, provides you the following information 1.Purchase price of machine Rs. 190000 2.Installation…

A: Discounted pay back period is used in capital budgeting decision in order to identify the time…

Q: (a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5…

A: Since this is multi- part question, we are going to solve only first three parts for you. To get the…

Q: MARR is 6% per year. First cost, $ Annual cost, $ per year Revenue, S $ per year Salvage value, S…

A: Annual worth (AW) refers to the amount that remains with the form after incurring all the expenses…

Q: "he management of Nebraska Corporation is considering the purchase of a new machine costing…

A: ARR: It is that rate of return that is anticipated from an asset or any other investment in relation…

Q: Based on this information the payback period is:

A: Annual cash flow=Depreciation+Net income =(10000+5000)=$15000

Q: Donata Company purchased equipment for $45,000 in December 20x1. The equipment is expected to…

A: Solution: Additional revenue per year = $12,000 Additional cash expenses = $6,000 Depreciation for…

Q: he net investment of decision is P276,200 which includes P247,500 capitalizable cost of machine and…

A: Net Investment = P276,200 Cost of machine = P247,500 Additional net working capital = P50,000 Time…

Q: De La Salle University buys a steam generator for P250,000. The shipping and installation fees…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Troy Industries purchased a new machine 3 years ago for $80,000. It is being depreciated under MACRS…

A: Cost of new machine 3 years ago = $80,000 Recovery period = 8 years  tax rate = 40%

Q: Wajasetia Security company has received a contract to provide additional security for the outdoor…

A: i. Reference: Working Notes: Reference:

Q: If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will…

A: Book Value = Cost of Truck - Depreciation Expense

Q: A company buys a £300 computer in Year 1 and capitalizes the expenditure. Th e computer has a useful…

A: Straight line method of depreciation is the most straightforward approach that implies that the…

Q: TransITRI is a transportation company with a recent need of a new construction equipment at a first…

A: Present worth of an investment is the present value of all the cash flows for the investments, it…

Q: TransITRI is a transportation company with a recent need of a new construction equipment at a first…

A: The machine has an economic life of 7 years.The MARR is 16%.The below table shows the calculation of…

Q: TransITRI is a transportation company with a recent need of a new construction equipment at a first…

A: The machine has a economic life of 8 years.The function given for cash flow before tax can be used…

Q: Years Asset - M Asset - N Year 1 3,000 Year 2 1,000 4,000 Year 3 1,000 1,000 Year 4 1,000 2,000

A: The discounted payback period is the time in years it takes the discounted cash flows of the project…

Q: A solar panel unit has been purchased by a company for electricity back up. The solar unit costs…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: A sala set is costs P80,000. Its estimated scrap value is P5,000 after 3 years. Solve for the…

A: Sinking fund method of depreciation includes the setting aside of a fund apart from computing the…

Q: RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows:…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: The following data are accumulated by Lingle Company in evaluating the purchase of $180,000 of…

A: Calculate net present value : given purchase price of equipment =  $180,000 the required rate of…

Q: NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over…

A: Calculation of present value of cash Inflows:::: AAnnual cash flows::P40,000 Less: Depreciation…

Q: The net investment of decision is P276,200 which includes P247,500 capitalizable cost of machine and…

A: Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.