Freeman Corporation bought a piece of machinery. Selected data is presented below: Useful life 6 years Yearly net cash inflow P45,000 Salvage value - 0 - Internal rate of return 18% Cost of capital 15% 26. The discounted payback period is 31. The present value index of the machinery is 32. The net present value of the machinery is

Q: A firm bought an equipment for P56,000. Other expenses including installation amounted to P4,000.…

A: All cost that are incurred in the acquisition of asset will be capitalised. The depreciation as per…

Q: Determine, the number of years the machine must be used to obtain payback at MARR values of, 0%, 8%…

A: The most commonly used capital budgeting technique for evaluating capital expenditure proposals is…

Q: Freeman Corporation bought a piece of machinery. Selected data is presented below: • Useful life 6…

A: Annual cashflow (A) = P 45000 IRR = i = 18% Let the first cost = C MARR = r = 15% n = 6 years

Q: a) Darling Paper Container, Inc. purchased several machines at a total cost of $300,000. The…

A:

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

A: GIVEN   Emilio Corporation has the following information about the purchase of a new piece of…

Q: Freeman Corporation bought a piece of machinery. Selected data is presented below: • Useful life 6…

A: IRR = r = 18% Annual cashflow (A) = P 45000 Initial cost = C n = 6 years

Q: Angels Inc. purchases a piece of equipment for $65,000. The equipment has an expected useful life of…

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

Q: Stan Corporation bought a piece of machinery. Selected data is presented below: Useful life, 6…

A: The initial cost of the machinery will be equal to present value of future cash inflows during its…

Q: An equipment has a carrying amount of $85,000 at the year end of 31 March 20X9. Its market value is…

A: solution concept working note recoverability test if carrying value is greater than recoverable…

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 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: Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years ane a…

A: Answer) Calculation of Depreciation expense for Year 1 Depreciation expense for year 1 = Original…

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…

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

A: With reference to capital budgeting, working capital is also treated as the cash outflow at the…

Q: Win Corporation is considering the purchase of wood cutting equipment. Data on the equipment are as…

A: Under straight line depreciation, equal amount is being charged as depreciation in every year of…

Q: Following is information pertaining to an investment made in an equipment by Sun Incorporation.…

A: Capital investment analysis:  Capital investment analysis is the process of decision making,…

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: A company buys a machine for $80,000 that has an expected life of 10 years and no salvage value. The…

A: Formula: Accounting rate of return = Net Income after tax / Average investment. Division of average…

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: DT Ltd. provides you the following information: 1. Purchase price of machine Rs. 1,90,000 2.…

A: given, Purchase price of machine= Rs. 1,90,000 Installation expenses =Rs. 10,000 Useful life of…

Q: ABC Company is making a decision whether to invest in a new released equipment for their…

A: The difference between the current value of cash inflows and outflow over a period of time is known…

Q: The following data are accumulated by Geddes Company in evaluating the purchase of $197,000 of…

A: Net Present Value:Net present value is a method of balancing the current value of all future cash…

Q: The following data are accumulated by Lingle Company in evaluating the purchase of $100,300 of…

A: ·       Time value of money states that the value of money decreases over time. ·       The…

Q: The following data are accumulated by Paxton Company in evaluating the purchase of $157,200 of…

A: For any project approval for investment , first they calculate NPV  whether to go head or not If NPV…

Q: Covington Corporation purchased a vibratory finishing machine for $22,000 in year 0. The useful life…

A: The capital budgeting method uses various methods to decide whether a project should be accepted or…

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: At the end of the useful life of a piece of equipment, the asset accounts for $45,000 worth of…

A: Worth of production = $45,000 Operating cost = $25,000 Salvage Value = $15,000

Q: A company has purchased a capital asset for $21.2 million. The asset belongs to the 5-year MACRS GDS…

A:

Q: asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8000.…

A: Given: Cost of asset = P50,000 Estimate Salvage value= P8,000 Useful life of the asset =6 years…

Q: A company s considering the acquisition of a new machine that costs $429,000 and has a useful ife of…

A: Cash Flows: Year Cash Flow 0 -429,000.00 1 152,000.00 2 155,000.00 3 165,000.00 4…

Q: Quary Company is considering an investment in machinery with the following information.   Initial…

A: Solution:- a)Calculation of  the investment’s annual income and annual net cash flow as follows…

Q: Based on this information the payback period is:

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

Q: An company bought a telecommunication equipment for P160,000. Other expenses including installation…

A: Given the following information: Equipment purchase price: $160,000 Other expenses including…

Q: The NUBD Co. acquired a new machine for P160,000 which will be depreciated on a straight-line basis…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: A tool is purchased for $500,000. The expected life is 25 years.  The salvage value is $100,000.…

A: This Numerical has covered the concept of Depreciation Accounting. There are many methods of…

Q: In Year 1, Darw Inc. purchased equipment with an expected useful life of 5 years. The initial cost…

A: Answer 1)

Q: The following relates to a proposed equipment purchase: Cost $160,000 Salvage value 6,500 Estimated…

A: Computation of Annual Depreciation Expense: Annual Depreciation Expense=Cost-Salvage ValueEstimated…

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

A: Gross profit is $50,000 per year Cost of equipment is  $130,000 Salvage value at the end of the 8 th…

Q: The following data pertain to Sunlight Corp., whose management is planning to purchase an automated…

A: Net Present Value- The difference between the current value of cash inflows and withdrawals over a…

Q: A firm is considering an investment in new equipment that has the following information. Purchase…

A: Depreciation under Straight Line Method = (Purchase Cost - Salvage Value) / Useful Life Purchase…

Q: A dynamic measurement machine used by Renshaw Instruments had an annual cash flow before taxes of…

A: Net Present Value(NPV) is a capital budgeting technique that determines the viability of the…

Q: Youngblood Shipbuilding Yard just purchased $800,000 in capital equipment for Ship-repairing…

A: a. Cost (C) is $1,000,000. Salvage value (S) is $150,000. The recovery rate (RR) for year 3 is…

Q: In Year 1, Darw Inc. purchased equipment with an expected useful life of 5 years. The initial cost…

A: Company uses different methods for capital budgeting such as Internal rate of return, average rate…

Q: Dragonfly, Inc. is evaluating two possible investments in depreciable plant assets. The company uses…

A: The following computations are done in the records of Dragonfly Incorporation to evaluate the…

Q: An asset was purchased for P1,000,000.00 to be retired at the end of 15 years with salvage value of…

A: Capitalised cost refers to the expenditures incurred on fixed assets. The fixed cost is the part of…

Q: eman Corporation bought a piece of machinery. Selected data is presented below: Useful life 6 years…

A: Payback period is the no. of years required to recover the initial amount invested. Payback period =…

Q: Denver Company buys a machine for $65,000 that has an expected life of 4 years and no salvage value.…

A: Answer:   9.54%