Metlock, Inc. is considering purchasing equipment costing $78000 with a 6-year useful life. The equipment will provide annual cost savings of $19600 and will be depreciated straight-line over its useful life with no salvage value. Metlock requires a 10% rate of return. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 6 4.623 4.486 4.355 4.231 4.111 3.784 What is the approximate profitability index associated with this equipment? O 1.25 O 0.73 O 1.06 O 1.09
Q: please step by step solution and excel form answer.
A: Detailed explanation:Excel cannot be uploaded in this platform.Situation a. Tax RateTax AmountFICA-…
Q: None
A: Step 1: Accessing the Trial Balance ReportFrom the Navigation Bar, select "Reports".Select the…
Q: A company repurchased 10,000 of its outstanding ordinary shares with par value 2$ for 6$ in…
A: First, we need to understand the transactions that have taken place. The company has repurchased…
Q: None
A: Reference:Tamplin, T. (2023, June 9). Direct Materials Price Variance | Formula, Calculation &…
Q: Pls help stepwise thanks. ..
A: Cash Received from Customers$600,000Cash paid for merchandise(375,000)Cash paid for Operating…
Q: A2
A: To determine the optimal production plan for products A, B, and C to achieve the target profit of…
Q: At December 31, 2015, Albrecht Corporation had outstanding 253,000 shares of common stock and 16,000…
A: Absolutely, I can help you calculate Albrecht's net loss per share for the year ended December 31,…
Q: It is the end of the fiscal year for Sophco. The company applies Manufacturing Overhead to its…
A: Detailed explanation: Balanceratioratio x 150,000Work in Process Inventory (1,000,000 +3,000,000…
Q: None
A: To determine the amount of the Maurer Company's net fixed assets, we need to follow these steps:…
Q: APCO Company manufactures various lines of bicycles. Because of the high volume of each line, the…
A: APCO Company manufactures bicycles using a weighted average costing system. the task involves…
Q: please step by step solution.
A: Step 1: Introduction to adjusting entriesAdjusting entries are those journal entries that are passed…
Q: None
A: To calculate the total cost of the departmental work in process inventory at the end of the period,…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: To solve this problem, we need to allocate the joint costs of producing the platters and cups based…
Q: Think and discuss any differences between the budgeting process of a company and budgeting process…
A: Both firms and governments have budgeting procedures that are essential for financial planning; yet,…
Q: Wildhorse Corporation incurred the following costs while manufacturing its product. Materials used…
A: Step 1: Beginning work in process inventory $14,700Material used in product$127,700 Labor costs of…
Q: What kind of cost are considered Manufacturing Overhead Cost?
A: Manufacturing overhead costs are the costs in a factory that you can't easily link directly to a…
Q: Question 9 contd. Additional Information to be used in the following requirements: Altec wishes to…
A: In Activity-Based Costing (ABC), the activity rate is the cost assigned to each unit of activity. It…
Q: My company uses job-order costing. At the beginning of the year, it made the following estimates:…
A: Accounting for Factory OverheadFactory overhead, also known as manufacturing overhead, refers to all…
Q: None
A: Step 1: Definition of Asset Turnover RatioThis ratio explains the contribution of assets to…
Q: D Chrome View Edit File Bookmarks History Profiles Tab Window Help bjs-Google Search x C The…
A: 1. To compute the amount of liabilities for Company E at the beginning of the year, we can use the…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Analyzing Jamate Company's Transactions (June 22nd - June 30th)Based on the changes in account…
Q: Process layouts are ideally suited for which of the following production environments? a) Job shops…
A: A process layout is a type of facility layout where the workstations or departments are arranged…
Q: JSM Ltd. sold $6,010,000 of 8% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds…
A: To calculate the issue price of the bonds, we need to use the present value (PV) formula. The PV…
Q: b) Evaluate the cash position of ITC limited for the year ending March 31, 2022, relative to March…
A: The cash flow statement of a company provides information about the company's cash inflows and…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: a kinematics problem involving a projectile launched at an angle. The problem likely asks to find…
Q: Calculate the amount of cash flow from operating activities from the following information. Cash…
A: 1)We should determine the cash flow from operating activitiesCash flow from operations is the…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Detailed explanation:Cost of goods available for sale :Beginning Inventory $ 4,962 Add Net…
Q: Terrell Company reported the following data at the end of its first year of operations on December…
A: Reference: Franklin, M., Graybeal, P., & Cooper, D. (2019, April 11). 2.3 Prepare an Income…
Q: oblem Set i Saved Help Save & Exit S Exercise 19-16 (Algo) EPS; stock dividend; nonconvertible…
A: First, we need to calculate the dividends for the preferred stock. The preferred stock has a 9%…
Q: The Long-line Machine Company is evaluating a capital expenditure proposal that requires an initial…
A: The Net Present Value (NPV) is calculated by subtracting the initial investment from the present…
Q: None
A: 1. Land Improvements: - Initial Cost: $186,000 - Accumulated Depreciation: $49,000 - Remaining…
Q: A1 please help.....
A: The Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an…
Q: On 1 June 20x1, CLM received written confirmation from a local government agency that it would…
A: On 1 October 20x1, CLM paid $10 million for the new office building. This is a capital expenditure…
Q: Week |1 2 LC% 30% 60% 3 70% 4 80% 5 6 90% 100% A new equipment was installed, and we estimate this…
A: The learning curve, also known as the experience curve, represents the improvement in efficiency of…
Q: On January 1, 2019, Dermot Company purchased 15% of the voting common stock of Horne Corp. On…
A: In the given scenario, the Dermot Company initially obtained 15% of the voting shares of Horne Corp…
Q: James Page works in a local music store where he sells guitars for $144.79 each. If he maintains a…
A: Selling price = $144.79Markup = 42.4% of the selling price The markup amount = 42.4 % of 144.79 =…
Q: None
A: The basis formula shown below is derived from the income statement (computation for cost of goods…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Explained above.
Q: None
A: Journal entry to Record the transaction DateAccount Titles and ExplanationDebitCreditJan-01Cash…
Q: None
A: Given dataLong-term debt / Total Assets = 0.37 => Long-term debt = 0.37*Total AssetsCurrent ratio…
Q: eBook Oct. 31. Declared semiannual dividends of $1.60 per share on the preferred stock and $0.13 per…
A: Part 2:Explanation:Step 1: Calculate the total number of shares outstanding before the stock…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: The establishment and maintenance of an internal control system over the company's financial…
Q: None
A: To determine the cash flow to stockholders for the year 2018 for Kerber's Tennis Shop, Inc., we need…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Lets analyze the problem Ms. Lynn purchased the annuity at the age 45 and she made annual premium…
Q: In Process Costing, before you can calculate the cost to produce a product. you must determine…
A: In process costing, to find out the cost of producing a product, you need to determine the…
Q: Please fill in this chart
A: Step 1: Cash flows from financing activities are the cash inflows or outflows from the activities…
Q: None
A: Reference:Franklin, M., Graybeal, P., & Cooper, D. (2019, February 14). 5.3 Explain and Compute…
Q: exercise can you help me with the solution? Huron Company produces a cleaning compound known as…
A: Step 1: 1) Materials price and quantity variances for the monthStandard and Actual direct materials…
Q: The Spunkmeyer Corporation started operations this month and had the following transactions: 1…
A: In this case, the transactions that affect the company's assets are:1. Owners invested $10,000 to…
Q: Page 1 of Form 941. Note: Round your final answers to 2 decimal places. Form 941 for 2023: (Rev.…
A: Part 2:Explanation: Step 1: Understand the QuestionsThe questions are related to the details…
Step by step
Solved in 2 steps
- Davis Inc. is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $14,600 and will be depreciated straight-line over its useful life with no salvage value. Cleaners requires a 10% rate of return. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 6 4.623 4.486 4.355 4.231 4.111 3.784 What is the approximate net present value of this investment?Pina Colada, Inc. is considering purchasing equipment costing $42000 with a 6-year useful life. The equipment will provide annual cost savings of $12000 and will be depreciated straight-line over its useful life with no salvage value. Pina Colada requires a 10% rate of return. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 6 4.623 4.486 4.355 4.231 4.111 3.784 What is the approximate net present value of this investment? A. $30000 B. $11832 C. $8772 D. $10260Concord, Inc. is considering purchasing equipment costing $48000 with a 6-year useful life. The equipment will provide annual cost savings of $12000 and will be depreciated straight-line over its useful life with no salvage value. Concord requires a 10% rate of return. Period 8% 6 9% 4.623 4.486 Present Value of an Annuity of 1 11% 10% 4.355 4.231 4.111 3.784 O 109 O 0.73 O 106 O 1.25 What is the approximate profitability index associated with this equipment? Save for Later O 100 12% 47 15% A Attempts: 0 of 1 used Submit Answer F10 F11 F12 Pr
- Cleaners, Inc. is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $15,705 and will be depreciated straight-line over its useful life with no salvage value. Cleaners requires a 10% rate of return. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 13% 6 4.623 4.486 4.355 4.231 4.111 3.784 What is the approximate profitability index associated with this equipment? Round your answer to 2 decimal places.Malone Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $24330. The equipment will have an initial cost of $154350 and have a 5-year life. The salvage value of the equipment is estimated to be $21260 Factors to use for n-5.1-8% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS) Future Value of an Annuity of $1 5.8666 Future Value of $1 1,4693 3.9927 0.6806 Present Value of an Annuity of $1 Present Value of $1 If the hurdle rate is 8%, what is the approximate not present value? Ignore income taxesPayback Company is considering the purchase of a copier machine for P42,825. The copier machine will be expected to be economically productive for 4 years. The salvage value at the end of 4 years is negligible. The machine is expected to provide a 15% internal rate of return. The company is subject to 40% income tax rate. The present value of an ordinary annuity of 1 for 4 periods is 2.85498. In order to realize the IRR of 15%, how much is the estimated before-tax cash inflow to be provided by the machine? A. P17,860 C. P25,000 B. P15,000 D. P35,700 Please show solution
- Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $132,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $33,000. The company's minimum desired rate of return for net present value analysis is 10%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402- 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place. % b. The cash payback period. c. The net present value. Use the above table of the present value of an annuity of $1. Round to the nearest…Bi-Coastal Railroad Inc. is considering acquiring equipment at a cost of $544,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $68,000. The company’s minimum desired rate of return for net present value analysis is 15%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, assuming the annual earnings are equal to the net cash flows less the annual depreciation expense on the equipment. If required, round your answer to one decimal place. % b. The cash payback period. years c. The net…Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $248,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $62,000. The company's minimum desired rate of return for net present value analysis is 10%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place.% b. The cash payback period. c. The net present value. Use the above table of the present value…
- Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $68,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $34,000. The company's minimum desired rate of return for net present value analysis is 12%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place. c. The net present value. Use the above table of the present value of an annuity of $1. Round to…Clyde Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $600,000 and have an 8 year life. The equipment has no salvage value. The hurdle rate is 8%. Ignore income taxes. (Present Value of Annuity for 8%: 5.7466; 12%:4.9676) - Answer the following: a. What is the accounting rate of return? b. What is the payback period? c. What is the net present value? d. What would the net present value be with a 12% hurdle rate? e. Based on the NPV calculations, in what range would the equipment's internal rate of return fall?Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $305,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $61,000. The company's minimum desired rate of return for net present value analysis is 15%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place.fill in the blank 1 % b. The cash payback period. years c. The net present value. Use the above…