Need-Based Accounting Corp. has just purchased 10 photocopiers for a total cost of $500,000. The CCA rate for these photocopiers is 20%. The company plans to use these photocopiers for 10 years. By the end of the 10th year, the company expects to move into new imaging system that will no longer require the photocopiers, and the asset pool will then be closed. If the company can sell the photocopiers for $50,000 in 10 years’ time, what amount of terminal loss/CCA recapture can be claimed after the photocopiers have been sold? Assume that half-year rule applies.   Please show all calculation steps:

Q: The production department of Y Company is planning to purchase a new machine to improve product…

A: Decision-making process: Decision making can be defined as the process of making choices through the…

Q: RightPrice Investor., is considering the purchase of a $400,000 computer with an economic life of…

A: For evaluating whether the Computer/ Machine is worth it or not we should check the Net present…

Q: The XYZ company is thinking about upgrading their 5-year-old machine with a new one. The machine was…

A: Particulars Amount ($) Cost of new machine 60,000 Salvage value of old machine (15,000) Net…

Q: Four years ago, a firm purchased an industrial batch oven for $23,000. The oven had an estimated…

A: Computation:

Q: Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's…

A: Net Present Value is the sum of the present value of all the cash flows. It is calculated in the…

Q: A company is considering to buy a new machine for the production of its product. Currently the…

A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: TJ & Parents Inc. has recently decided to go ahead with a new operating system for their business.…

A: The question is based on the concept of capital budgeting for taking lease or buying decision.…

Q: The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $45,000. It had…

A: NPV or net present value is defined as the sum of the PV of all future cash inflows minus the sum of…

Q: Mwasalat Company wants to renovate one of its existing buses at cost of OMR 200,000 and the Company…

A: a. People’s response to the new bus services in Muscat has been very positive. Passengers are very…

Q: Hayden Inc. has a number of copiers that were bought four years ago for $26,000. Currently…

A:

Q: An £80,000 machine to manufacture recycled paper was purchased by the XYZ company two years ago. The…

A: To determine the best time, we have to compute the annual worth of the machine for each year,and…

Q: The Everly Equipment Company’s flange-lipping machine was purchased 5 years ago for $55,000. It had…

A: Net present value refers to the value of an asset present today based on the future stream of…

Q: Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The…

A: Net present value: It is the difference between the present value of cash inflow and the present…

Q: The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $40,000. It had…

A: Amount of the initial cash flow at Year 0. The incremental net cash flows that will occur at the…

Q: The Ajax Corporation has an overhead crane that has an estimated remaining life of 10 years. The…

A: If we replace the crane now then cashflows will be, At time 0, Sale of old crane…

Q: Cisco Systems is purchasing a new bar code–scanning device for its servicecenter in San Francisco.…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: Acme-Denver Corporation is considering the replacement of an old, relatively inefficient…

A: Replacement decisions are part of capital budgeting where an old asset is replaced and with a new…

Q: The Zhang Equipment Company’s machine was purchased 5 years ago for $55,000. It had an expected life…

A: We have to use Macrs 5 years depreciation table to calculate depreciation.

Q: The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $90,000. It had…

A: Initial cash outflow for the particular project is cost of investment, initial net working capital…

Q: The production department of Y Company is planning to purchase a new machine to improve product…

A:

Q: The Zhang Equipment Company’s machine was purchased 5 years ago for $55,000. It had an expected life…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…

A: Net present value method: Net present value method is the method which is used to compare the…

Q: K&G Chemical Company has just received a special subcontracting job from one of its clients.…

A: Computation of after tax Cash flows in actual dollars and ROR on this investment on real basis is…

Q: A company is currently producing chemical compounds by a process installed 10 years ago at a cost of…

A: The annual cost (AC) of the defender can be calculated as follows. The calculated value shows the…

Q: Hayden Inc. has a number of copiers that were bought four years ago for $29,000. Currently…

A: Calculation of Current Copier Net Cash Flows: Year Working Net Cash Flow (A) Present Value Factor…

Q: Kowloon Company’s plant produces door and window systems for sale to large construction companies.…

A: Required:Compute the NPVExplain non-financial considerations in the purchase decision.

Q: Hayden Inc. has a number of copiers that were bought four years ago for $25,000. Currently…

A: After tax salvage value After tax salvage value is calculated as shown below.         After tax…

Q: Special Instrument company is considering replacing its machine with a new model that sells for…

A: A project could be accepted if its net present value (NPV) is positive. A positive NPV refers that,…

Q: The Ajax Corporation has an overhead crane that has an estimated remaining life of 8 years. The…

A: The company should replace the old crane because AW new < AW Def

Q: Yummy Food is expanding its business and wants to open a new facility to make frozen lasagna, which…

A: Lease payment is the rentals to be paid by the lessee for using the asset of the lesser for certain…

Q: As a result of improvements in product engineering, United Automation is able to sell one of its two…

A: In order to Select which machine United Automation should sell, we need to calculate the Equivalent…

Q: Bilk.com, an online retailing company, proposes to spend $50 million on servers and other computer…

A: given, year one sales = $30 millionyear one cost = $21 millioncost of machine = $50 millionlife =…

Q: The production department of Y Company is planning to purchase a new machine to improve product…

A: If company decides to buy the machine then the yearly cost would be £4,500 (£4,200+£300) and initial…

Q: Rolston Music Company is considering the sale of a new sound board used in recording studios. The…

A: Computation:

Q: you buy the new machine? Use Annual Worth method

A:

Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…

A: Present value is the current value of a future amount (sum of money). It also can be cash flows with…

Q: The production department of a Company is planning to purchase a new machine to improve product…

A: Definition:   Decision making process: Decision making can be defined as the process of making…

Q: National Chemicals has an automatic chemical mixer that it has been using for the past 4 years. The…

A: Scrapping old mixer and purchase of larger mixer Cash flow at year 0= initial investment in larger…

Q: A machine was purchased 5 years ago for $12,000. At that time, its estimated life was 10 years with…

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Q: An assembly operation at a software company currently requires $100,000 per year in labor costs. A…

A: IRR method provides a benchmark return for equating future worth and present worth.

Q: Yummy Food is expanding its business and wants to open a new facility to make frozen lasagna, which…

A: Concept Break even lease rental is rental at which lessee is indifferent to choice between lease…

Q: Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's…

A: Total cost of the machine = $200000+$28000 = $228,000 Depreciation on the machine = $228000 / 3 =…

Q: The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $40,000. It had…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: Lumberjack Power, operator of a nuclear power plant, is planning to replace its current equipment…

A:

Q: Sampson Corporation is contemplating the purchase of a new high-speed widget grinder to replace the…

A: Hey, since there are multiple subparts questions posted, we will answer first three question. If you…

Q: ssuming a 20% tax rate, calculete the initial investment associated with the replacement project.

A:

Q: ntana Rey is considering the purchase of equipment for Business Solutions that would allow the…

A: Solution Given Cost of equipment (initial investment) 280000 Life 5 years Net income…

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.