Quary Company is considering an investment in machinery with the following information. Initial investment $ 308,000 Materials, labor, and overhead (except depreciation) $ 69,300 Useful life 9 years Depreciation—Machinery 32,000 Salvage value $ 20,000 Selling, general, and administrative expenses 7,700 Expected sales per year 15,400 units Selling price per unit $ 10 (a) Compute the investment’s annual income and annual net cash flow. (b) Compute the investment’s payback period. Please also help with what I need to use to fill in the blanks on the first image. "Required A"
Quary Company is considering an investment in machinery with the following information. Initial investment $ 308,000 Materials, labor, and overhead (except depreciation) $ 69,300 Useful life 9 years Depreciation—Machinery 32,000 Salvage value $ 20,000 Selling, general, and administrative expenses 7,700 Expected sales per year 15,400 units Selling price per unit $ 10 (a) Compute the investment’s annual income and annual net cash flow. (b) Compute the investment’s payback period. Please also help with what I need to use to fill in the blanks on the first image. "Required A"
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 2E: Average rate of returncost savings Maui Fabricators Inc. is considering an investment in equipment...
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Quary Company is considering an investment in machinery with the following information.
| Initial investment | $ 308,000 | Materials, labor, and overhead (except |
$ 69,300 | |
| Useful life | 9 | years | Depreciation—Machinery | 32,000 |
| Salvage value | $ 20,000 | Selling, general, and administrative expenses | 7,700 | |
| Expected sales per year | 15,400 | units | Selling price per unit | $ 10 |
(a) Compute the investment’s annual income and annual net cash flow.
(b) Compute the investment’s payback period.
Please also help with what I need to use to fill in the blanks on the first image. "Required A"
Transcribed Image Text:Quary Company is considering an investment in machinery with the following information.
$ 308,000
9 years
$ 20,000
15,400 units
$ 69,300
32,000
7,700
$ 10
Initial investment
Materials, labor, and overhead (except depreciation)
Depreciation-Machinery
Selling, general, and administrative expenses
Selling price per unit
Useful life
Salvage value
Expected sales per year
(a) Compute the investment's annual income and annual net cash flow.
(b) Compute the investment's payback period.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the investment's annual income and annual net cash flow.
Annual Amounts
Income
Cash Flow
Expenses
Income
$
Net cash flow
2$
Transcribed Image Text:Quary Company is considering an investment in machinery with the following information.
$ 308,000
9 years
$ 20,000
15,400 units
$ 69, 300
32,000
7,700
$ 10
Initial investment
Useful life
Salvage value
Expected sales per year
Materials, labor, and overhead (except depreciation)
Depreciation-Machinery
Selling, general, and administrative expenses
Selling price per unit
(a) Compute the investment's annual income and annual net cash flow.
(b) Compute the investment's payback period.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the payback period for this investment.
Payback Period
Numerator:
Denominator:
Payback period
< Required A
Required B >
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