XYZ Company is looking to invest in some new machinery to replace its current malfunctioning one. The new machine, which costs P420,000, would increase annual revenue by P200,000 and annual cash expenses by P50,000. The machine is estimated to have a useful life of 12 years and P30,000 salvage value.  A. Payback period in years B. Payback period reciprocal C. Accounting rate of return on average investment.

Q: Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the…

A: Discount factor = Initial investment / annual cash flows = $185,000/40,536 = 4.5638

Q: Edward Company's required rate of return is 15%. The company can purchase a new machine at a cost of…

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

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A: Present worth = Future value / (1+r)^n

Q: What is the payback period on this equipment?

A: Payback Period: The period in which the cost of the project is recovered is called the payback…

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A: Calculation of Payback Period= Initial Investment / Annual Cash Inflow= P1,200,000 / P220,000= 5.455…

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Q: how would i find the payback period

A:

Q: Cullumber Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the…

A:

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A: The return on investment is a comparable tool that is used to measure the particular investment and…

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A: ai) Working note salvage value of old machine: Depreciation = Cost of asset / Life Depreciation =…

Q: John Walker Company is planning to buy a new machine costing Php2,000,000 with a useful life of five…

A: 1) Payback period = Initial investment                                   -------------------…

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Q: compute the rate of return.

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A: Cost of the building additional manufacturing plant is $1,230,000 Loan to the company is equal to…

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A: Payback period refers to the time taken by the firm to receive the money invested in a project or a…

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A:

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A: GIVEN   . A firm is considering purchasing equipment that will reduce costs by P40,000. The…

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

Q: XYZ Company is looking to invest in some new machinery to replace its current malfunctioning one.…

A: Answer A) Calculation of Payback period Payback period = Initial investment in Machine/ (Annual…

Q: What is the internal rate of return on this investment?

A: Rate of return of a company implies the amount of money that is being returned after investing in an…

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A: Explanation of Concept:- I) NPV Method This is the concept related to discounted cash flow.  In this…

Q: The firm’s is considering an investment in some additional equipment. The equipment has a net cost…

A:

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A: a1. Calculate the initial outlay as follows: Therefore, the initial outlay is RM354,400.…

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A: Cash Inflow :— Cash Inflow means Cash which is Generated from the Operation of the Business.  Cash…

Q: Evaluate each machine, using the following methods:Accounting rate of return

A: The first question is answered for you. Please resubmit specifying the question number you want…

Q: This question is based on the following information: Sphinx Company is planning to invest in a…

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A: Initial cost (C) = ₱600000 Annual cash inflow (A) = ₱128000

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A: Payback period is the amount of time required to recover the initial investment. In Conventionally…

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.