Assume that a company purchased a new machine for $26,000 that has no salvage value. The machine is expected to save the company $6,000 a year in cash operating costs for seven years. The company also expects the machine to provide annual intangible benefits that are difficult to quantify. Assuming the company’s hurdle rate is 24%, the minimum value of the intangible benefits that would be required to make this investment acceptable is closest to:

Q: Thornton Manufacturing Company has an opportunity to purchase some technologically advanced…

A: The IRR of a project refers to the measure of the project's profitability calculated by finding the…

Q: Can you please check my work

A: Accounting rate of return is equal to net income divided by average investment.

Q: The NPV of the replacement is $        ?

A: Net present value is the difference of discounted cash inflows and outflows.

Q: A company planned to invest $150,000 to add some equipments in it’s production line. This new…

A: Under MACRS, assets are assigned to a specific asset class with a designated recovery period,…

Q: A company planned to invest $200,000 to add some equipments in it's production line. This new…

A: Net Fixed Assets is the residual value of the fixed asset. If the value obtained from it is low then…

Q: and the minimum acceptable rate of return is 7% percent. Calculate the net present value of this…

A: The net present value is used to contrast the present value of cash inflows to outflows in order to…

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

A: IRR is a rate at which the present value of all cash inflows is almost equal to the initial…

Q: project’s annual expected net cash flows

A: Annual expected net cash flows = Net income after tax + Non cash expenses (Depreciation,…

Q: A management company is considering purchasing a $27,000 machine that would reduce operating costs…

A: Solution: -1 Calculation of the net present value of the investment of the machine.

Q: A company is considering replacing an existing machine with a more modern one. The tax rate is 40%.…

A: Let's proceed with the calculations.The Net Present Value (NPV) of replacing the old machine with…

Q: B2B Company is considering the purchase of equipment that would allow the company to add a new…

A: The Net Present Value (NPV) is a financial metric used to evaluate an investment's profitability. It…

Q: $22,000.

A: The answer is $22000

Q: erez Manufacturing Company has an opportunity to purchase some technologically advanced equipment…

A: IRR stands for internal rate of return. It is an important capital budgeting tool. IRR is the rate…

Q: Uramilaben

A: a. Compute the present value factor: Present value factor = Amount invested / Annual net cash…

Q: Franklin Manufacturing Company has an opportunity to purchase some technologically advanced…

A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

Q: A machine can be purchased at t=0 for $20,000. The estimated life is 15 years, with an estimated…

A: While evaluating the project, cash inflow should be higher than cash outflow in present value terms.…

Q: Give me expert answer

A: Project Evaluation and Sensitivity AnalysisWe can evaluate the project's profitability and analyze…

Q: Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to…

A: Accounting rate of return is the net income divided by the investment  Payback period is the period…

Q: Assume that a company is considering purchasing a new piece of equipment for $240,000 that would…

A: Simple rate of return is calculated by dividing the Net operating income by the initial investment.…

Q: Armor Investment Company is considering the acquisition of a heavily depreciated building on 10…

A: Given:The building gets depreciated on 10 acres of land.The cash flow is $102,200.The rate of…

Q: Calculate the average rate of return on the investment.

A:

Q: 2. Super Apparel wants to replace an old machine with a new one. The new machine would increase…

A: The objective of the question is to calculate the Accounting Rate of Return (ARR) for the new…

Q: Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format…

A: Net present value is a project appraisal technique based on the concept of time value of money. It…

Q: A new piece of equipment has a first cost of $300,000 with no salvage value. It will generate annual…

A: Cost of equipment = $ 300000 Life = 10 Years Salvage value = 0 Annual depreciation = (Cost - Salvage…

Q: Garcia Co. can invest in one of two alternative projects. Project Y requires a $360,000 initial…

A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…

Q: A new engineer at a sand and gravel operation is considering two mutually exclusive alternatives for…

A: The company evaluates the cash generated by each project when the company has two alternative…

Q: 8 to 12 years. Evaluate the sensitivity of PW by varying: a) MARR, while assuming a constant n value…

A: Minimum Acceptable Rate of Return :  > MARR is a way to assess whether an Investment is worth the…

Q: Godo AAU Company is considering the purchase of equipment that would allow the company to add a new…

A: NET PRESENT VALUENet Present Value is one of the Important Capital Budgeting Techniques. Net Present…

Q: A project has an initial cost of $34051 and a three-year life. The company uses straight-line…

A: The average accounting return (AAR) is calculated as the average annual net income divided by the…

Q: Woodard Company wants to buy a numerically controlled (NC) machine to be used in producing specially…

A: Net present value (NPV) = Present value of future cash flow - Initial outlayPresent value = Future…

Q: 2. Super Apparel wants to replace an old machine with a new one. The new machine would increase…

A: The objective of the question is to calculate the Accounting Rate of Return (ARR) for the new…

Q: pany has purchased a machine at the cost of $35,000. The machine is expected to provide annual…

A: NPV is net present value and is most used capital budgeting method being used and based on the time…

Q: Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000…

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

Q: If the machine is purchased, annual revenues are expected to be $100,000 and annual operating…

A: Pay back period is number of years required to recover initial investment of machine.

Q: Requirements: 1. Compute for the Accounting rate of return on initial investment 2. Compute for the…

A: ARR us the average net income that an asset or a project is expected to generate divided by it's…

Q: You have been asked to evaluate the proposed acquisition of a new Machine for your company.  The…

A: Net present value is the sum of present value of cash flows. Present value = cash flows/(1+discount…

Q: Raliegh, a nonprofit organization, estimates that it can save $23,000 a year in cash operating costs…

A: b.) Payback PeriodPayback period = Initial Investment /Cash Inflow= 90000 / 23000= 3.9130 yearsc.)…

Q: 9. Lt. Dan Corporation invested S80,000 in a manufacturing equipment. The salvage value of the asset…

A: The rate of return on investment shows the percentage of return earned by the company on the money…

Q: Sad Company is considering the purchase of a new machine that would cost $80,000. The machine would…

A: Capital Budgeting:Businesses use capital budgeting as a process to assess significant prospective…

Q: yield the following predict traight-line depreciation, and cash flows occur evenly throughout each…

A: Expected cash includes net income plus tax shield of depreciation.

Q: has a 12-year service life and a $120,000 salvage value, and it uses straight-line depreciation.…

A: Annual rate of return :- Annual rate of return by taking Annual profit after tax dividend by Annual…

Q: Belmont Corporation is considering the purchase of a new piece of equipment. The cost savings from…

A: One tool for capital budgeting that can be used quickly and simply to assess a project's…

Q: A piece of equipment has an initial cost of $125,000. The annual 0&M costs are $31,000 and increase…

A: The Net Present Worth or the NPV: The net present worth technique is a capital budgeting tool that…

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.