Aurora Manufacturing is considering the purchase of new equipment that would allow the company to produce a new line of products. The equipment costs $400,000, has a 10-year life, and no salvage value. The expected annual income from this equipment is detailed below: Description Sales of new product Expenses: Amount $250,000 Materials, labor, and overhead (except depreciation) $140,000 | - Depreciation - Equipment - Selling, general, and administrative expenses Annual Net Income A) Compute the annual net cash flow. B) Compute the payback period. $40,000 $22,000 $48,000 C) Compute the accounting rate of return (ARR) for this equipment.

Newmarge Products Inc. is evaluating a new design for one of its manufacturing processes. The new design will eliminate the production of a toxic solid residue. The initial cost of the system is estimated at 860,000 and includes computerized equipment, software, and installation. There is no expected salvage value. The new system has a useful life of 8 years and is projected to produce cash operating savings of 225,000 per year over the old system (reducing labor costs and costs of processing and disposing of toxic waste). The cost of capital is 16%. Required: 1. Compute the NPV of the new system. 2. One year after implementation, the internal audit staff noted the following about the new system: (1) the cost of acquiring the system was 60,000 more than expected due to higher installation costs, and (2) the annual cost savings were 20,000 less than expected because more labor cost was needed than anticipated. Using the changes in expected costs and benefits, compute the NPV as if this information had been available one year ago. Did the company make the right decision? 3. CONCEPTUAL CONNECTION Upon reporting the results mentioned in the postaudit, the marketing manager responded in a memo to the internal audit department indicating that cash inflows also had increased by a net of 60,000 per year because of increased purchases by environmentally sensitive customers. Describe the effect that this has on the analysis in Requirement 2. 4. CONCEPTUAL CONNECTION Why is a postaudit beneficial to a firm?

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $240,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.   Sales of new product $ 150,000 Expenses   Materials, labor, and overhead (except depreciation) 80,000 Depreciation—Equipment 20,000 Selling, general, and administrative expenses 15,000 Income $ 35,000  (a) Compute the annual net cash flow.(b) Compute the payback period.(c) Compute the accounting rate of return for this equipment.

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $432,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.   Sales of new product $ 270,000 Expenses   Materials, labor, and overhead (except depreciation) 144,000 Depreciation—Equipment 36,000 Selling, general, and administrative expenses 27,000 Income $ 63,000 (a) Compute the annual net cash flow.

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $408,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.   Sales of new product $ 255,000 Expenses   Materials, labor, and overhead (except depreciation) 136,000 Depreciation—Equipment 34,000 Selling, general, and administrative expenses 25,500 Income $ 59,500  (a) Compute the annual net cash flow.(b) Compute the payback period.(c) Compute the accounting rate of return for this equipment

B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $144,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows.   Sales of new product $ 90,000 Expenses   Materials, labor, and overhead (except depreciation) 48,000 Depreciation—Equipment 12,000 Selling, general, and administrative expenses 9,000 Income $ 21,000  (a) Compute the annual net cash flow.(b) Compute the payback period.(c) Compute the accounting rate of return for this equipment. I could not include an image for "C" please answer seperately

Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $491,000 cost with an expected four-year life and a $20,000 salvage value Additional annual information for this new product line follows PV of $. EX of St. PVA of Stand EVA of $ (Use appropriate factors) from the tables provided) Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year 3. Compute net present value for this machine using a discount rate of 7% Complete this question by entering your answers in the tabs below. Required 1 Required 2 year 4 Required 3 Compute net present value for this machine using a discount rate of 7%. (Do not round intermediate calculations. Negative amounts should be entered with a minus sign.…

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A company is considering purchasing factory equipment that costs $400000 and is estimated to have no salvage value at the end of its 5-year useful life. If the equipment is purchased, annual revenues are expected to be $162000, and annual operating expenses exclusive of depreciation expenses are expected to be $27000. The straight-line depreciation method would be used.if the equipment is purchased the annual rate of return expected on this equipment is 1)6.75 % 2)33.75% 3)27.50 % 4)40.50%

Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $480,000 cost with an expected four-year life and a $20,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following.