Bailey Corporation is considering the elimination of one of its segments. The following fixed costs pertain to the segment. If the segment is eliminated, the building it uses will be sold. Annual advertising expense Market value of the building Annual depreciation on the building Annual maintenance cost on equipment Annual real estate taxes on the building Annual supervisory salaries $180,000 $30,000 $20,000 $26,000 $8,000 $72,000 Annual allocation of companywide facility-level cost $30,000 Original cost of the building Current book value of the building Required: $75,000 $54,000 Based on this information, determine the amount of avoidable costs associated with the segment.

After-Tax Net Present Value and IRR (Non-MACRS Rules—Straight-Line vs. DoubleDeclining-Balance Depreciation Methods) eEgg is considering the purchase of a new distributed network computer system to help handle its warehouse inventories. The system costs $60,000to purchase and install and $30,000 to operate each year. The system is estimated to be useful for 4years. Management expects the new system to reduce the cost of managing inventories by $62,000per year. The firm’s cost of capital (discount rate) is 10%.Required1. What is the net present value (NPV) of the proposed investment under each of the following independent situations? Use the NPV built-in function in Excel; round answers to the nearest whole dollar. a. The firm is not yet profitable and therefore pays no income taxes. b. The firm is in the 30% income tax bracket and uses straight-line (SLN) depreciation with no salvagevalue. Assume MACRS rules do not apply; calculate depreciation expense using the SLN functionin Excel.

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

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.

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Unequal Lives Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine 190-3, which has a cost of $220,000, a 3-year expected life, and after-tax cash flows (labor savings and depreciation) of $97,000 per year; and Machine 360-6, which has a cost of $320,000, a 6-year life, and after-tax cash flows of $93,400 per year. Knitting machine prices are not expected to rise, because inflation will be offset by cheaper components (microprocessors) used in the machines. Assume that Filkins's cost of capital is 12%. Calculate the two projects' extended NPVs. Do not round intermediate calculations. Round your answers to the nearest dollar. Machine 190-3: $   Machine 360-6: $   Should the firm replace its old knitting machine? If so, which new machine should it use? The firm -Select-should replace its old knitting machine with Machine 190-3should replace its old knitting machine with Machine 360-6should not replace…

An old machine cost P48,000.00 a year to maintain. What expenditures for a new machine is justified if no maintenance will be acquired for the first 3 years, P12,000.00 per year for the next 7 years, and P48,000 a year thereafter? Assume money to cost 4% compounded annually and no other costs to be considered. Answer. P325,293.20

Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine 190-3, which has a cost of $190,000, a 3-year expected life, and after-tax cash flows (labor savings and depreciation) of $87,000 per year; and Machine 360-6, which has a cost of $360,000, a 6-year life, and after-tax cash flows of $98,300 per year. Knitting machine prices are not expected to rise because inflation will be offset by cheaper components (microprocessors) used in the machines. Assume that Filkins’ cost of capital is 14%. Should the firm replace its old knitting machine? If so, which new machine should it use? By how much would the value of the company increase if it accepted the better machine? What is the equivalent annual annuity for each machine?

An auto repair company needs a new machine that will check for defective sensors. The machine has an Initial investment of $224,000. Incremental revenues, including cost savings, are $120,000, and Incremental expenses, including depreciation, are $50,000. There is no salvage value. What is the accounting rate of return (ARR)?

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.