eBook Show Me How 1000TLUcator=&inprogress=false C Average Rate of Return-New Product Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 6,200 units at $297 per unit. The equipment has a cost of $691,900, residual value of $52,100, and an 8- year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit Determine the average rate of return on the equipment. If required, round to the nearest whole percent. % $51.00 Print Item 200.00 34.60 $285.60 Q☆☆口 Coming December 9th - 16h Love and Monsters-Watch the tra 00 Dec 8 2:28 X

eBook Show Me How 1000TLUcator=&inprogress=false C Average Rate of Return-New Product Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 6,200 units at $297 per unit. The equipment has a cost of $691,900, residual value of $52,100, and an 8- year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit Determine the average rate of return on the equipment. If required, round to the nearest whole percent. % $51.00 Print Item 200.00 34.60 $285.60 Q☆☆口 Coming December 9th - 16h Love and Monsters-Watch the tra 00 Dec 8 2:28 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Amazon site BFI3 wants to test a new label scanner on their package sorter. The initial investment of the machine will be $2.5 million and the benefit due to cost savings will be $900,000 per year. Normal maintenance on the machine will cost $75,000 per year and they plan for major maintenance in year 7 of $500,000. At the end of the 10 year project life, they are able to sell the parts to another warehouse for $600,000. If the MARR is 11% what is the AEW of this project?
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QUESTION 3 You are considering starting a new factory producing small electric heaters. Each unit will sell at a price of $55. The production cost of each heater is $35. You are expecting to sell 9000 units per year. This project has an economic life of 6 years. The project requires an investment of $700000 in plants and equipment. This equipment will be depreciated to zero salvage value based on 5-year MACRS schedule. The depreciation rates from year 1 to 6 are 20 % ,32 %, 19.2 %, 11.52 %, 11.52 %, and 5.76 percent, respectively. The company will sell its old equipment for $100,000. The old machine is fully depreciated. The required rate of return for the project is 12 percent, the working capital requirement is 10 percent of the next year's sales revenue. The marginal corporate tax rate is 20 percent. At the termination of the project, the plant and equipment will be sold for an estimated value of $50000. Based on these assumptions, estimate the cash flow for capital expenditures.…
DLR Rheosystems makes high performance rotational viscometers capable of steady shear and yield stress testing in a rugged, compact footprint. How much could the company afford to spend now on new equipment in lieu of spending Php 200 000 one year from now and Php 300 000 three years from now, if the company uses an interest rate of 15 % per year? a.) Php 236 715.33 b.) Php 371 176.91 c.) Php 288 621.15 d.) Php 345 440.06
デジタル形式で段階的に解決ありがとう!! SOLVE STEP BY STEP IN DIGITAL FORMAT 1-Determine the investment recovery period for the company Industrias packaging sa de cv. The company is considering the purchase of a new machine and must choose between two alternatives: **The first machine requires an initial investment of $14,000 and will generate annual after-tax cash inflows of $3,000 for the next 7 years. **The second machine requires an initial investment of $21,000 and will provide an annual after-tax cash inflow of $2,300 for 10 years. a) Determine the payback period for each machine. b) Comment on whether the acquisition of the machines is acceptable, assuming that they are independent projects. c) Which machine should the company accept? Because?
solve a,b,c given in the image provided.
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Help Save & Exit Subm 16 Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and no salvage value. The machine will lower operating costs by $17,000 per year. The company's required rate of return is 18%. What is the net present value of this investment? Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. Multiple Choice $3,159 О $3,896 О О $3,796 $3,359
Minden Co. is considering buying new computer software that will assist customers in their product choices. The cost is $50,000. The benefit will be an additional cash inflow of $25,000 for four years, at which point the software will need replacing with a more modern version. The return on average investment is _______________. Question 15 options: 25.0% none of the options 42.5% 50.0% 30.0%
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