Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000, $87,000, and $72,000. Calculate the IRR for this piece of equipment. NOTE: Enter amounts rounded to two decimals (e.g., 78.76 or 40.00).
Q: Tulip Company sells two products, Style Blue and Style Red. Monthly sales and contribution margin…
A: Contribution Margin :— It is the difference between sales and variable cost. Contribution Margin =…
Q: Current Attempt in Progress The following stockholders' equity accounts, arranged alphabetically,…
A: SHAREHOLDERS EQUITY Shareholders equity is the Amount that the owners of the Company have…
Q: Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a…
A: Activity Rate :— It is calculated by dividing activity cost by activity cost driver. Under ABC…
Q: If you invest $8,000 at the end of every year for nine years at an interest rate of 8%, the balance…
A: A present asset's future value, abbreviated as FV, is the value that an asset is expected to have at…
Q: b1. What are the tax consequences (amount and character of recognized gain or loss) of the…
A: 1)a1)This distribution falls in the category of operating distributions that include property other…
Q: Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total…
A: Predetermined overhead rate for desk lamp = Total factory overhead rate/Total estimated direct labor…
Q: AUDIT OF INVENTORIES PROBLEM NO. 1 The Pasay Company is a wholesale distributor of automobile…
A:
Q: nderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division…
A: Business companies compile income statements in order to determine how much net income they generate…
Q: any is considering changing this product to a much more decorative model by adding a silk-screened…
A: Solution 1: Rosa Umbrella Decorated Umbrella Incremental Sales Revenue $99,000.00…
Q: Dividends Per Share Sandpiper Company has 20,000 shares of cumulative preferred 2% stock, $100 par…
A: The annual dividend to preferred shareholders is $40,000, in year 20Y1 the full dividend was paid…
Q: Shown here are condensed income statements for two different companies (assume no income taxes).
A: Times interest earned shows the ability of the company to pay off its interest obligations in the…
Q: . Gains on merchandise sales b. Gains on the sale of land c. Gains on the sale of…
A: Schedule 41 for Distribution of Income. a. The gain is deferred throughout the intercompany sale…
Q: Powell Company owns an 80% interest in Sauter, Inc. On January 1, 2011, Sauter issued $400,000 of…
A: A bond is a unit of corporate debt. The company issues bonds to the public and donates to the…
Q: Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting…
A: Organizations manufacture products and incur direct and indirect costs. Manufacturing overhead means…
Q: Use the average daily balance method to compute the finance charge on the credit card account for…
A:
Q: red Stock (10,500 shares) $525,000 Paid-in Capital in Excess of Par--Preferred Stock 68 500 Common…
A: Working 01-Feb Preferred Stock 50*2000 $ 1,00,000 Paid in Value in Excess 127000-100000…
Q: Chance Enterprises leased equipment from Third Bank Leasing on January Appropriate adjusting entries…
A: Lease - The details of rental agreements for both real estate and personal items are stated in…
Q: P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January…
A: Good will is non tangible assets that are the value of company which is above the fair value of all…
Q: B4. In a joint process, Tiny Town Lumbers produces two products: Long Boards and Really Long…
A: Total yard long boards and Really long board = 1440 + 2160 = 3600 Given Total joint…
Q: Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021.…
A: Solution: PV Factor based on Table or Calculator function PVAD of $1 PV of lease $123,288…
Q: Miller Company's contribution form Sales (33,000 units) Variable expenses Contribution margin Fixed…
A: Calculation of net operating income above case are as follows
Q: A machine costing $212.200 with a four-year life and an estimated $19.000 salvage value is installed…
A: calculation of depreciation under straight line method, unit of production method and double…
Q: TWO components of internal control
A: Audit refers to the process of checking books of accounts. It is very important to have an audit of…
Q: Franklin Manufacturing Company was started on January 1, year 1, when it acquired $81,000 cash by…
A: Product Cost :— It is the total cost incurred in the manufacturing of product. It is sum of direct…
Q: The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and…
A: a. Direct Material The table is presented here for this calculation. Direct…
Q: Yanni, who is single, provides you with the following information for 2021: Salary State income…
A: Taxable income refers to the income or amount which is used for determining the taxed owed through…
Q: At age 22, someone sets up an IRA (individual retirement account) with an APR of 7%. At the end of…
A: the answer is given below
Q: Question: 1) A delivery vehicle purchased by XYZ Ltd two years ago for $50 000 will be recorded at…
A: Basic principles of accounting are the principles that need to be followed while preparing financial…
Q: post closing trial balance for walton anvils
A: Post closing trial balance refers to the sheet which contains the balance sheet (BS) accounts list…
Q: On 1 July 2015, Monageng Limited concluded an agreement to purchase 75% of the ordinary shares in…
A: The day that the acquirer gains control of the acquiree is the date that IFRS 3 considers to be the…
Q: Identify the items that would be classified as investing activities on the statement of cash flows.
A: Lets understand the basics. Cashflow statement is divided into three type of activity which are, (1)…
Q: Nickerson Corporation began operations in 2013. There have been no permanent or temporary…
A: Any tax law that permits you to minimize your tax burden is referred to as a tax advantage benefit.…
Q: Nickerson Corporation began operations in 2013. There have been no permanent or temporary…
A: A tax advantage benefits is any tax legislation that allows you to reduce your tax burden. Tax…
Q: Miller Company's contribution format income statement for the most recent month is shown below: Per…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Prepare any necessary correcting journal entries to adjust inventory and related accounts to their…
A:
Q: ABC Ltd own stock in a company. The current price per share is K25. Quandy Ltd has just announced…
A: In the above case the current price of the shares held by ABC ltd is K25 and the buy back price…
Q: Wilco Inc. uses a process costing system with two cost categories (Materials and Conversion). Wilco…
A: Direct material cost is the cost related to raw materials which is used to produce the Final…
Q: What are the advantages and disadvantages of debt and equity issuance?
A: Lets understand the basics. Debt is a as name suggest liability of the company so interest payment…
Q: Discuss Briefly the fundamental principles of Duty of confidentiality An Auditor is required…
A: i) Fundamental principles of Duty of confidentiality 1. It is the duty of auditor that he should…
Q: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collectibles & More with…
A: Incremental analysis: It implies to a decision-making process approach that is comparative in…
Q: The Gulf countries should not increase the Value Added Tax as it reduces spending. This is a…
A: Normative statements contain a value judgement. Normative statements contain words such as "should",…
Q: The times interest earned ratio is computed as Da. Income Before Income Tax + Interest Expense Ob.…
A: Times interest earned ratio is useful for creditors of the business to measure the business's…
Q: On August 2, 2020, Wendy purchased a new office building for $3,800,000. On October 1, 2020, she…
A: Calculation of cost recovery deduction for 2020 and 2024 are as follows
Q: Compute Keegan Jordan's earnings using the three methods described above. Assume the rate for Job A…
A: HIGHER RATE FOR OVERTIME HOURS - Under this method, The highest rate paid among the jobs is used to…
Q: Suppose that on June 1, Fab Gyrations, a disc jockey service, creates a petty cash fund with an…
A: Journal Entry is the primary step to record the transaction in the books of accounts. Petty cash…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting…
A: Special order means one-time order that is received from not a regular customer. Special order…
Q: In May of Year 1, Leo purchased an annuity contract for $108.000. The annuity was to pay Leo $9,000…
A: Annuity An annuity is a long-term investment provided by an insurance provider that is intended to…
Q: Question: True or False 1) According to the Partnership Act, the profit of the partnership business…
A: Partnership is a contract or agreement between two or more than two persons. This is one of the form…
Q: Here is the adjusted trial balance of Rey Lantin Services for t alendar year 20X1. Make a…
A: The income statement is prepared to record the revenues and expenses of the current period. The…
Q: Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation…
A: Issue price of bonds are computed as present value of periodic interest and maturity value…
B5.
Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.Sandhill, Inc., is purchasing machinery at a cost of $ 3,544,720. The company's management expects the machinery to produce cash flows of $ 1,219,410, $ 1,277,160, and $ 1,705,150 over the next three years, respectively. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25.) Payback period is yearsRODEO, Inc., is purchasing machinery at a cost of $2,957,720. The company’s management expects the machinery to produce cash flows of $782,410, $944,160, and $1,546,150 over the next three years, respectively. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25.) Payback period is ___________ years
- Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. What is the internal rate of return (IRR) for this piece of equipment? Use the Present Value tables in Time Value of Money Appendix e of the book or use Excel to calculate the answer. Round to 2 decimal places. O Cannot be determined from the information provided. O 11.30% O 11.28% O 11.00%Can you show me how this is done? Grayson Corp. is considering the purchase of a piece of equipment that costs $34,269. Projected net annual cash flows over the project’s life are: Year Net Annual Cash Flow 1 $ 6,702 2 19,077 3 15,682 4 19,233 The cash payback period is. Round your answer by two decimals Selected Answer: 0.56 Correct Answer: 2.54 ± 0.01Beyer Company is considering buying an asset for $270,000. It is expected to produce the following net cash flows. Year Year 1 $66,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows Net cash flows Compute the payback period for this Investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Perlod answer to 2 decimal places.) $ (270,000) Year 2 $39,000 Payback period = Year 3 $67,000 Cumulative Cash Flows Year 4 $200,000 Year 5 $22,000
- The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Income from Net Cash Year Operations Flow 1 $18,750 $93,750 18,750 93,750 18,750 93,750 4 18,750 93,750 18,750 93,750 The present value index for this investment is Oa. 1.00 Оb. 1.051. The initial investment is $52,133 and the salvage value is $10,000. The project is expected to generate $25,087 net cash inflows and the annual net income is $5,072. State the annual rate of return in decimal form to two decimal places. (For example, if you calculate 16%, then state your answer as .16)Nestor Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Year 1 Year 2 Year 3 Year 4 Year 5 Annual Net Cash Flows $ 40,000 $ 40,000 $ 35,000 $ 35,000 $ 30,000 Compute the payback period for this investment. (Round to two decimal places.) Multiple Choice O 2.85 years. 2.57 years.
- A Co. is planning to undertake a project with an initial investment of $512412. This project is expected to generate a cash flow of $130,000 in year 1, $100,000 in year 2, $140,000 in year 3, and $956078 in year 4. Calculate the payback period of the project. (Do not enter any $ sign, comma, or any other text in the answer. Round your answers up to 2 decimal spaces.) (Do not include 'year/years', comma, or any other text. Round your answer to 2 decimal places.)C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first year. The expenditures are expected to be ($1500) at the end of the first year, $1000 at the end of second year, and to increase by $500 at the end of each of the next 4 years. The salvage value at the end of the 8th year is $1500. Draw the cash flow diagram.Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2.000 for installation. how long before they will receive their initial invest back from future cash flows? What is the payback period for the initial costs? Projected Cash flows Year 1: 5,000 Year 2: 7,000 Year 3: 4,000 Year 4: 1,000 Post your answer as number of years with 2 decimal places, for example 5.55