Krostel Company is planning to acquire a machine costing P 500,000 with a useful life of 3 years with a salvage value of P 20,000. This machine will generate annual cash savings of P 250,000. Income taxes are 20%. The company uses the SYD method for computing depreciation. What is the accounting rate of return on the average cost of investment?  a. 27.7%  b. 32.7%  c. 61.5%  d. 76.7%

Quary Company is considering an investment in machinery with the following information.  Initial investment $ 308,000   Materials, labor, and overhead (except depreciation) $ 69,300 Useful life 9 years Depreciation—Machinery 32,000 Salvage value $ 20,000   Selling, general, and administrative expenses 7,700 Expected sales per year 15,400 units Selling price per unit $ 10 (a) Compute the investment’s annual income and annual net cash flow.(b) Compute the investment’s payback period. Please also help with what I need to use to fill in the blanks on the first image. "Required A"

Required information [The following information applies to the questions displayed below.] Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. The investment costs $45,000 and has an estimated $6,000 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Choose Numerator: 1 1 Accounting Rate of Return Choose Denominator: G O

Heidi Company is considering the acquisition of a machine that costs $401,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $128,000, and annual operating income of $88,392. The estimated cash payback period for the machine is (round to one decimal point)? a.5.5 years b.4.5 years c.4.0 years d.3.1 years

Sheffield Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $170,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $32,652. Click here to view PV table. What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 13%.) Internal rate of return % do

Emma Company is considering buying a machine for $206,000 with an estimated life of 15 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $20,500 each year. The cash payback on this investment is Round your answer 2 decimal places Selected Answer:  6,766.67 Correct Answer:  6.02 ± 0.05

Stenback, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Initial capital investment Estimated useful life Estimated residual value Estimated annual net cash inflow for 10 years Required rate of return Compute the payback period for each investment. Show your calculations and round to one decimal place. $ Investment A Investment B 280,000 $ 210,000 7 years 13 years 12,000 25,000 45,000 85,000 14% 11% Investment A Investment B Select the formula, then enter the amounts to calculate the payback period for each investment. + = Payback (in years) = =

ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage value. The following are estimated for Year 1 of the project: Sales = $100,000 Production costs = $82,600 Depreciation expense = $6,000 Calculate the following for ABC Company for Year 1: Operating income = $ Average investment = $ Accounting rate of return = %

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