Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $900,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $1,400,000 $1,000,000 2 1,400,000 1,000,000 3 1,400,000 1,000,000 4 1,400,000 1,000,000 5 1,400,000 1,000,000 Required: Compute the payback period for the NC equipment. Round your answer to one decimal place.
Payback period = years
Year | Cash Revenues | Cash expenses | Net cash flow | |
0 | -900000 | |||
1 | 1400000 | 1000000 | 400000 | |
2 | 1400000 | 1000000 | 400000 | |
3 | 1400000 | 1000000 | 400000 | |
4 | 1400000 | 1000000 | 400000 | |
5 | 1400000 | 1000000 | 400000 | |
Payback Period = Initial Investment/ Annual net cash flow | ||||
Payback period = $900000/400000 | 2.3 | Years |
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Blaylock Company wants to...
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 123.1 and Exhibit 128.2 as you complete the requirement below. Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $ 730,671. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year...
Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $800,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses $1,000,000 $1,300,000 1,300,000 1,000,000 1,300,000 1,000,000 1,300,000 1,000,000 1,000,000 1,300,000 Required: Compute the NC equipment's ARR. Enter as a percent and round your answer to...
Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $700,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $1,600,000 $1,000,000 2 1,600,000 1,000,000 1,600,000 1,000,000 1,600,000 1,000,000 1,600,000 1,000,000 Required: Compute the investment's Net Present Value, assuming a required rate of return...
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 123.1 and Exhibit 120.2 as you complete the requirement below. Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $806,784. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash...
signment/a ssignmentMain.doFinvoker assignments&takeAssignmentSessionLocator assignment-takeinprogressefalse Calculator Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Melnik Company wants to buy a new machine costing $800,000. The equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $1,400,000 $1,116,000 1,400,000 1,116,000 1.480,000 1,116,000 1,400,000 1,116,000 1,400,000 1,116,000 Required: Compute the equipment's accounting rate of return. Enter as a percent and round your answer...
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Help please! Accounting Rabe of R X keAssignment/takeAssignmentMain.dotinvokersassignments&takeAssignmentSessioniocator assignment-takedinprogress false Calculator Payback, Accounting Rate of Return, Net Present Value, Intermal Rate of Return Melnik Company wants to buy a new machine costing $700,000. The equipment will last five years with ne expected salvage value. The expected after-tax cash fows associated with the project follow: Year Cash Revenues Cash Expenses 1 $1,300,000 $1,000,000 2 1,300,000 1,000,000 3 1,300,000 1,000,000 4 1,300,000 1,000,000 1,300,000 1,000,000 Required Compute the payback period forr the...
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