A company is planning to purchase a machine that will cost $24,000, have a 6-year life, and have no salvage value.  The company expects to sell the machine’s output of 3,000 units evenly throughout each year. Total operating income generated over the life of the machine is estimated to be $12,000.  The machine will generate net cash inflows of $6,000 per year.  The average rate of return for the machine is 50%. Group of answer choices True False

Q: What is the purchase price of the machine?

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Q: Year at 40% 10 -400,000 -400,000 1 182,000 86,000 96,000 44,160 137,840 2 178,000 86,000 92,000…

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Q: Draw the cash flow diagram for an investment that includes purchasing a machine that costs $50,000…

A: Cash flow: It is the inflow & outflow of cash from the company or a project.

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Q: A company will invest in a machine worth 50000$ to produce a new product. The economic life of the…

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A:

Q: Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from…

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Q: A company is considering purchasing a special machine to expand one of its production lines. The…

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Q: Garnet Enterprises is considering an investment in new equipment that would allow the company to…

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Q: Laurel's Lawn Care Limited has a new mower line that can generate revenues of $120,000 per year.…

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Q: Calculate the average rate of return on the investment.

A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.