Calculate: 1. Payback period 2. Profitability Index

Q: A company is considering a 3-year project with a projected net income of sh. 4M, 6M,5M in year 1,…

A: Accounting rate of return is one of the techniques of the capital budgeting analysis. This technique…

Q: Luki-Liku Co. purchases an asset for $100,000 with an estimated life of 5 years and a salvage value…

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Q: 16. A company purchases a piece of construction equipment. The expected income is SAR 3,100 annually…

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Q: A company has purchased a machine (CCA rate 24%) at $221,000 and has a tax rate of 38.00%. By how…

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Q: A machine is purchased for $500,000 and is used through the end of Year 2. The machine falls under…

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Q: NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over…

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Q: A tea Company is considering an investment proposal to install new milling controls. The project…

A: Year 1 2 3 4 5 CFBT 10,000 11,000 14,000 15,000 25,000 Less: Tax @55% 5,500 6,050 7,700 8,250…

Q: 1.Gillespie Gold Products, Inc., is considering the purchase of new smelting equipment. The new…

A: Thanks for the Question Bartleby's Guideline: “Since you have asked multiple question, we will solve…

Q: Gillespie Gold Products, Inc., is considering the purchase of new smelting equipment. The new…

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Q: ucky Cement wants to evaluate an acquisition of an equipment worth Rs 300,000. Its marginal tax rate…

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Q: Builders Supply, Inc.is considering adding a new product line that is expected to increase annual…

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Q: Required For each project calculate: (i) Pay-back Period (ii) Internal Rate of Return…

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Q: The Lumber Yard is considering adding a new product line that is expected to increase annual sales…

A: Depreciation is the decrease in the value of fixed assets. The cost of the fixed assets is allocated…

Q: A company is considering an investment proposal to install new milling machine. The project will…

A: Payback period and net present value is one of the methods under capital budgeting technique.…

Q: Sad Company is considering the purchase of a new machine that would cost $80,000. The machine would…

A: Capital Budgeting:Businesses use capital budgeting as a process to assess significant prospective…

Q: estimated cash flows before tax (CFBT) are? 10,000; 11,000; 14,000; 15,000 and v machinery. The…

A: Tax rate is 55% Discount rate is 10% Depriciation Method is straight line   To Find: Average rate…

Q: Compute the payback period and the Net Present Value at 10% discount rate, profit after tax for each…

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Q: This question is based on the following in formation: An investment is Machinery costing P 250,000…

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Q: 9. The Lumber Yard is considering a 5-year project that requires initial investment of $96,000 in…

A: We’ll answer the first question since the exact one wasn’tspecified. Please submit a new question…

Q: A project will increase sales by $60,000 and cash expenses by $51,000. The project will cost $40,000…

A: Annual increase in sales = $60,000Annual cash expenses = $51,000Cost = $40,000useful life = 4…

Q: Daily Enterprises is purchasing a $9.6 million machine. It will cost $45,000 to transport and…

A: Let's examine the incremental earnings (net income) resulting from the new machine in detail: 1.…

Q: A company has purchased a machine (CCA rate 24%) at $300,000 and has a tax rate of 33.00%. By how…

A: NPV is capital budgeting technique that uses time value of money to determine the present value of…

Q: NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over…

A: Calculation of present value of cash Inflows:::: AAnnual cash flows::P40,000 Less: Depreciation…

Q: The Lumber Yard is considering adding a new product line that is expected to increase annual sales…

A: In this question, we are required to determine the depreciation tax shield.

Q: A company has purchased a machine (CCA rate 27 %) at $232,000 and has a tax rate of 38.00%. By how…

A: Salvage value refers to the residual resale value or scrap value of the project or asset at the end…

Q: Daily Enterprises is purchasing a $10.3 million machine. It will cost $54,000 to transport and…

A: Compute the free cash flow for year 0, using the equation as shown below: Free cash flow=-Machine…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.