Following is information pertaining to an investment made in an equipment by SunsetIncorporation. Using the given information calculate the payback period of the investment.Round the answer to 2 decimal places.Initial Investment$210,00010 yearsUseful lifeSalvage ValueAnnual net income generated|Cost of Capital$25,000$18,90011%a. 9 yearsb. 5.16 yearsс. 5.61 yearsd. 11.11 yearsAnswerOAOBOcODSubmit

The payback period is the time required to recover the initial investment made by the company. The…

Following is information pertaining to an investment made in an equipment Incorporation. Using the given information calculate the payback period of the in Round the answer to 2 decimal places. Initial Investment $210,000 Useful life Salvage Value Annual net income generated Cost of Capital 10 years $25,000 $18,900 11%

Following is information pertaining to an investment made in an equipment Incorporation. Using the given information calculate the payback period of the in Round the answer to 2 decimal places. Initial Investment $210,000 Useful life Salvage Value Annual net income generated Cost of Capital 10 years $25,000 $18,900 11%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Payback Period and Net Present Value Table Please find the Net Present Value based on the following information about an anonymous company and complete the table attached. Initial Investment $1,680,000 Available Net Income Generated $ 164,640 Expected Life 10 years Salvage value $140,000 Cost of Capital 15%
4. A company is considering one of the following 3 mutually exclusive alternatives. Project Initial Investment operating Cost per year Revenue per year Salvage value Life (years) A B $63,000.00 $61,000.00 $15,000.00 $11,000.00 $38,000.00 $26,000.00 $12,000.00 $17,500.00 6 4 C $85,000.00 $13,000.00 $35,000.00 $16,000.00 12 If the company uses a MARR of 8%, which of the alternatives will they select using Present Worth Analysis?
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Input area: Installation cost Pretax salvage value Operating cost per year Initial NWC Tax rate Discount rate *Depreciation straight-line over life Output area: Annual depreciation charge Aftertax salvage value OCF NPV $ SA SA SA GA $ 385,000 $ 60,000 $ 135,000 35,000 21% 10% ᏌᏊ Ꮚ Ꮚ $ 77,000 $ 47,400 $ 122,820 5
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Required information A project has a first cost of $670,000, a salvage value of 27% of the first cost after 3 years, and annual (GI-OE) of $275,000. Assume the company has a Te of 37%. Determine the approximate after-tax rate of return (ROR). The after-tax rate of return (ROR) is determined to be
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The value of your investment is divided into $30,000 for the land and $120,000 for the office space. Assume the salvage value of your investment is $40,000 at the end of seventh year. Using CCA=1%, compute the undepreciated capital cost of the office space for year four. a) Between $114,000 and $117,000 b) Between $120,000 and $123,000 c) Between $95,000 and $98,000 O d) Between $110,000 and $113,000 e) None of the answers are correct f) Between $92,000 and $95,000