is planning to acquire a new machine at a total cost of P360,000. The estimated life of the machine is 6 years with no salvage value. The straight-line method of depreciation will be used. NUBD estimates that the annual cash flow from operations, before income taxes, from using this machine amounts to P90,000. Assume that NUBD’s cost of capital is 8% and the income tax rate is 40%. (Use 3 decimal places for the PV factors)What would be the net present value?

Q: The Wet Corporation has an investment project that will reduce expenses by $30,000 per year for 3…

A: Depreciation year 1= Depreciation rate * Project cost= 0.3333 * 35,000= 11665.50

Q: NUBD Co. purchased a new machine on January 1, 2021 for P350,000. The machine is expected to have a…

A: We have in the question, Initial Investment = P 350,000 Useful life = 8 years Discount Rate is 15%…

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

A: annual net income = annual increase in net cash flows  - Depreciation If no specific method is given…

Q: Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: A project has an initial cost of $34276 and a three-year life. The company uses straight-line…

A: Average accounting rate of return( on basis of initial investment). =( average net income ×100) ÷…

Q: Heidi Company is considering the acquisition of a machine that costs $693,000. The machine is…

A: Estimated cash payback period for the machine = Cost of machine / annual net cash flow

Q: Snoop bought a new house, the price of the house is $5,000,000.  Snoop will put down 20%  using a…

A: The calculation is:

Q: Aikman Company has an opportunity to invest in one of two projects. Project A requires a $240,000…

A: **Since you have uploaded a question with many sub sections and not specified which should be…

Q: Frost Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the…

A: IRR is a rate at which the present value of all cash inflows is almost equal to the initial…

Q: Dorothy & George Company is planning to acquire a new machine at a total cost of $37,500. The…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: Hayden Company is considering the acquisition of a machine that costs $320,000. The machine is…

A: Formulas: Cash payback period = Cash out flows / Cash inflows

Q: A company is considering replacing an existing machine with a more modern one. The tax rate is 40%.…

A: Let's proceed with the calculations.The Net Present Value (NPV) of replacing the old machine with…

Q: a) Compute the annual net cash flow. >) Compute the payback period. =) Compute the accounting rate…

A: Accounting rate of return (ARR):- It is a capital budgeting formula that is used to determine the…

Q: Ivanhoe Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the…

A: It is a percentage that represents the average annual rate of return at which the NPV of future cash…

Q: A company is considering a machine acquisition. The new machine will cost $ 60.000 and the shipping…

A: Investment Cash flow:- It includes inflow and outflow of cash from the sale and purchase of…

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

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

Q: Assume depreciation is calculated on a straight-line basis for tax purposes. Assume all cash flows…

A: 1a) Net Present Value =Sum of the present value of cash inflows-Present value of cash outflows.…

Q: Cullumber Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the…

A:

Q: company is considering the purchase of an asset which costs $56,000 and has an estimated scrap value…

A:

Q: impany considering the acquisition of a machine that costs $543,000. The machine is expected to have…

A: The question is related to Capital Budgeting. The Cash Payback Period is calculated with the help of…

Q: B2B Company is considering the purchase of equipment that would allow the company to add a new…

A: For the net cash flow, we simply get the difference between the cash inflows less cash outflows. The…

Q: A corporation purchased a machine for $60,000 four years ago. It had an estimated life of 10 years…

A: Business organizations are required to charge depreciation expenses on their assets. The book value…

Q: Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost)

A: Present Worth: It is the present value of the discounted cashflows for a period of time.…

Q: Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $325,526,…

A: The internal rate of return is the predicted yearly rate of growth from an investment. Business…

Q: Hayden Company is considering the acquisition of a machine that costs $553,000. The machine is…

A: Payback period is the time required to recover the investment.  Payback period = Initial…

Q: Hayden Company is considering the acquisition of a machine that costs $392,000. The machine is…

A: The payback period is the length of time in which an investment reaches its break-even point. In…

Q: Blue Company, is trying to assess the feasibility of acquiring an accounting system for $10,000,000.…

A: Accounting system cost = $10,000,000 Saving = $2,000,000 Time Period = 5 Years Cost of capital = 15%…

Q: Tucker Manufacturing is considering investing in specialized equipment costing $841,000. The…

A: Net cash inflow and average net income are two different financial metrics used in capital budgeting…

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

A: In this we need to calculate the present value of buying and present value of leasing both are…

Q: The cost of the machine is $14, 475. The CCA rate is 29% After 9 years, the machine is sold for $719…

A: The objective of the question is to calculate the present value of the Capital Cost Allowance (CCA)…

Q: Need Answer of this Question

A: Step 5: Compute After-Tax Cash Flow The after-tax cash flow from the sale is the sale price minus…

Q: What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 13%.)

A: The internal rate of return (IRR) is the rate at which the present value of cash inflow becomes…

Q: Heidi Company is considering the acquisition of a machine that costs $596,000. The machine is…

A: Cash payback period is the time that is determined by the accountants and fund managers to know the…

Q: Blue Company, is trying to assess the feasibility of acquiring an accounting system for $10,000,000.…

A: Book rate of return is calculated to identify potential profitability of the project in which an…

Q: Acorporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: The estimated cash payback period for the machine is (round to one decimal point)?

A: Payback period of a project means how long it will take to cover the initial investment by annual…

Q: Acme is considering the sale of a machine with a book value of $80,000 and 3 years remaining in its…

A: Cash flow is the amount of cash used or generated by the business enterprise at a given point. The…

Q: (6) Hayden Company is considering the acquisition of a machine that costs $500,000. The machine is…

A: The Company is considering the acquisition of a machine that costs $500,000. The machine is expected…

Q: Need help with this Question

A: Step 1:

Q: Vaughn was presented with a second capital investment that provided similar production facilities as…

A: Cash payback period refers to the period which is required to recover the capital expenditure made…

Q: Emma Company is considering buying a machine for $206,000 with an estimated life of 15 years and no…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the…

A: Initial cost = $166,000Annual cash inflow = $32,982Internal rate of return = ?Internal rate of…

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

A: Capital budgeting is similar to making long-term financial decisions. It all comes down to deciding…

Q: Suppose that a company is considering a machine acquisition. The new machine will cost $60.000 and…

A: Investment cash outflow : It refers to the outgoing of cash that occurs in a company due to…

Q: educe its salary cash expense by $2,000,000 per year. The system has a five-year life, it will be…

A: Net Present Value: It is a measure of profitability in absolute dollar terms and is estimated by…