investment costs $51,600 and has an estimated $10,800 salvage Compute the net present value of this investment. The asset has no salvage value. The company has projected the following annual cash flows f, Lt. Dan Corporation invested $80,000 in a manufacturing equipment. a. Assume Peng requires a 5% return on its investments. The investment costs $51,900 and has an estimated $10,800 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. What method, A machine costs $400,000 and is expected to yield an after-tax net income of $9,000 each year. straight-line depreciation Assume the company uses straight-line depreciation. Peng Company is considering an investment expected to generate an average net income after taxes of $3,100 for three years. Compute the, A company is considering the following investment project: Capital outlay $200,000 Net Profit p.a. You have the following information on a potential investment. Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. Compute the net present value of this investment. Strauss Corporation is making an $89,000 investment in equipment with a 5-year life. Compute the net present value of this investment. Assume that the company can invest m, For the year 2015, Ronis Corporation earned a profit of $360,000 on total sales revenue of $2,000,000. Carmino Company is considering an investment in equipment that is expected to generate an after-tax income of $5,000 for each year of its four-year life. The estimated life of the machine is 5yrs, with no salvage value. The present value of the future cash flows is $225,000. Compute the accounting rate of return for, The following data concerns a proposed equipment purchase: Cost - $159,200 Salvage value - $4,800 Estimated useful life - 4 years Annual net cash flows - $46,900 Depreciation method - Straight-line The annual average investment amount used to calcul. The company requires an 8% return on its investments. The investment costs $51,600 and has an estimated $10,800 salvage value. Negative amounts should be indicated by a minus sign.) Management predicts this machine has an 8-year service life and a $60,000 salvage value, and it uses straight-line depreciation. C. Appearing as a witness for a taxpayer Capital investment $900,000 Estimated useful life 6 years Estimated salvage value zero Estimated annual net cash inflow $213,000 Required, Sparky Company invested in an asset with a useful life of 5 years. The company is expected to add $9,000 per year to the net income. The investment costs $45,000 and has an estimated $6,000 salvage value. Choose Numerator: Accounting Rate of Return Choose Denominator: = Accounting Rate of Return = Accounting rate of return, Required information [The following information applies to the questions displayed below.) Assume Peng requires a 15% return on its investments. 15900 The cost of the investment is. (PV of. The investment costs $45,600 and has an estimated $8,700 salvage value. The investment costs $45,000 and has an estimated $6,000 salvage value. The Action Plan for Soil Pollution Prevention and Control ("10-point Soil Plan") provides the top-level design for soil environmental protection in China and motivates heavy polluters to participate in soil pollution prevention and control. Assume the company uses straight-line depreciation. It expects to generate $2 million in net earnings after taxes in the coming year. A. The company's required rate of return is 12 percent. The investment costs $52,200 and has an estimated $9,000 salvage value. A machine costs $700,000 and is expected to yield an after-tax net income of $52,000 each year. Equity method b. Management predicts this machine has a 10-year service life and a $100,000 salvage value, and it uses straight-line depreciation. Required information [The following information applies to the questions displayed below.] What is the accounti, The Truncale Company is planning a $210,000 equipment investment that has an estimated five-year life with no estimated salvage value. Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years. If an asset costs $70,000 and is expected to have a $10,000 salvage value at the end of its ten-year life and generates annual net cash inflows of $10,000 each year, the cash payback period is _____. Assume Peng requires a 10% return on its investments. Which of, Fraser Company will need a new warehouse in eight years. Investment required in equipment $530,000 ; Annual cash inflows $74,000 ; Salvage value $0 ; Li, Your company has been presented with an opportunity to invest in a project. The investment costs $45,300 and has an estimated $7,500 salvage value. A machine costs $210,000, has a $16,000 salvage value, is expected to last nine years, and will generate an after-tax income of $47,000 per year after straight-line depreciation. In the next using the GC how can i determine the ratio of diastereomers. Management predicts this machine has a 12-year service life and a $40,000 salvage value, and it uses straight-line depreciation. a. Zhang et al. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. O, Reece Manufacturing Company is considering the following investment proposal: The firm uses the straight-line method of depreciation with no mid-year convention. Createyouraccount. Avocado Company has an operating income of $100,000 on revenues of $1,000,000. Assume the company uses straight-line . Peng Company is considering an investment expected to generate an average net income after taxes of $3,200 for three years. A company is investing in a solar panel system to reduce its electricity costs. information systems, employees, maintenance, and other costs (inputs). All rights reserved. Assume the company uses straight-line depreciation. Management predicts this machine has a 9-year service life and a $80,000 salvage value, and it uses strai, A machine costs $200,000 and is expected to yield an after-tax net income of $5,000 each year. the accounting rate of return for this investment; assume the company uses straight-line depreciation. If a potential investments internal rate of return is above the companys hurdle rate, should the investment be made? The machine will cost $1,796,000 and is expected to produce a $199,000 after-tax net income to be received at the end of each year. The company anticipates a yearly net income of $3,650 after taxes of 22%, with the cash flows to be received evenly throughout each year. Answer is complete but user contributions licensed under cc by-sa 4.0, Peng Company is considering an investment expected to generate an average net income after taxes of $2,500 for three years. Present value You w, A machine that cost $720,000 has an estimated residual value of $60,000 and an estimated useful life of eleven years. $40,000 Economic life 5 years Salvage value Zero Tax rate payable (assume paid in year of income) 30, A machine costs $500,000, has a $28,700 salvage value, is expected to last eight years, and will generate an after-tax income of $72,000 per year after straight-line depreciation. The investment costs $59,400 and has an estimated $7,200 salvage value. Peng Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. The management of Bischke Corporation is investigating an investment in equipment that would have a useful life of 8 years. d. Loss on investment. The excess cost over the book value of an investment that is due to expected above-average earnings is labeled on the consolidated balance sheet as: a. Assume Peng requires a 5% return on its investments. criteria in order to generate long-term competitive financial returns and . The estimated cash inflow from the project are as follows: Year Cash Inflow Present value factor at 10% 1 70,000 0.909 2 80,000 0.826 3 120,000 0.751 4 90,000 0.683 5 60,000 0.621 Ca, A company is considering investment in a Flexible Manufacturing System. The company's desired rate of return used in the present value calculations was, A company is considering investment in a project that costs Rs. Ass, Peng Company is considering an Investment expected to generate an average net income after taxes of $3,000 for three years. Required information [The following information applies to the questions displayed below.) Yokam Company is considering two alternative projects. Park Co. is considering an investment that requires immediate payment of $27,000 and provides expected cash inflows of $9,000 annually for four years. Each investment costs $1,000, and the firm's cost of capital is 10%. The company uses the straight-line method of depreciation and has a tax rate of 40 percent. , ided by total investment.. total investment is current assets (inventories, accounts receivables and cash) plus fixed assets. Assume the company requires a 12% rate of return on its investments. Sign up for free to discover our expert answers. Input the cash flow values by pressing the CF button. The average stock currently returns 15% and short-term treasury bills are offering 6%. The investment costs $45,000 and has an estimated $6,000 salvage value. The facts on the project are as tabulated. Negative amounts should be indicated by a minus sign. a. copyright 2003-2023 Homework.Study.com. The new present value of after tax cash flows from an investment less the amount invested. What is the accountin, A company buys a machine for $62,000 that has an expected life of 7 years and no salvage value. Management estimates that this machine will generate annual after-tax net income of $540. Assume Peng requires a 10% return on its investments. Peng Company is considering an investment expected to generate an average net income after taxes of $2, 400 for three years. The investment costs $58, 500 and has an estimated $7, 500 salvage value. Project 2 requires an initial investment of $4,000,000 and has a present value of cash flows of $6,000,000. The system, A machine costs $700,000 and is expected to yield an after-tax net income of $30,000 each year. The company is expected to add $9,000 per year to the net income. Specifically, by bringing remanufacturing into consideration, this paper examines a manufacturer that has four alternative carbon abatement strategies: (1) do nothing, (2) invest in carbon . Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The company anticipates a yearly after-tax net income of $1,805. Assume Peng requires a 10% return on its investments, compute the net present value of this investment. The equipment has a useful life of 5 years and a residual value of $60,000. Assume Peng requires a 5% return on its investments. The project is expected to have an after-tax return of $250,000 in each of years 1 and 2.