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book Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger cover

Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

النسخة 6الرقم المعياري الدولي: 978-1305103962
book Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger cover

Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

النسخة 6الرقم المعياري الدولي: 978-1305103962
تمرين 14
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return
Booth Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $960,000. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow:
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return  Booth Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $960,000. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow:     Required:  1. Compute the payback period for the NC equipment. 2. Compute the NC equipment's ARR. Round the percentage to one decimal place. 3. Compute the investment's NPV, assuming a required rate of return of 10%. 4. Compute the investment's IRR.
Required:
1. Compute the payback period for the NC equipment.
2. Compute the NC equipment's ARR. Round the percentage to one decimal place.
3. Compute the investment's NPV, assuming a required rate of return of 10%.
4. Compute the investment's IRR.
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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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