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WhatsApp: +86 18203695377WEBFinance questions and answers. Sixteen years ago, the Morris Corporation purchased a milling machine for 250,000. It is being depreciated on straightline basis to an estimated 25,000 salvage over a 20 year period. The firm is now considering selling the old machine and purchasing a new one at a cost of
WhatsApp: +86 18203695377WEBMay 25, 2021 · Johnson Products is considering purchasing a new milling machine that costs 100,000. The machine's installation and shipping costs will total 2,500. If accepted, the milling machine project will require an initial net working capital investment of 20,000. Johnson plans to depreciate the machine on a straightline basis over a .
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WhatsApp: +86 18203695377WEBJan 18, 2021 · Johnson products is considering purchasing a new milling machine that costs 100,000. The machines installation and shipping costs will total 2,500. If accepted, the milling machine project will require an initial net working capital investment of 20,000. Johnson plans to depreciate the machine on a straightline basis over a .
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WhatsApp: +86 18203695377WEB21. McPherson Company must purchase a new milling machine. The purchase price is 50,000, including installation. The machine has a tax life of 5 years, and it can be depreciated according to the following rates. The firm expects to operate the machine for 4 years and then to sell it for 12,500. If the marginal tax rate is 40%, what will the ...
WhatsApp: +86 18203695377WEBJohnson Products is considering purchasing a new milling machine that costs 100,000. The machine's installation and shipping costs will total 2,500. If accepted, the milling machine project will require an initial net working capital investment of 20,000. Johnson plans to depreciate the machine on a straightline basis over a period of 8 years.
WhatsApp: +86 18203695377WEBNormal cash flow stream. Cost (negative CF) followed by a series of positive cash inflows. One change of signs. Nonnormal cash flow stream. Two or more changes of signs. Most common: Cost (negative CF), then string of positive CFs, then cost to close project. Examples include nuclear power plant, strip mine, etc.
WhatsApp: +86 18203695377WEB4 Multiple choice questions. Term. Milling, Inc. is considering a new milling machine. The machine costs 125,000. They can received a 15,000 trade in allowance for the old milling machine. The new machine can be used to generate 35,500 in annual revenue. Cash operation expenses are estimated to be 14,500 per year.
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WhatsApp: +86 18203695377WEBIf held until year 5, the existing machine's market value would be zero. Over its fiveyear life, the new machine should reduce operating costs (excluding depreciation) by 17,000 (it's EBIDT) per year compared to the old machine. Training costs of employees who will operate the new machine will be a onetime cost of 5,000 which should be ...
WhatsApp: +86 18203695377WEBA factory is considering the purchase of a new machine for one of its units. The machine costs 100,000. The machine will depreciate on a straightline basis over its 10year life to a salvage value of zero. The machine is expected to save the company 50,000 annually, but in order to operate it, the factory will have to transfer an employee ...
WhatsApp: +86 18203695377WEBAccounting questions and answers. Question 3 2 pts Milling, Inc. is considering a new milling machine. The machine costs 125,000. They can received a 15,000 trade in allowance for the old milling machine. The new machine can be used to generate 35,500 in annual revenue. Cash operation expenses are estimated to be 14,500 per .
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WhatsApp: +86 18203695377WEBA factory is considering purchasing a new machine. It has two alternatives. Machine A costs 15, 000 to purchase and 6,000 maintenance cost every year. Machines B costs 30, 000 to purchase and its annual maintenance cost is 1, 000. Machine A can last 3 years while Machine B has a life of 5 years. If the company chooses one machine, it will ...
WhatsApp: +86 18203695377WEBProblem. 4P. Stepbystep solution. Step 1 of 3. (a) Calculate the net investment (NINV). Net investment is the initial net amount of cash a company spends on a project at time period zero. Net investment equals the asset's cost plus shipping and installation costs plus any investment required in net working capital minus the proceeds from ...
WhatsApp: +86 18203695377WEB(a) Calculate the net investment (NINV). Net investment is the initial net amount of cash a company spends on a project at time period zero. Net investment equals the asset's cost plus shipping and installation costs plus any investment required in net working capital minus the proceeds from the sale of existing assets plus/minus taxes involved with the .
WhatsApp: +86 18203695377WEBJohnson Products is considering purchasing a new milling machine that costs 100,000. The machine's installation and shipping costs will total 2,500. If accepted, the milling machine project will require an initial net working capital investment of 20,0; ABC, Inc is considering the purchase of a new equipment.
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WhatsApp: +86 18203695377WEBOur expert help has broken down your problem into an easytolearn solution you can count on. Question: Monster Beverage is considering purchasing a new canning machine. This machine costs 3,500,000 up front. Required return = % 0 3,500,000 3,500,000 1 1,000,000 913,242. Monster Beverage is considering purchasing a new canning .
WhatsApp: +86 18203695377WEBThe machine falls into the MACRS 3year class, and it would be sold after 3 years for 111,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a 10,000 increase in net operating working capital (increased inventory less increased accounts payable).
WhatsApp: +86 18203695377WEBThe Manning Metal Co. is considering the purchase of a new milling machine during year 0 . The machine's base price is 135, 000, and it will cost another 15, 000 to modify it for special use. This results in a 150, 000 cost base for depreciation. The machine falls into the MACRS sevenyear property class.
WhatsApp: +86 18203695377WEBRory Company has an old machine with a book value of 79, 000 and a remaining fiveyear useful life. Rory is considering purchasing new machine at a price of 106, can sell its old machine now for 83, old machine has variable manufacturing costs of 36, 000 per year. The new machine will reduce variable manufacturing costs by 14, .
WhatsApp: +86 18203695377WEBMonster Beverage is considering purchasing a new canning machine. This machine costs 3, 500, 000 up front. Required return = % What is the value of Year 3 cash flow discounted to the present? Jennifer So that is the presentday value of expected cash flow 3 years from now?
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