Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 30. the management of p corporation is considering

30. The management of P Corporation is considering purchasing equipment that would increase sales revenues...

60.1K

Verified Solution

Question

Accounting

image
30. The management of P Corporation is considering purchasing equipment that would increase sales revenues by $269,000 per year, and increase cash operating expenses by $156,000 per year. The equipment would cost $294,000, and have a 6-year life with no salvage value. The annual depreciation would be $49,000. The simple rate of return on the investment is closest to: A) 16.7% B) 21.8% C) 23.8% D) 38.4% 31. A corporation is considering purchasing equipment that would increase sales revenues by $298.000 per year, and increase cash operating expenses by $143,000 per year. The equipment would cost $712,000, and have an 8-year life with no salvage value. The annual depreciation would be $89,000. The simple rate of return on the investment is closest to: A) 9.3% B) 21.8% C) 22.1% D) 12.5% 32. The following data concern an investment project $180,000 ..$42,000 Annual net cash inflows Working capital required. Life of the project. Required rate of retur. Salvage value of the equipment.$70,000 $20,000 5 years 12% The working capital will be released for use elsewhere at the conclusion of the project s this project acceptable? Support your answer by showing the calculation of the project's net present alue

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is the manager’s responsibility regarding ethical financial reporting? Managers must consider ethics on a daily basis when...

Finance
Q

Thirty-four small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5...

Basic Math
Q

WK 3 ASS- BUS 307 Data Analysis Skills and Thinking Submit a paper of at least four...

Operations Management
Q

Membrane carbohydrates: What process results in glycolipids being located exclusively in the non-cytosolic monolayer of membranes? In plasma membranes,...

Biology
Q

In this project, you will collect data from real world to construct a multiple regression model....

Statistics
Q

A number of guests gather around a round table for a dinner. Between every adjacent pair...

Advance Math
Q

The following events apply to Equipment Services Inc. in its first year of operation: Acquired $60,000 cash...

Accounting
Q

4 Find the altitude at which the acceleration due to gravity is 25 of that...

Physics
Q

4 c y x 4 d y 4x 2 What is the equation for the...

Basic Math
Q

Identify a business that you are familiar with or have dealt with in the past...

Accounting
Q

Above this is all the information they have given me in the question. I need...

Accounting
Q

1).Consider a zero coupon bond with 10 years maturity with face value $100. The internal...

Finance