Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a corporation is considering purchasing a machine

A corporation is considering purchasing a machine that will save $130,000 per year. The operating...

50.1K

Verified Solution

Question

Accounting

A corporation is considering purchasing a machine that will save $130,000 per year. The operating expenses including maintenance and depreciation, is $60,000 per year. The machine will be needed for five years, after which it will have a $20,000 value. Straight line depreciation will be used. If the purchase price is $220,000, what is the cash payback? its cost of capital is 10%. What is the NPV?

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

Calculate the pH for each of the following cases in the titration of 25.0 mL of...

Chemistry
Q

All the following are bad settings for preservation EXCEPT Extremely acidic soil environments Oxygen rich...

Biology
Q

Write a formula for the general term the nth term of the arithmetic sequence below...

Algebra
Q

5 Diagonalize the matrix below Describe the eigenspace of each eigenvalue 3 2 4 1...

Algebra
Q

Golden Corporation's current year income statement, comparative balance sheets, and additional information follow....

Accounting
Q

On January 3, 2016, Persoff Corporation acquired all of the outstanding voting stock of Sea...

Accounting
Q

Suppose that on January 6,2018 Excel Motors Paid $480,000,000 for its 35% investments in Coach...

Accounting
Q

Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January...

Accounting
Q

Determine the amount of cash paid to suppliers of merchandise for each of the nine...

Accounting
Q

Match each description with the system principle it best reflects

Accounting
Q

You find the following corporate bond quotes. To calculate the number of years until maturity,...

Finance
Q

Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and...

Accounting