Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. can you help me with this question and answer step

Can you help me with this question and answer step by step Company X...

80.2K

Verified Solution

Question

Accounting

image

Can you help me with this question and answer step by step

Company X manufactures birdhouses and have painted the houses partly manually. Company's growth prospects seem promising and the company is considering on investing to a new fully automatic paintmachine. \begin{tabular}{|l|r|r|} \hline & Annual costs & \\ \hline Now: & Painter's salary and expenses & 25000 \\ \hline & Maintainance & 5000 \\ & Old machine in balance sheet & 15000 \\ & Excpected value if the machine is sold & 12000 \\ & & \\ \hline & & 67500 \\ \hline New machine: & Price of the machine & 12000 \\ & Installation & 4000 \\ & Training & 5500 \\ & Upkeep (annually) & 750 \\ & Insurance (annually) & 0 \\ \hline & Disposal value & \\ \hline \end{tabular} Calculate the profitability of the investment by using IRR, NPV and PP The company will use discount factor of 12% Life cycle of the machine is 5 years

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

Which of the following describes the concerns some have about the war on terrorism?Select all...

Biology
Q

Itranscript Suppose you got 80 of the questions on your last test correct If there...

Basic Math
Q

At an altitude of 6000 m the standard temperature is 249 2 K and the...

Basic Math
Q

51 The prices at which a particular AP Statistics review book are sold at 92...

Statistics
Q

4 90 4 10 24 10 6 8 4 10 64 10 20 4 80

Statistics
Q

3 Divide using synthetic division Express the answer as 3x 2x x 4 x 1...

Algebra
Q

Here are incomplete financial statements for Donavan, Inc. Calculate the missing amounts DONAVAN,...

Accounting
Q

The balancing items in a financial planning model are variables that adjust to maintain the...

Accounting
Q

12. Lenows Drug Stores and Halls Pharmaceuticals are competitors in the discount drug chain store...

Accounting
Q

Look at chick-fil-a and McDonald's financial statements and discuss the similarities and differences in these...

Accounting
Q

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment...

Accounting
Q

3 1.43 points Calculate the covariance of the following ex-post returns. Express your answer as...

Finance