Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you own an ice rink and are considering investing

You own an ice rink and are considering investing in a new high speed Zamboni...

60.1K

Verified Solution

Question

Accounting

You own an ice rink and are considering investing in a new high speed Zamboni (ice resurfacing machine). This would require an investment of $36,000 (the cost!). You are projecting that with the new Zamboni, additional related annual net cash inflows (with more available ice time for hockey leagues, skating parties, etc.) would be $8,000 annually. The Zamboni is expected to have a 6 year useful life with no salvage/residual value. (Percentage is 10%)

A. What is the expected simple (accounting) rate of return

B. What is the expected payback period?

C. What is the expected Net Present Value at your desired discount rate(10%)

D.What is the expected internal rate of return?

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

Given a standard normal distribution determine the following probability Round the solution to four decimal...

Statistics
Q

Bonaime, Inc., has 7.9 million shares of common stock outstanding. The current share price is $62.90,...

Finance
Q

The long-term success of a company is of particular interest to both internal and external users...

Accounting
Q

What mass of nitrogen is needed to fill an 855 L tank at STP?

Chemistry
Q

7 49 The interface of two liquids of densities p and 2p respectively lies at...

Physics
Q

Without using a calculator determine which of the following numbers is closest to sin 126...

Basic Math
Q

45 Solve for the unknown part of the triangle if it exists If c 74...

Calculus
Q

Cherry Cotta makes custom ordered clay pots for residential gardens. Below is cost information regarding...

Accounting
Q

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31...

Accounting
Q

in an adjustment lettwe saying "no" you maya) refund or appoligize to the customer b)...

Accounting
Q

Prepare the required adjusting journal entry for each situation as of December 31 of the...

Accounting
Q

View Policies Current Attempt In Progress Rivera Company has several processing departments. Costs charged to...

Accounting