A company invests $175,000 in plant assets with an estimated 25-year service life and no salvage value.
Question:
A company invests $175,000 in plant assets with an estimated 25-year service life and no salvage value. These assets contribute $28,000 to annual net income when depreciation is computed on a straight-line basis. Compute the payback period and explain your computation.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
The payback period is a financial metric used to determine the time it takes for an investment to ge...View the full answer
Answered By
Morris Maina
I am a professional teaching in different Colleges and university to solved the Assignments and Project . I am Working more then 3 year Online Teaching in Zoom Meet etc. I will provide you the best answer of your Assignments and Project.
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Question Posted:
Students also viewed these Business questions
-
A company invests $800,000 in plant assets with an estimated 10-year service life and no salvage value . These assets contribute $120,000 to annual net income when depreciation is computed on a...
-
Rico Petricelli Industries invests $960,000 in plant assets with an estimated 10-year service life and no salvage value. These assets contribute $64,000 to annual net income when depreciation is...
-
A company invests $100,000 in plant assets with an estimated 20-year service life and no salvage value . These assets contribute $10,000 to annual net income when depreciation is computed on a...
-
Relationship of the Balanced Scorecard to activity-based costing Explain how an activity-based costing model can be linked to a Balanced Scorecard approach.
-
What is the required journal entry for each of the following transactions? a. 25,000 shares of no par value shares are issued for $30 per share. b. 25,000 shares of $0.10 par value shares are issued...
-
Consider an assembly line such as the burrito assembly line at Chipotle Mexican Grill. During slow times of the day, one server can handle assembly, but during very busy times, having many servers...
-
Founded in 1966 as a trader of oil and oil products, Vitol is a company with no external shareholders. All shareholders are also employees. It is a conglomerate company of energy companies that work...
-
This comprehensive problem involving Miller Design Studio covers all the learning objectives in this chapter and in the chapters on measuring business transaction and measuring business income. To...
-
We read about Language and Authority in grammar and how some groups try to control language. Identify one such group and explain how and why they try to control language. Do you think such efforts to...
-
Hotel DelRay is located at the heart of the city of Brussels, in Belgium. Brussels is a major hub for international politics, a home for several international organizations and diplomats, and a...
-
The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated as investment centers. Budget information for the coming year for these three...
-
A company is trying to decide whether to go ahead with an investment opportunity that costs $60,000. The expected incremental cash inflows are $80,000, while the expected incremental cash outflows...
-
What term is given to the difference between sales revenue and the cost of goods sold?
-
New Star Georgia was a franchisee of New Star California, a residential and commercial real estate and investment business. The franchise agreement granted New Star Georgia the exclusive right in...
-
answer theses question. 1. What are the uses of IRR? 2. What are the problems with using an internal rate of return? 3. How can you use IRR when managing personal finance? 4.please summarize you tube...
-
Discuss the challenges and potential solutions in the development and implementation of a practical and efficient zero-emission propulsion system for large-scale marine vessels, considering the...
-
Fly High project has the following cash flows in the next 5 years: $33,700, $51,870, $62,050, $59,710, and $42,650. The initial cost is $144,480. The project's NPV is assuming a discount rate of 7.8%?
-
The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales Costs $4,400 Assets 3,470 $15,200 Debt Equity $11,000 4,200 Net...
-
Write down what you regard as the top five most important questions for which you need answers.
-
Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment...
-
The accounting staff of Wyoming Outfitters, Inc., has assembled the following information for the year ended December 31, 2011: Cash and cash equivalents, Jan. 1 . . . . . . . . . . . . . . . . . . ....
-
Indicate how you would expect the following strategies to affect the companys net cash flows from operating activities (1) In the near future and (2) In later periods (after the strategys long-term...
-
Indicate how you would expect the following strategies to affect the companys net cash flows from operating activities (1) In the near future and (2) In later periods (after the strategys long-term...
-
1. Calculate Monthly payment of leasing car and financing the car: a) Which option would be economically better for Henry? Which option would be economically better if the residual value was $15,500...
-
Would it be possible to provide a well argued, realistic model that matches the proposed take-over price of $107.50. Is this is relevant?
-
Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost Fair...
Study smarter with the SolutionInn App