Question: Alesi Corporation is considering purchasing a machine that would cost $752,800 and have a useful life of 12 years. The machine would reduce cash operating

Alesi Corporation is considering purchasing a machine that would cost $752,800

Alesi Corporation is considering purchasing a machine that would cost $752,800 and have a useful life of 12 years. The machine would reduce cash operating costs by $94,100 per year. The machine would have a salvage value of $107,230 at the end of the project. (Ignore income taxes.) Required: a. Payback period 8.00 years b. Compute the simple rate of return for the machine. (Round your intermediate answers to nearest whole dollar and your final answer to 2 decimal places.) Simple rate of return! 12.501%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Determine the force in member GJ of the truss and state if this member is in tension or compression. Units Used: kip = 103 lb Given: F1 = 1000 lb F2 = 1000 lb F3 = 1000 lb F4 = 1000 lb a = 10 ft =...

Please help me solve this question. Here is the complete question below. 4. Alesi Corporation is considering purchasing a machine that would cost $752,800 and have a useful life of 12 years. The...

Alesi Corporation is considering purchasing a machine that would cost $633, 080 and have a useful life of 9 years. The machine would reduce cash operating costs by $93, 100 per year. The machine...

Alesi Corporation is considering purchasing a machine that would cost $451,260 and have a useful life of 6 years. The machine would reduce cash operating costs by $98,100 per year. The machine would...

(Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $999,360 and have a useful life of 14 years. The machine would reduce cash operating costs...

Alesi Corporation is considering purchasing a machine that would cost $554,960 and have a useful life of 7 years. The machine would reduce cash operating costs by $99,100 per year. The machine would...

(Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $544,640 and have a useful life of 9 years. The machine would reduce cash operating costs...

(Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $554,960 and have a useful life of 7 years. The machine would reduce cash operating costs...

Alesi Corporation is considering purchasing a machine that would cost $907.280 and have a useful life of 15 years. The machine would reduce cash operating costs by $103,100 per year. The machine...

(Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $510,510 and have a useful life of 8 years. The machine would reduce cash operating costs...

(Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $387,430 and have a useful life of 6 years. The machine would reduce cash operating costs...

Meiji Company had the following outstanding loans during 2016 and 2017. General loans: 10,000,000 10% 15,000,000 12% Specific construction loan: 5,000,000 10% The entity began the construction of a...

An apartment property has net operating income of $1,350,000. Expenses were $900,000, including reserves for replacements of $100,000. Interest was $900,000, and depreciation was $225,000. What is...

If we write a function y as a power series y = n = 0 a n x n , which of the following would represent y ' ? y ' = n = 0 a n n x n y ' = n = 0 a n n ( n - 1 ) x n - 2 y ' = n = 0 a n x n y ' = n = 0 a...

In the article Choosing Innovation the focus is on how to effectively evaluation employee innovation proposals? How does your organization approach this challenge?

4. 4. Find f(r) if f"(x) = sin(-a) +2, where f(0) = 1 and f(1) = 1.

Vedantu Q9. Let a and B be the roots of equation.x -6x 2 = 0. Ifa, =a" - * Forn 21 then the value of d -2a, is equal to 2a, A 6 -6 C 3 D -3 JEE-Main 2015 SUBSCRIBE 214 MATH

Q8. The equation esin x- e-sin x - 4 = 0 has A infinite number of real roots JEE-Main 2012 B no real roots exactly one real root D exactly four real roots

In the following equation: CIo,- + 6H* +.X-+ Cr + 3H,0, then X is - (A) O (B) 6e (C) O: (D) Se

What type of rule allows a product to make up for its shortcomings on one dimension by excelling on another?

Was Sari bullied? Why or why not? Sari works in a large mining operation in Saskatchewan. She has been with the company for a number of years and is currently a heavy equipment operator. As the...

Is there anything else that should be part of the investigation? Sari works in a large mining operation in Saskatchewan. She has been with the company for a number of years and is currently a heavy...

What are the reasonable limits on loyalty to ones employer? Chantale Leroux works as a clerk for Avco Environmental Services, a small toxic-waste disposal company. The company has a contract to...