Question: please help. each screenshot is a separate and different practice question. take your time. will give good high rating and feedback The Hub Store at

please help. each screenshot is a separate and different practice question. take your time. will give good high rating and feedback

please help. each screenshot is a separate and different practice question. takeyour time. will give good high rating and feedback The Hub Storeat a university in eastern Canada is considering purchasing a self-serve checkout

The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout machine similar to those used in many grocery stores and other retail outlets. Currently the university pays parttime wages to students totalling $58,000 per year. A self-serve checkout machine would reduce part-time student wages by $38,000 per year. The machine would cost $300,000 and has a 10year useful life. Total costs of operating the checkout machine would be $5,600 per year, including maintenance. Major maintenance would be needed on the machine in ve years at a total cost of $10,600. The salvage value of the checkout machine in 10 years would be $43,000. The CCA rate is 25%. Management requires a 10% aftertax return on all equipment purchases. The company's tax rate is 30%. Required: 1. Determine the beforetax net annual cost savings that the new checkout machine will provide. 2-a. Using the data from (1) above and other data from the exercise, Compute the checkout machine's net present value. (Hint Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Negative value should be indicated with minus sign.) _:I 2-b. Would you recommend that the machine be purchased? 0 Yes 0 No Rosman Company has an opportunity to pursue a capital budgeting project with a ve-year time horizon After careful study, Rosman estimated the following costs and revenues for the project: Cost of new equipment $ 420,000 Sale of old equipment no longer needed 5 30,000 Annual cash inflows $ 135,000 working capital needed 5 65,000 Equipment maintenance in each of Years 3 and 4 $ 20,000 The new piece of equipment mentioned above has a useful life ofve years and zero salvage value. The old piece of equipment mentioned above would be sold at the beginning of the project and there would be no gain or loss realized on its sale Rosman uses the straight-line depreciation method for nancial reporting and the CCA rate for tax purposes is 20%. The company's tax rate is 30% and its aertax cost of capital is 12%. When the project concludes in ve years the working capital will be released for investment elsewhere within the company. Required: 1. Compute the net present value of this investment opportunity. (Round your PV factor to 4 decimal places and all the other calculations to nearest whole dollar.) :| 2. Would you recommend that the contract be accepted? 0 Yes 0 No The Perth Mining Company owns the mining rights to several tracts of land on which metals have been found in the past. The amount of precious metals on some of the tracts is somewhat marginal, and the company is unsure whether it would be profitable to extract and sell the precious metals that these tracts contain. Tract 420 is one ofthese, and the following information about it has been gathered: Investment in equipment needed for extraction work $400,000 working capital investment needed 5 55,000 Annual cash receipts from sale of precious metals, net of related cash operating expenses (before taxes) S 85,000 Cost of restoring land at completion of extraction work 5 45,000 The precious metals in Tract 420 would be exhausted after eight years of extraction work. The equipment would have a useful life of 12 years, but it could be sold for only 20% of its original cost when extraction was completed. For tax purposes. the company would depreciate the equipment using a CCA rate of 20%. The tax rate is 30%, and the company's aftertax discount rate is 12%. The working capital would be released for use elsewhere at the completion of the project Required: 1. Compute the net present value of Tract 420. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations and round your nal answer to the nearest dollar amount. Negative value should be indicated with minus sign.) -: 2. Would you recommend that the investment project be undertaken? 0 Yes O No

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