An investment in Machinery will yield annual cash earnings of P 12,000. The investment can be recovered in 4 years. the life is 10 years. How much is the annual net income of the investment? P 7,200 P 12,000 P 16,800 P 19,200

An investment in Machinery will yield annual cash earnings of P 12,000. The investment can be recovered in 4 years. the life is 10 years. How much is the annual net income of the investment? P 7,200 P 12,000 P 16,800 P 19,200

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

See similar textbooks

Related questions

Q: SKIP THIS IF YOU ALREADY ANSWERED THIS. I WILL ONLY UPVOTE IF IT IS TYPEWRITTEN. FOLLOW THE…

A: Dear student, Since you have asked multiple sub-parts, we will answer first three subparts as per…

Q: A) if you deposit 4000$ into an account paying 6% annual compound interest monthly, how much will be…

A: Lets understand the basics. Compound interest is a interest which is compound on the principal as…

Q: Job Number Materials Requisition Slips Labour Time Tickets 429 $2,500 $1,900 430 3,500 3,000 431…

A: Job-order costing is a method of cost accounting, in which cost is allocated and accumulated for…

Q: The mayor is considering a housing relief program that will reduce the market rate for housing by…

A: Consumer Demand- Demand is simply defined as a consumer's (or consumers') ability to pay for the…

Q: The following balances as of the end of 2009 for the partnership of ping, pong, and pang, together…

A: Capital account of partner refers to the distinct account which states equity within the partnership…

Q: an excerpt from trial balance of ABC company shows the following: accounts receivable 1,000,000…

A: A bad debt appears to be a cost incurred by a company when the repayment of previously issued credit…

Q: At 1 July 2019, the fair value of the non-controlling interest was $39 000 and SydMel Ltd adopts the…

Q: 37. Share warrants (from the bonds with detachable warrants) a.5,400 b.9,000 c.14,400 d.0…

A: (a) The share warrants with bonds is calculated below:- Share warrants =* Fair value of warrants *…

Q: Accounts receivable turnover and days' sales in receivables For two recent years, Robinhood Company…

A: In order to determine the accounts receivable turnover ratio, the average accounts receivable are…

Q: The following trial balance was extracted from the books of R traders at the close of business on 28…

A: 1. Income Statement - The first statement shows the income earned and loss incurred by the…

Q: ABC is Limited Liability Retailer Company. The following transactions took place during 2021…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Accounts Payable had a balance of $18,200 at the beginning of the month. During the month, three…

A: Credit in accounts payable is added and debits are subtracted.

Q: Red Company allocates research and development costs to its three research facilities based on each…

A: Total Research & Development cost = $40,000,000 Total revenue = $250,000,000 Allocation rate =…

Q: If Pluto Company sold 3000 units at sales price of SR45. The variable cost per unit is SR25.…

A: Formula: Contribution margin = Sales price per unit - Variable cost Deduction of variable cost from…

Q: ! Required information [The following information applies to the questions displayed below.] Rebecca…

A: In case of accrual basis of accounting revenue and expenses are recognised in books of accounts as…

Q: This question is based on the following information: Sphinx Company is planning to invest in a…

A: Introduction: The payback period is the time it takes for an asset's net cash flows to return its…

Q: The management of Oriole Company is trying to decide whether it can increase its dividend. During…

A: Formula used: Company's free cash flow = Net cash provided by operating activities - Dividends paid…

Q: Research & Development. Edwards Corporation purchases a building for $2,000,000 which is to be used…

A: Research and development expenses (R&D) refers to those expenditure which are related to the…

Q: calculate samsam salary after deductions

A: Salary after deduction can be calculated by subtracting the total deductions claimed during the…

Q: Based on the graph, answer the first three questions

A: The answer is stated below: Answering the first question as there are multiple questions,…

Q: When you look at the organizational structure of ABC Inc., you notice that the Marketing department…

A: c) Functional

Q: In September, Numbers Incorporated sold 40,000 units of its only product for $339,000 and incurred a…

A: Formula: Total amount of variable costs in the flexible budget = Variable costs - Variable cost…

Q: Which of the following is not a question that can be answered with the cash flow statement? A. How…

A: Cash Flow Statement is one of the Financial Statements which shows the movement of cash in the…

Q: The Chart of Accounts for 5C's Computer Center appears below: 5C's Computer Center Chart of Accounts…

A: Journal Entry The basic process of accounting work is first to make the required journal entry for…

Q: Follow Accrual method Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for…

A: Introduction: Accrual method of Accounting: Recording of a business transactions irrespective of…

Q: Use the 2021 tax rates to find Social Security and Medicare deductions for the following problems.…

A: Deductions are defined as those payments made by a taxpayer during a specific period that can be…

Q: Moving estion 12 On March 1, a customer's account balance of $32,300 was deemed to be uncollectible.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: Employee income taxes withheld Cash balance at first state Bank Cash overdraft at Harbor Bank…

A: Answer is option a) 8,100,000

Q: Apollo reported the following in its 2021 financial statements: 2021 Sales P420,000 Cost of goods…

A: formula used: Inventory turnover = Cost of goods sold / Average inventory

Q: fter the realization of non-cash assets, the following account balances appeared in the genera…

A: Realization Account: When the firm dissolved then a new account is opened that is known as…

Q: North, South, East and West are partners with capital balances of P2,000, P50,000, P50,000 and…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: If a business had sales of $3,894,000 and a margin of safety of 20%, the break-even point in sales…

A: Formula: Break even point in sales dollars = Sales value x ( 100 - Margin of safety )

Q: a) XYZ Ltd. Produces three products A, B and C for which the standard costs and quantities per unit…

A: ABC method allocates the overhead cost on the basis of the actual consumption. Whereas, the…

Q: O'Shaughnessy Inc. sells a product for $90 per unit. The variable cost is $65 per unit, while fixed…

A: Introduction: Break even sales unit: The sales level where there is no profit nor loss to the units…

Q: On January 1, 20x1, Pine Corp acquired 75% interest in Sine Inc. for P2,400,000. On that date Sine…

A: Non-controlling interests, also known as minority interests, are ownership rights in which…

Q: Soon after December 31, 2019, the auditor requested a depreciation schedule for trucks of Jarrett…

A: Depreciation Depreciation is the decrease or fall in the value of tangible assets until they reach…

Q: A company’s draft financial statements for 2021 showed a profit of $630,000. However, the trial…

Q: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual…

A: Formulas: Interest amount = Notes amount x Interest rate x Time period

Q: Prepare Journal entries? A. July 1, issued common stock for cash, $15,000 B. July 15, purchased…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: The following transactions took place in May 2021. May 1-5C's began the business by investing P…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: Item No. 22 is based on the following information: sand and IS 03 95 2011 mat After operating for…

A: Note: As per our guidelines, only the first question should 22. The net assets will be shared…

Q: Research & Development. Edwards Corporation purchases a building for $2,000,000 which is to be used…

A: Research and Development (R&D) Expenses are the direct expenditure relating to developing,…

Q: 32.3A show the journal entries needed to correct the following errors: (a) Purchases £1,410 on…

A: The journal entries are prepared to record the day to day transactions on the regular basis.

Q: ! Required information [The following information applies to the questions displayed below.] Danni…

A: Partnership: - When two or more persons come together to agree on setting up the business, run it…

Q: John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In…

A: Computation of Taxable Income Description Amount($) Salary 181,000…

Q: Using all the concepts discussed In this class, develop/create a tax system that can be used by a…

A: Answer:- Tax meaning:- Tax is a sum of money that a government makes citizens to pay based on their…

Q: A cement kiln with production capacity of 200 tons per day (24 hours) of clinker has at its burning…

A: Answer - Given, Particular Local Bricks Imported bricks Cost P30,000 P25,000 Life 5…

Q: Question 3 of 43 Fill in the blanks La Pagayo Corporation commenced business operations in calendar…

A: The MCIT is 1%% of the gross income of the corporation at the end of the taxable year. Any excess of…

Q: Fill in the blanks La Pagayo Corporation commenced business operations in calendar year 2001. It is…

A: For the year 2006, Normal Corporate Income Tax {NCIT} = 130,000 Minimum Corporate Income Tax {MCIT}…

Q: Moorcroft Company's budgeted sales and direct materials purchases are as follows: Budgeted Sales…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Question

An investment in Machinery will yield annual cash earnings of P 12,000. The investment can be recovered in 4 years. the life is 10 years.

How much is the annual net income of the investment?

P 7,200

P 12,000

P 16,800

P 19,200

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?
How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?
Calculate the future value of an investment if the annual interest rate is 9%, number of payments is 30, and each payment of $1000 is made at the end of the year. A. $102,893 B. $136,308 C. $108,212 O D. $98,234
An investment in Machinery will yield annual cash earnings of P 12,000. The investment can be recovered in 4 years. the life is 10 years. How much is the annual net income of the investment?a.7,200b.12,000c.16,800d.19,200
You are set to receive $2,190 annually (at the end of each year) forever with returns of 12.40% for the first 6 years and 4.30% thereafter. What is the current value of this investment? a. $17,661 b. $34,160 C. $28,389 d. $50,930 e. $25,257 x
Park Company is considering an investment of $31,500 that provides net cash flows of $13,200 annually for four years. What is the investment's payback period? Numerator: 1 1 Payback Period Denominator: II II = II = Payback Period Payback period 0