Beam Company, which is planning to spend P135,000 for a new machine, to be depreciated on a straight line basis over 6 years with no salvage value. The related cash flow from operations, net of income taxes, is expected to be P25,000 a year for each of the first 3 years and P20,000 for the next 4 years. The payback period is years
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- The NUBD Co. is planning to purchase a new machine. The payback period will be 6 years. The cash flow from operations, net of income taxes, will be P20,000 a year for each of the first three years of the payback period and P30,000 a year for each of the last three years of the payback period. Depreciation of P15,000 a year will be charged to income for each of the six years of the payback period. How much will the machine cost?NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over a five year period with no salvage value. The related cash flow from operations, net of income taxes, is expected to be P40,000, a year. Assume that NUBD’s effective income tax rate is 40% for all years.What is the payback period?The NUBD Co. is planning to purchase a new machine for P300,000. The payback period is expected to be five years. The new machine is expected to produce cash flow from operations, net of income taxes, of P70,000 a year in each of the next three years and P50,000 in the fourth year. Depreciation of P50,000 a year will be charged to income for each of the five years of the payback period. What is the amount of cash flow from operations, net of taxes, that the new machine is expected to produce in the last (fifth) year of the payback period?
- APJ, Inc. is planning to purchase a new machine that will take six years to recover the cost. The new machine is expected to produce cash flow from operations, net of income taxes, of P4,500 a year for the first three years of the payback period and P3,500 a year of the last three years of the payback period. Depreciation of P3,000 a year shall be charged to income of the six years of the payback period. How much shall the machine cost? * A. P12,000 B. P18,000 C. P24,000 D. P36,000The Janna Company is planning to purchase a new machine. The payback period will be six years. The cash flow from operation , net of income taxes, will be P20,000 a year for each of the first three years of the payback period and P30,000 a year for each of the last three years of the payback period. Depreciation of P15,000 a year will be charged to income for each of the six years of the payback period. How much will the machine cost?Martin Corporation is considering an investment in new equipment costing $155,000. The equipment will be depreciated on a straight-line basis over a five-year life and is expected to generate net cash inflows of $45,000 the first year, $65,000 the second year, and $90,000 every year thereafter until the fifth year. What is the payback period for this investment? The equipment has no residual value OA 3.22 years OB. 1.58 years OC. 4.22 years OD. 2.29 years CKIE
- Henerhiya Co. is planning to buy a machine costing P84,000 to be depreciated on the straight-line method basis over 10 degrees years life. The related cash flow from operations, net of income taxes, is expected to be P10,000 a year for each of the first 6 years and P12,000 for the next 4 years. It was also estimated that the salvage value of the project at the end of year 1 to be P60,000 and decreases by P5,000 each year thereafter, provided further that at the end of 10 years, the machine has no salvage value. Compute the payback bailout period in years.NUBD Co. purchase a machine for P180,000, which will be depreciated on the straight-line basis over a five year period with no salvage value. The related cash flow from operations, net of income taxes, is expected to be P45,000, a year. Assume that NUBD’s effective income tax rate is 40% for all years.What is the accounting rate of return on the initial increase in required investment?Blue Spruce Company is considering investing in new equipment that will cost $1,433,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $25,300 over its useful life. Depreciation expense, using the straight-line rate, is $143.300 per year. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 15.2.) Cash payback period years
- Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of 3 years and no salvage value. The expected cash inflow is $24,000 annually. Bassinger Company has a cost of capital of 12%. Given that the present value of $1 after 3 periods at 12% is 0.71178, and the present value of an annuity for 3 periods at 12% is 2.40183, the profitability index is: 000 0.04 1.96 1.04 0.28 0.96ATV is costs P90,000. Its estimated scrap value is P10,000 after 8 years. Solve for the constant depreciation per yearld) with 11% interest rate.Use Sinking Fund MethodMerigold company is considering investing in new equipment that will cost $1,417,000 with a 10-year useful life. The new equipment is expected to produce annual net income at $63,700 over its useful life. Depreciation expense, using the straight-line rate is $141,700 per year. Compute the cash pay back period. (Round answer to one decimal place, e.g. 15.2.)