Question Details

(Solution Download) A company is planning to purchase a machine that will cost $155,000, have a seven-year life, and be


 

 

 

 

 

 

 

 

 

 

A company is planning to purchase a machine that will cost

 

$155,000, have a seven-year life, and be depreciated using the

 

straight-line method with no salvage value. The company expects to

 

sell the machine's output of 4,000 units evenly throughout each

 

year. A projected income statement for each year of the asset's

 

life appears below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Sales

$212,000

 

  

 

  Costs:

 

  Manufacturing

$98,000

 

  Depreciation on machine

25,000

 

  Selling and administrative expenses

 

70,000

 

 

(193,000)

 

 

  Income before taxes

$ 19,000

 

  

 

  Income tax (50%)

( 9,500)
  Net

 

income

 

$ 9,500   

 

 

  

 

 

 

 

 

 

 

What is the

 

payback period for this machine?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.000 year
8.160 years
16.320 years
4.493 years
10.000 years

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 08, 2020

PRICE: $15

Solution~000652147654121.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 08, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now