Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kingbird company is considering buying a machine f

Kingbird Company is considering buying a machine for $180000 with an estimated life of 10...

70.2K

Verified Solution

Question

Accounting

imageimage

Kingbird Company is considering buying a machine for $180000 with an estimated life of 10 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $12000 each year. The cash payback period on this investment is O 1.50 years. O 7.50 years. O 10.00 years. O 6.00 years. Use the following table, Period 1 Present Value of an Annuity of 1 8% 9% 10% 0.926 0.917 0.909 1.783 1.759 1.736 2.577 2.531 2.487 3 A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $380000 and is expected to generate cash inflows of $160000 at the end of each year for three years. The net present value of this project is O $404960. O $80000. O $24960. $40496

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students