Compu, Pong Company is considering an investment expected to generate an average net income after taxes of $3,500 for three years. The company's required rate of return is 13 percent. The management predicts that this machine has a 10-year services life and a $100,000 salvage value, and, The Placque Company purchased an office building for $4,555,000. The system requires a cash payment of $125,374.60 today. The machine will cost $1,780,000 and is expected to produce a $195,000 after-tax net income to be re, A company can buy a machine that is expected to have a three-year life and a $33,000 salvage value. Jimmy Co. seeks to earn an average rate of return of 18% on all capital projects. 8 years b. A negative NPV would suggest that the project is not worth investing since it will probably yield to a loss while a positive NPV would suggest otherwise. c. Retained earnings. The investment costs $54,000 and has an estimated $7,200 salvage value. Compu, A company constructed its factory with a fixed capital investment of P120M. The following information applies to the questions displayed below.J Peng Company is considering an investment expected to generate an average net income after taxes of $2,800 for three years. The Galley purchased some 3-year MACRS property two years ago at Comp, Pang Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. Yea, A company projects an increase in net income of $40,000 each year for the next five years if it invests $500,000 in new equipment. earnings equal sales minus the cost of sales Furthermore, the implication of strategic orientation for . The investment costs $45,600 and has an estimated $8,700 salvage value. Equity method b. A company is investing in a solar panel system to reduce its electricity costs. Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. The company uses straight-line depreciation. The salvage value of the asset is expected to be $0. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Assume the company uses straight-line depreciation.
peng company is considering an investment expected to generate
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