Memphis Co is considering purchasing a machine for $83,200 that will increase cash inflows by $40,000 in the first year, $30,000 the second year, and $25,000 the third year. The machine will have no residual value. The minimum rate of return is 10 percent. The present value factors, at 10 percent, for the three years are 0.909, 0.826, and 0.751, respectively. Using the above information for
Memphis, the machine's actual rate of return is
A) negative.
B) greater than 10 percent.
C) less than 10 percent.
D) 10 percent.
C
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Adorn Furniture manufactures a small table and a large table. The small table sells for $900, has variable costs of $540 per table, and takes 10 direct labor hours to manufacture. The large table sells for $1500, has variable costs of $980, and takes eight direct labor hours to manufacture. Calculate the contribution margin per direct labor hour for the small table.
A) $360 per direct labor hour B) $52 per direct labor hour C) $36 per direct labor hour D) $54 per direct labor hour
When are period costs counted as inventory?
A. Never. B. After products are completed, but before they are sold. C. After products are sold. D. Before products are sold.
Radiant Corp received $40,000 cash in January 2012 for the services to be provided in the future. Which of the following accounts are affected by this transaction?
a. Cash and Service Revenue b. Cash and Unearned Revenue c. Unearned Revenue and Service Revenue d. Service Revenue and Accounts payable
Which of the following is true of express warranties?
A) A manufacturer is liable for express warranties made by wholesalers. B) A retailer is liable for the express warranties made by manufacturers of goods it sells. C) A retailer is not allowed to make warranties on manufacturer goods. D) A manufacturer is obligated by law to make an express warranty on all its goods.