« previous next »

Author Question: Creighton Industries is considering the purchase of a new strapping machine, which will cost ... (Read 35 times)

craiczarry

  • Hero Member
  • *****
  • Posts: 527
on: Jul 10, 2018
Creighton Industries is considering the purchase of a new strapping machine, which will cost
  150,000, plus an additional 10,500 to ship and install.
 
  The new machine will have a 5-year useful
  life and will be depreciated to zero using the straight-line method. The machine is expected to
  generate new sales of 45,000 per year and is expected to save 16,000 in labor and electrical
  expenses over the next 5-years. The machine is expected to have a salvage value of 20,000.
  Creighton's income tax rate is 35. Creighton uses a 12.5 discount rate for capital budgeting
  purposes. What is the machine's NPV?
  A) 22,153 B) 29,888 C) 27,894 D) 25,062

Question 2

The primary sources of collateral for secured loans are accounts receivable and inventory.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


Pariscourtney

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Elle and associates investigated the cost to Datura wrightii of producing sticky leaf trichomes. Elle and associates investigated the cost to Datura wrightii of producing sticky leaf trichomes.
Sweat machine Sweat machine
James A. Garfield lies mortally wounded. After failing to locate the bullet, surgeons called in Alex James A. Garfield lies mortally wounded. After failing to locate the bullet, surgeons called in Alex
Cost Savings with an EHR System Cost Savings with an EHR System
Does It Cost More to Eat Healthy? Does It Cost More to Eat Healthy?
Cost of Copying for the Follower Country Cost of Copying for the Follower Country
Video: Pericarditis

For a complete list of videos, visit our video library