Skip to content

The goto resource for studying materials

Home
Accounting
Information Technology
Political General Science
Performance Arts

Process Management

June 20, 2017 mfadmin Managerial Accounting

Average Rating

0 out of 5 stars. 0 votes.

You must log in to submit a review.

Process Management

how the business is organized with chains of commands

Post navigation

Previous Post:“Carlson Manufacturing has some equipment that needs to be rebuilt or replaced. The following information has been gathered relative to this decision: Present Equipment New Equipment Purchase cost new $50,000 $48,000 Remaining book value $30,000 – Cost to rebuild now $25,000 – Major maintenance at the end of 3 years $ 8,000 $ 5,000 Annual cash operating costs $10,000 $ 8,000 Salvage value at the end of 5 years $ 3,000 $ 7,000 Salvage value now $ 9,000 – Carlson uses the total-cost approach and a discount rate of 12% in making capital budgeting decisions. Regardless of which option is chosen, rebuild or replace, at the end of five years Carlson Manufacturing plans to close its domestic manufacturing operations and to move these operations to foreign countries.106. If the new equipment is purchased, the present value of all cash flows that occur now is: a. $(48,000). b. $(39,000). c. $(41,000). d. $(37,000).”,”2If the new machine is purchased the present value of all the cash flows that occur now will equal the price of the new machine minus the selling price of the old machine.$48,000 – $9,000 = $ 39

Next Post:cost behaviour

Search

Search for:

Study Topics

70-410 (11) accounting (2573) act305 (69) act460 (8) american (18) Anatomy (692) Biology Terms (238) Biology Test (207) cost accounting (8) Critical Thinking (134) database (8) db (1480) false: (12) finance and accounting (276) geography (2589) history (18) hst201 (18) Information Technology (10) intermediate (35) introduction networks (12) IT (10) its315 (12) its320 (10) its400 (8) its410 (8) IT Terms (67) java (1458) management (2789) managerial (79) medical terms (1000) Microcell Biology (102) networking (35) networks (521) organizaitonal management (146) PgM (100) pharmacy (2218) principles (10) programming (10) project management (3245) questions (35) surgery (2775) theatre (410) week (10) week 2 (13) week 3 (10)

Powered by WordPress and Poseidon.