Description
Managerial Accounting 1B
Financial
and Managerial Accounting
Chapter 24
1.Exercise 241
Payback period computation; even cash flows L.O. P1
Compute the payback period for

a.

A new operating system for an existing

Payback period

b.

A machine costs $190,000, has a

Payback period


2.
Exercise 242 Payback period computation; uneven cash flows L.O.
P1
Wenro Company is considering the


Year

Year

Year

Year

Year

Total


Net cash flows


$

30,000



$

20,000



$

30,000



$

60,000



$

19,000



$

159,000




Compute the payback period for

Payback period

3.
Exercise 243 Payback period computation; decliningbalance
depreciation L.O. P1
A machine can be purchased for


Year

Year

Year

Year

Year


Net incomes


$

20,000



$

50,000



$

100,000



$

75,000



$

200,000




Compute the machineâ€™s payback

Payback period

4.
Exercise 244 Accounting rate of return L.O. P2
A machine costs $500,000 and is

Accounting rate of

5.
Exercise 246 Computing net present value L.O. P3
K2B Co. is considering the





Sales

$

150,000


Costs




Materials,


80,000


Depreciation


20,000


Selling


15,000






Total costs and


115,000






Pretax income


35,000


Income taxes (30%)


10,500






Net income

$

24,500







Compute the net present value of

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