× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
sukhmeet sukhmeet
wrote...
Posts: 319
Rep: 0 0
5 years ago
Cedile Trailer Supply has received three proposals for its new trailer assembly line. Information on each proposal is as follows:

Proposal XProposal YProposal Z
Initial investment in equipment$180,000$140,000$145,000
Working capital needed0015,000
Annual cash saved by operations:
   Year 160,00060,00060,000
   Year 260,00050,000   60,000
   Year 360,00035,00060,000
   Year 460,00010,00060,000
Salvage value end of year:
   Year 130,00025,00045,000
   Year 225,00020,00040,000
   Year 320,00015,00035,000
   Year 415,00010,00025,000
Working capital returned:0015,000
 
Required:
Determine each proposal's payback.
Read 40 times
2 Replies

Related Topics

Replies
wrote...
#1
5 years ago
 Proposal X payback = $180,000/$60,000 = 3.00 years

Proposal YCash SavingsSavings AccumulatedTo Be Recovered
Year 0$140,000
Year 1$60,000$ 60,00080,000
Year 250,000110,00030,000
Year 335,000145,0000

Proposal Y payback = 2 years plus $30,000/$35,000 or 2.86 years.

Proposal Z payback = ($145,000 + $15,000)/$60,000 = 2.67 years
sukhmeet Author
wrote...
#2
5 years ago
This calls for a celebration Person Raising Both Hands in Celebration
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1222 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 314
  
 14868
  
 266
Your Opinion
Where do you get your textbooks?
Votes: 372
Previous poll results: Who will win the 2024 president election?