Order Principles Of Accounting Assignment

Order Principles Of Accounting Assignment
LO 11.1Bob’s Auto Repair has determined that it needs new lift equipment to acquire more
business opportunities. However, one or more alternatives meet or exceed the minimum
expectations Bob has for the new lift equipment. As a result, what type of decision should Bob
make for his company?
EA2.
LO 11.1In practice, external factors can impact a capital investment. Give a current external
factor that may currently impact or cause instability of capital spending either here or abroad.
EA3.
LO 11.2If a copy center is considering the purchase of a new copy machine with an initial
investment cost of $150,000 and the center expects an annual net cash flow of $20,000 per year,
what is the payback period?
Order Principles Of Accounting Assignment
LO 11.2Assume a company is going to make an investment of $450,000 in a machine and the
following are the cash flows that two different products would bring in years one through four.
Which of the two options would you choose based on the payback method?
EA5.
LO 11.2If a garden center is considering the purchase of a new tractor with an initial investment
cost of $120,000, and the center expects a return of $30,000 in year one, $20,000 in years two
and three, $15,000 in years four and five, and $10,000 in year six and beyond, what is the
payback period?
EA6.
https://openstax.org/books/principles-managerial-accounting/pages/11-1-describe-capital-investment-decisions-and-how-they-are-applied