e12-8 - Name: Instructor: Managerial Accounting, 3rd...

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FileName: 11add3f1371f94ccab3c916119c7c8a13e6c6a9b.xls, Tab: Exercise E12-8, Page 1 of 2, 12/28/2011, 19:01:46 Name: Date: Instructor: Course: $180,000 in additional productive facilities. The new machinery is expected to have a useful life of 6 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net cash flows are expected to be $20,000 and $50,000 respectively. Morgan has a 15% cost of capital rate which is the required rate of return on the investment. Cash payback period: Amount ÷ Amount = Formula years. Annual rate of return: Amount ÷ ( Amount ÷ Amount ) = Formula Item Amount Years PV Factor Present Value Item Amount Years PV Factor Present Value Title Amount Number PV Formula Formula Title Formula Title Formula Managerial Accounting, 3 rd Edition, by Weygandt, Kieso, and Kimmel Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse Exercise E12-8 , Morgan Company is considering a capital investment of
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This note was uploaded on 12/28/2011 for the course ACCT 221 taught by Professor Leonarda.bacon during the Winter '07 term at CSU Bakersfield.

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e12-8 - Name: Instructor: Managerial Accounting, 3rd...

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