{"id":127831,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/acct-2120-vilas-company-is-considering-a-capital-investment"},"modified":"2017-08-16T06:22:53","modified_gmt":"2017-08-16T06:22:53","slug":"acct-2120-vilas-company-is-considering-a-capital-investment","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/acct-2120-vilas-company-is-considering-a-capital-investment\/","title":{"rendered":"ACCT 2120-Vilas Company is considering a capital investment"},"content":{"rendered":"<div class=\"the_content_wrapper\">\n<p>ACCT 2120-Vilas Company is considering a capital investment<br \/> Vilas Company is considering a capital investment of $190,300 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $14,800 and $49,900, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment.<\/p>\n<p>(a) Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.50.)<\/p>\n<p>Cash payback period years<\/p>\n<p>Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.50.)<\/p>\n<p>Annual rate of return %?<\/p>\n<p>?(b) Using the discounted cash flow technique, compute the net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer for present value to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>ACCT 2120-Vilas Company is considering a capital investment Vilas Company is considering a capital investment of $190,300 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is <a href=\"https:\/\/www.benedictsol.com\/blogs\/acct-2120-vilas-company-is-considering-a-capital-investment\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-127831","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/127831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=127831"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/127831\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=127831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=127831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=127831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}