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KATRIN_1 [288]
3 years ago
12

Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipmen

t is expected to produce annual net income of $90,000 over its useful life. Depreciation expense, using the straight-line rate, is $140,000 per year. Compute the cash payback period. (Round answer to 1 decimal places, e.g. 15.2.) Cash payback period Type your answer here
Business
1 answer:
Rom4ik [11]3 years ago
5 0

Answer:

6.1 y

Explanation:

Diamond Company

New equipment÷(Annual net income +Depreciation expense)

New equipment$1,400,000

Annual net income $90,000

Depreciation expense $140,000

$1,400,000 ÷ ($90,000 + $140,000)

=$1,400,000÷$230,000

= 6.1 y

Therefore the cash payback period will be 6.1 years

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Answer:

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Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skil
jek_recluse [69]

Answer:

Direct material quantity (efficiency) variance= $60,500 unfavorable

Explanation:

Giving the following information:

Standards:

Direct​ materials: 1 pound per​ unit; $ 11 per pound

Allen produced 2,000 units during the quarter.

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To calculate the direct material efficiency variance, we need to use the following formula:

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Answer:

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