Calculate the net present value of the project

Assignment Help Managerial Accounting
Reference no: EM132203288

A company is considering investing $50,000 in a project which will yield $5,670 per annum in perpetuity. The company's cost of capital is 9% per annum. Calculate the net present value of the project.

Reference no: EM132203288

Questions Cloud

Statements prepared for external reporting purposes : Explain why financial statements prepared for external reporting purposes should not be used for management performance evaluation.
Limitations of management accounting : What is (i) the scope and (ii) what are the limitations of management accounting in Managerial Accounting? Explain.
What is the best course of action : What is the best course of action when the management of an organization is inefficient and thus results in over-absorption of factory overheads? Explain.
Higher levels of demand and the probabilities : The estimated variable costs per unit at either of the higher levels of demand and the probabilities of them occurring are as follows:
Calculate the net present value of the project : The company's cost of capital is 9% per annum. Calculate the net present value of the project.
Reject the project from a financial perspective : The percentage increase in the annual cash outflow that would cause the company's management to reject the project from a financial perspective is
Marginal costing in managerial accounting : What are the main differences between absorption costing and marginal costing in Managerial Accounting?
Calculate the expected market value of the bond : The annual interest has just been paid for the current year. Calculate the expected market value of the bond at today's date.
Estimated annual net cash inflows : The percentage decrease in the estimated annual net cash inflows that would cause the company's management to reject the project from a financial perspective

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What was the companys cost per bale

What was the companys cost per bale and what was its revenue per bale? Should the price per bale be increased?

  Who are the stakeholders in the given situation

Who are the stakeholders in this situation? What are the ethical issues involved in this situation? What would you do if you were Steve Morgan?

  What would be the opportunity cost to the company

Focusing on a 10 percent required rate of return, what would be the opportunity cost to the company of using the ship in a Caribbean/Eastern Canada itinerary rather than a Caribbean/Alaskaitinerary?

  Compute each year''s current ratio

Selected comparative financial statements of Korbin Company follow.

  Vulcan flyovers offers scenic overflights of mount st

vulcan flyovers offers scenic overflights of mount st. helens the volcano in washington state that explosively erupted

  Best estimate of the total monthly fixed cost

Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume.

  Bad management-good management impacts

How does bad management impact your organization's success? How does good management impact your organization's success?

  Calculate the contribution margin for each product

Instead of producing the product mix in part (b), management wishes to use linear programming to find the profit-maximising mix. Write an LP model, and then use Excel's Solver to determine the optimum weekly mix and the resulting weekly profit ..

  Calculate the break-even point in units per period

Calculate the break-even point in units per period and the total costs per period at this output - Fixed costs per period $270,000

  List three likely costs in linda''s operation and indicate

List three likely costs in Linda's operation and indicate whether they are fixed or variable.

  Objectives of general purpose financial reports

BAO2203- Corporate Accounting Assignment. What is environmental reporting? Explain how reporting on environmental issues could be related to the objectives of general purpose financial reports (GPFR)

  Prepare a table that shows the total cost of fuel

Prepare a table that shows the total cost of fuel and unit cost for miles traveled ranging from 0 to 10,000 miles, using increments of 2,000 miles.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd