Considering an investment with an initial cost

Assignment Help Financial Management
Reference no: EM131064886

You are considering an investment with an initial cost of $295,000, which will be fully depreciated over three years. What is the average accounting return on this investment if it produces the following amounts of net income? Year 1, 2, 3 Net Income: $19,000, $16,800, $25,200

Reference no: EM131064886

Questions Cloud

Compute bond price : Compute Bond Price Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond?
Some of the underlying mathematical arguments : Question 1. In this question, I'm after intuitive answers rather than mathematical ones. Indeed, some of the underlying mathematical arguments are far beyond the scope of this course.
Expected future improvements in networking technologies : expected future improvements in networking technologies?
Defines the average accounting return : Which one of the following correctly defines the average accounting return?
Considering an investment with an initial cost : You are considering an investment with an initial cost of $295,000, which will be fully depreciated over three years. What is the average accounting return on this investment if it produces the following amounts of net income?
Prepare presentation about us constitution executive branch : As the PowerPoint presentation indicates very little is said in the U.S. Constitution about the executive branch relative to the legislative branch. How did that affect the power of each branch over the history of the U.S.?
Calculates triangle numbers by using a recursive function : calculates triangle numbers by using a recursive function
Optimistic about the prospects of the lease : Valuing an American Option J&B Drilling Company has recently acquired a lease to drill for natural gas in a remote region of southwest Louisiana and southeast Texas. The area has long been known for oil and gas production, and the company is optimist..
The profitability index decision rule : The Matterhorn Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 –$89,000 –$57,000 1 38,900 11,100 2 49,000 36,500 3 29,000 30,500. If the required return is 12 percent, ..

Reviews

Write a Review

Financial Management Questions & Answers

  Endorsement deal with a prominent sponsor

Mr. Smith signs a five-year endorsement deal with a prominent sponsor. Under this deal Hyun-Woo will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the p..

  Research to develop a new computer game

KADS, Inc., has spent $300,000 on research to develop a new computer game. The firm is planning to spend $100,000 on a machine to produce the new game. The firm has a tax rate of 39 percent, an opportunity cost of capital of 13 percent, and it expect..

  Which exotic options payoff is based on the average price

Which exotic option’s payoff is based on the average price over some period of time?

  Interest rate remains constant over entire period of time

Determine the current amount of money that must be invested at 14% nominal interest, compounded monthly, to provide an annuity of $11,500 (per year) for 6 years, starting 11 years from now. The interest rate remains constant over this entire period o..

  What is the total debt ratio

A firm has a long-term debt-equity ratio of 0.3. Shareholders equity is $.99 million. Current assets are $279,000, and the current ratio is 1.8. The only current liabilities are notes payable. What is the total debt ratio?

  What is the length of the days sales in inventory

Scribble, Inc. has sales of $92,000 and cost of goods sold of $76,000. The firm had a beginning inventory of $22,000 and an ending inventory of $24,000. What is the length of the days' sales in inventory? (Round your answer to 2 decimal places.)

  What is total opportunity cost for the class

Josh has decided to take a course at the local community college that could help him get a promotion at work. The course begins at 5 p.m. and goes until 9 p.m. on Monday nights. Josh normally works until 5 p.m. each day, but because of the drive time..

  How would you analyze and interpret the data?

How would you analyze and interpret the data?

  Prepare all entries required to properly record the sale

On April 1, 2014, West Company purchased $450,000 of 6.00% bonds for $467,750 plus accrued interest as an available-for sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2019. Prepare the journal entry on April 1..

  Part of a loan application evaluation process

Which of these may lawfully be used as part of a loan application evaluation process?

  How cognitive biases can affect management decisions

Using a diagram, illustrate how cognitive biases can affect management decisions and risk-taking. Provide a conceptual model for how data and risk analytics can affect risk-taking by the firm via its impacts on cognitive bias.

  Portfolio that is equally invested in the two assets

A stock has a beta of 1.3 and an expected return of 12.8 percent. A risk-free asset currently earns 4.3 percent. Required: (a) What is the expected return on a portfolio that is equally invested in the two assets?

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