User Account

All Pages

Prepare consolidation journal entry at the date

Assignment Help Finance Basics
Reference no: EM13871211

PART 1

Please solve both the questions using MS EXCEL

Question 1

A firm whose cost of capital is 10% is considering two mutually exclusive projects X and Y, the details of which are:

Year                 Project X                     Project Y

Cost                  0                       Rs. 70,000                   Rs. 70,000

Cash Inflows        1                      Rs. 10,000                   Rs. 50,000

                        2                      Rs. 20,000                   Rs. 40,000

                        3                      Rs. 30,000                   Rs. 20,000

                        4                      Rs. 45,000                   Rs. 10,000

                        5                      Rs. 60,000                   Rs. 10,000

Compute the Net Present Value at 10%, Profitability Index, and Internal Rate of Return of the two projects.

Reference no: EM13871211

Questions Cloud

About the cyclical phase of the stock market : Common stock mutual fund manager, Mr. Jim, forms expectations about the cyclical phase of the stock market when actively managing his fund portfolio. In what situation might Mr. Jim want to lower the average beta of the fund that he manages? Explain ..
Finance the purchase of additional plant and equipment : Company X is considering issuing 10,500 new shares to help finance the purchase of additional plant and equipment. If Mr. Jim wishes to maintain his proportionate ownership in the company, what is the additional dollar amount he will be required to m..
What are the possible consequences of longer credit periods : When customers experience economic difficulties, companies consider extending longer credit periods. What are the possible consequences of longer credit periods on Sales, Accounts Receivable, Allowance for Doubtful Accounts, Net Income, and the recei..
Seaver company sold land with a book value : On January 1, 2010, Seaver Company sold land with a book value of $23,000 to Bench Company. Bench Company paid $15,000 down and signed a $15,000 non interest bearing note, payable in two $7,500 annual installments on December 31, 2010 and 2011.
Prepare consolidation journal entry at the date : Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The statements of financial position of the companies immediately after the acquisition are provided below. All assets have been reported following fair value.
Concept of market efficiency fit into this distinction : Distinguish between the intrinsic price of a share of common stock and its current market price.   Why might they differ? How does the concept of market efficiency fit into this distinction? (This question is related to question 7-4 above. Note that ..
What basis of accounting should be used in fund : What basis of accounting should be used in fund level accounting for each of the following funds and why?General Fund Special Revenue Funds Enterprise Funds
What are the disadvantages of write off method accounts : Describe how (and when) the direct write-off method accounts for uncollectible accounts. What are the disadvantages of this method?
Determine the capacitance : Problem: A 50kW load operates from a 60 Hz 10 kV line with a power factor of 60% lagging. Determine the capacitance that must be placed in parallel with the load to achieve a 90% lagging power factor.

Reviews

Write a Review

Finance Basics Questions & Answers

  What are annual credit sales

Vang, Inc., has an average collection period of 27 days. It's average daily investment in receivables is $86,000. What is the receivables turnover? What are annual credit sales?

  Which one of the following occurred over the last year

Suppose you could buy 1,320 South Korean won or 78 Pakistani rupees last yer for $1. Today, $1 will buy you 1,318 won or 80 rupees. Which one of the following occurred over the last year?

  Find the average collection period for a year

Find the average collection period for a year that is not on the balance sheet? I have the credit sales total, and days Ina period, but I am having troubles figuring out the average amount of accounts receivables for the year I have to solve for...

  Your company has been approached to bid on a contract to

your company has been approached to bid on a contract to sell 4300 voice recognition vr computer keyboards a year for

  Weighted average cost of capital calculation is based on

natural food nf limited is considering setting up a new farm. it is expected that the farm will generate annual

  Provide justifications for increase to discretionary account

From the e-Activity, provide three justifications for an increase to the four highest discretionary spending accounts.

  What are the pros and cons of setting a target rating

Some companies' debt-equity targets are expressed not as a debt ratio, but as a target debt rating on a firm's outstanding bonds. What are the pros and cons of setting a target rating, rather than a target ratio? Please explain both and provide ad..

  Te bonds willbe sold today at a price of 82645 if the

claus amp co. is planning a zero coupon bond issue that hasa par value of 1000 and matures in 2 years. the bonds

  Nature of strategic planning

In a 250-300 word post, answer the following questions: What is strategic planning? How does it differ from other forms of planning? Why is the strategic planning process important to entrepreneurs in starting a new venture?

  What opportunity cost of capital should stern alumni use

What opportunity cost of capital should Stern Alumni use for evaluating? Whether to buy the copper mine? Use a risk free rate of 7% and a market risk premium (rm - rf) of 8%.

  Time value comparisons of single amounts-in exchange for a

time value comparisons of single amounts-in exchange for a 20000 payment today a well known company will allow you to

  Annual coupon interest rate

Outstanding bonds have a $1,000 par value and will mature in 5 years, yield to maturity is 9%-Find out the bonds's annual interest rate?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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