Present value of gold mine

Assignment Help Accounting Basics
Reference no: EM13116191

How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants to have a 15% annual return on his investment and he can set up a sinking fund that earns 10% a year?

Reference no: EM13116191

Questions Cloud

Question regarding mortgage calculations : Mr. and Ms.Ostedt have just purchased an $80,000 home and made a 25% down payment. The balance can be amortized at 10% for 25 years.
Manufacturing overhead : Manufacturing overhead 131.50 per unit 108.50 per uni the best estimate of the total variable manufacturing cost per unit is:
Describe the benefits to the company : Describe the benefits to the company. New professional opportunities you believe this degree affords to employees
Comparison of speeds : A new computer is purchased that can do the same job in 5 days. How long would it take to do the job with both computers working on it?
Present value of gold mine : How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants to have a 15% annual return on his investment and he can set up a sinking fund that earns 10% a year..
Evidence that average purchase is different from liters : At the 0.05 level of significance, is there evidence that the average purchase is different from 10 liters? At the 0.05 level of significance, is there evidence that less than 20% of the motorists purchase super unleaded gasoline?
Annual adjusting entries : A review of the ledger of Greenberg Company at December 31, 2002, produces the following data pertaining to the preparation of annual adjusting entries.
Evaluate the magnitude of the apparent weight : Evaluate the magnitude of the apparent weight of a 84 kg astronaut 4500 km from the center of the Earth's Moon in a space vehicle accelerating toward the Moon at 3.1 m/s^2?
Evaluate the magnitude of the apparent weight : Evaluate the magnitude of the apparent weight of a 84 kg astronaut 4500 km from the center of the Earth's Moon in a space vehicle accelerating toward the Moon at 3.1 m/s^2?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Finding total cost by cumulative average-time method

What is the total cost of building 8 picture frames by a new employee using the cumulative average-time method?

  Definition of variable overhead efficiency variance

The part of the variable overhead budget variance due to the difference between actual hours required and standard hours allowed for work done is called the:

  Forecasting-weighted moving average

Using a weighted moving average with weights of 0.60, 0.30, and 0.10, find the July forecast. Using a simple three-month moving average, find the July forecast.

  Argument for or against abolishing estate taxes

Create an argument for or against abolishing estate taxes. Recommend an alternative to the current federal taxation system that you believe would be fair to corporations and partnerships.

  Preparation of a classified balance sheet

Preparation of a classified balance sheet-From the following data, prepare a classified balance sheet for Simon Company at December 31, 2006.

  Computing material price and quantity variances

Henry's is a chain of 45 coffee shops. The standard amount of ground coffee per cup is .75 ounces. During the month of October, the company sold 320,000 cups of coffee (reported via electronic cash registers), and the 45 shops reported using 15,80..

  Evaluating a potential bond purchase

Nellie is evaluating a potential bond purchase that the seller purchased 12 years ago for $4,000. The bond matures 8 years from today.

  Consolidation of cash-detailed solution-aedion company

Aedion Company owns control over Breedlove, Inc. Aedion reports sales of $300,000 during 2004 while Breedlove reports $200,000. Inventory costing $20,000 was transferred from Breedlove to Aedion (upstream) during the year for $40,000.

  Liquidity and profitability

Distinguish between liquidity and profitability.

  Ramifications of raising taxes for wealthy

What are your thoughts on the three proposals outlined above, and please feel free to suggest anything that you feel should also be considered in reducing the deficit.

  What is the most you should pay for this investment

Your investment adviser wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment?

  Safety stock reorder point eoq economic order

ABC Hardware store is open for business 350 days a year. Annual demand for a power cutter at this store is 700 units. Replenishment cost is $15 per order and annual inventory holding cost is 10% of the inventory value.

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