Profitability index of the project

Assignment Help Accounting Basics
Reference no: EM13135167

The management of Crail Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $60,180. The profitability index of the project is closest to:

A. 0.18

B. 0.82

C. 1.18

D. 0.15

Reference no: EM13135167

Questions Cloud

Find the equilibrium values of the real interest rate : What feature in this example leads to the result that you don't need to know the amount of taxes collected by the government to find the equilibrium?
Diameter pipe is used to maintain a constant level : Find flow rate A siphon made of a 1 in-inside-diameter pipe is used to maintain a constant level in a 20 ft-deep tank
An essay about four books you want to read and the reason : I write an essay. Topic is"What are four books you want to read and the reason."
What can a public accounting firm do : What can a public accounting firm, such as the one in which Tiffany works, do to ensure that audits of computerized accounting information systems are conducted efficiently and effectively?
Profitability index of the project : The management of Crail Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $60,180. The profitability index of the proj..
What happens to the real interest rate : What happens to the real interest rate, output, consumption, and investment in the short run (in which the price level is fixed)? What happens in the long run to the real interest rate, consumption, investment, and the price level?
Amount of fencing required : A farmer plans to fence a rectangular pasture adjacent to a river. The pasture must contain 180,000 square meters. What dimensions would require the least amount of fencing if no fencing is needed along the river?
What would the estimated total cost per tax return : Determine the variable and fixed cost components of the firm’s Service Overhead account. What would the estimated total cost per tax return be if the firm prepares 825 standard short-form tax returns in April?
Operating assets is considering the purchase : A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year. The payback period for this machine in years is closest to:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accounting databases to obtain relevant data

The use of accounting databases enables researchers to obtain data to help answer their questions more efficiently. Using the FASB Codification database and other sources such as the SEC Web site as guides, answer the following questions:

  Prepare a stockholders equity section of the company

1. Alpha Co. sold 10,000 shares of common stock, which has a par value of $10, for $13 per share. Their balance in retained earnings in $75,000. Prepare a stockholders' equity section of the company's balance sheet.

  Adjusting journal entries for balance sheet accounts

Following are several December 31 account balances of Brookhaven Square, Inc. prior to the preparation of year-end adjusting journal entries: Briefly describe the nature of the adjusting journal entries for the accounts identified.

  Prepare a journal entry to record the sale of the bond

On March 1, 2005, Andrews Corporation issued $900,000, 8%, 5-year bonds dated January 1, 2005, for $834,500, including accrued interest. The bonds pay semi-annual interest on January 1 and July 1 and mature on January 1, 2010. The company uses the..

  Return on investment for the division

The Division is considering purchasing equipment for $40,000 that will increase sales by an estimated $10,000, with annual amortization of $10,000. If the equipment is purchased, what will happen to the return on investment for the division?

  Determine the corporation income tax liability

In each of the following independent situation, determine the corporation's income tax liability. Assume that all corporations use a calendar year for tax purposes and that the tax year involved is 2011.

  Explain how the accounting equation is impacted

(1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount and (2) explain how the Accounting Equation is impacted.

  Market value of firm common equity

BunaBuna has been growing at a 15 percent annual rate and is expected to continue to do so for 3 more years. At that time, growth is expected to slow to a constant 4 percent rate.

  Debit entry to bond interest expense

The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Bond Interest Expense is for:

  Which employees within organization likely be good source

Why might we want to develop these initial expectations prior to beginning our analytical procedures?

  Methods of obtaining the cash

Prepare a brief memo (no more than 120 words) giving the arguments for and against offering this preferred stock. In the memo also briefly mention other methods of obtaining the cash.

  Amount of caseys deduction

Casey owned stock in Jupiter Corporation that he donated to a university (a qualified charitable organization) on December 30, 2009. What is the amount of Casey's deduction assuming that he had purchased the stock for $10,000 on January 3, 2009, a..

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