User Account

All Pages

What is the net present value of the? investment

Assignment Help Financial Accounting
Reference no: EM131267713

Gamma Corporation is considering an investment of? $518,000 in a land development project. The investment will yield cash inflows of? $220,000 per year for five years. The company uses a discount rate of? 9%. What is the net present value of the? investment? Present value of an ordinary annuity of? $1: ?8% ?9% ?10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.24 3.17 5 3.993 3.89 3.791

A. ?$341,880 B. ?$220,000 C. ?$337,800 D. ?$238,280.

Reference no: EM131267713

Questions Cloud

Contribution format income statement for quarter ended : Haaki Shop, Inc., is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31: Prepare a traditional income statement for the quarter ended May 31. 2. prepare a contribution format income statemen..
Calculate the payback period for the investment : The following details are provided by a manufacturing? company: Product line Investment ?$1,100,000 Useful life 12 years Estimated annual net cash inflows for first year ?$400,000 Estimated annual net cash inflows for second year ?$390,000 Estimated ..
Company direct labor budget for the upcoming fiscal year : The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,000 7,500 8,000 10,300. Complet..
Complete the schedule of the company total and unit costs : Cost Behavior; Contribution Format Income Statement [LO3, LO5] Parker Company manufactures and sells a single product. A partially completed schedule of the company’s total and per unit costs over a relevant range of 60,000 to 100,000 units produced ..
What is the net present value of the? investment : Gamma Corporation is considering an investment of? $518,000 in a land development project. The investment will yield cash inflows of? $220,000 per year for five years. The company uses a discount rate of? 9%. What is the net present value of the? inv..
Prepare direct materials budget for musk oil : Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Prepare a direct materials budget for musk oil, by quarter and in tota..
Calculate amount of net income-use weighted average method : ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for the month of May: Calculate the amount of NET INCOME reported on ABC Company's in..
Statements regarding audit of negotiable notes receivable : The confirmation of the client's trade accounts receivable as a means of obtaining audit evidence is ordinarily considered to be a: Which of the following statements regarding the audit of negotiable notes receivable is correct?
Principles of cost accounting : Principles of Cost Accounting 16 ed. The chief executive officer of Richards Corp. attended a conference in which one of the sessions was devoted to variable costing. Prepare an income statement using variable costing? Prepare an income statement usi..

Reviews

Write a Review

Financial Accounting Questions & Answers

  A responsibility accounting performance report displays

A responsibility accounting performance report displays:

  International nature of the clubs guests poses

The international nature of the club’s guests poses challenges for the kitchen staff, Japanese break-fasts feature miso soup, stewed vegetables in soy sauce, and rice porridge whereas Germans are accustomed to cold cuts and bread for breakfast. The n..

  Chart of accounts for exact wording of account titles

Art Imaging Company was organized on April 1 of the current year. On April 2, Art Imaging Company prepaid $54,000 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. Journalize the two adjusting entries ..

  Examine full-cost and variable-cost transfer

Examine the effect of both full-cost and variable-cost transfer pricing methods on Phipps' cash flows using a spreadsheet program such as Excel.

  New monitor requires to increase net working capital

A new electronic process monitor costs $990,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor would actually be worth $100,000 in five years. The new monitor would save $460,000 per year before taxes and operating cos..

  Using the sum-of-the-years digits method

Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000. Compute the amount of depreciation for each of Years 1 through 3 using the s..

  What was consolidated cost of goods sold

Cost of goods sold was $10,800,000 for Webb and $6,400,000 for Rand. What was consolidated cost of goods sold?

  Employer pays overtime for all the time worked in excess

Amanda M. worked the following schedule: Monday 8 hours, Tuesday 9 hours, Wednesday 7 hours 48 minutes, Thursday 8 hours, Friday 8 hours. The employer pays overtime for all the time worked in excess of 40 hours per week. Amanda is paid $20 per hour.

  Lemmings end-of-period adjusting entry

Lemming makes an $18,750, 120-day, 8% cash loan to Notions Co. on November 2. Lemming's end-of-period adjusting entry on December 31 should be:

  Reduction in inventory turnover ratio likely implies that

When a company reports a higher current ratio this year compared to last year we can conclude that.  Assume a company’s Number of Days’ Sales in Inventory ratio has increased in comparison with last year.  A reduction in inventory turnover ratio like..

  Market price of the company''s stock

Is the market price of the company s stock going up or down- is the earnings per share increasing or decreasing - Current assets consist of cash, accounts receivable, and inventory

  Assume that the company that is a reporting entity

You should assume that the company that is a reporting entity and that the date the  annual report (including the financial report) is authorised for issue is the 1st September 2014.

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