Accounting rate of return, accounting, Basic Statistics

Ghosh Ltd is considering expanding its business and has to decide between taking on Project A or
Project B. Both projects have a life of four years. Equipment is expected to have no scrap value.
Other information about the projects is as follows:
Project A Project B
Initial outl ay $150 000 $140 000
Annual s ales $100 000 $120 000
Annual purchases $40 000 $65 000
Other costs as a percentage of sales 8% 5%
Increase in working capital $10 000 $18 000
Ghosh Ltd uses a cost of capital of 10%. Discounting factors at 10% are as follows:
Year 1 0.909
Year 2 0.826
Year 3 0.751
Year 4 0.683
Using a cost of capital of 10% Project B has a net present value of$15281
Posted Date: 3/26/2012 1:14:06 PM | Location : United States

Related Discussions:- Accounting rate of return, accounting, Assignment Help, Ask Question on Accounting rate of return, accounting, Get Answer, Expert's Help, Accounting rate of return, accounting Discussions

Write discussion on Accounting rate of return, accounting
Your posts are moderated
Related Questions
This assignment is designed to compare performance between Matlab and Excel for performing nonlinear regression analysis of a set of data. There are two data sets in the accompanyi

A scientist claims that the mean incubation period for the eggs of a species of birds is more than 46 days.

Employee portion of Medicare tax Medical health insurance tax is also taken out from a worker's wage or income and is equaled by participation from the company. In other terms,

discuss the nature and causes of the components of an economic time series?

In the financial statements, each product must include the costs of the given below: Direct labor Direct material Manufacturing or factory overhead The costs that would typically b

1. Suppose that a population has mean, µ, and standard deviation, σ. What does the central limit theorem tell us about the distribution of the sample mean?

Accounting Standards in  Canada:  : In 2005, the Accounting Standards Board in Canada promoted the use of IFRS over the use of GAAP. The companies of Canada are supposed to ad

find the variance of least square estimator beta hat for general linear regression model when k=2 in matrix form?

State unemployment tax Condition government authorities provide lack of employment solutions and figure out conditions lack of employment tax amount for each company. (Some not