Customer Service Chat
Get quote & make Payment
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
Ask an Expert
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
Write your message here..
Job order costing, what are the procedure of job order costing
what are the procedure of job order costing
Frequency distribution, What happens to the arithmetic mean when you add th...
What happens to the arithmetic mean when you add the same number to all the scores of the distribution?
Probebility., what is probebility? and how to solve the sums of this?
what is probebility? and how to solve the sums of this?
TRENDS , Why do we particularly omit the middle year when using the semi-av...
Why do we particularly omit the middle year when using the semi-average method to fit a trend line
Life tables, For public health purposes, the force of mortality in a popula...
For public health purposes, the force of mortality in a population is usually measured by means of such indices as crude death rate. Infant mortality rate, specific death rate at d
Spectral Hydrogen Atom, Long before Bohr gave his theory of hydrogen atom, ...
Long before Bohr gave his theory of hydrogen atom, various scientists had observed experimentally, the spectral series of hydrogen atom. Bohr offered a theoretical explanation of t
Sampling, Advantages of sampling over population
Advantages of sampling over population
Managerial accounting, The ABC Company''s old equipment for making subassem...
The ABC Company''s old equipment for making subassemblies is worn out. The company is considering two alternatives: a) Completely replacing the old equipment with new equipment b)
Adaptations, what are flatworms adaptations
what are flatworms adaptations
Education , what are the aims of education
what are the aims of education
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.