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
what is the Texas state gemstone

Significant discussion has occurred in the literature on making management accounting more relevant to the current business environment, which is dominated by discussions of global

Your firm purchased a line of computer equipment for $1.5M four years ago. It is assigned a CCA rate of 20% and the firm has a tax rate of 35%. At the end of this year (year 4 for

What is a sole proprietorship? A sole proprietorship is a form of business organization that is owned by one person. The owner is referred to as a sole proprietor. In accoun



1.  Create formulas to calculate the normalized (i.e., percentage scores) for each of the quizzes and exams.  The yellow fields depict where these interim calculations are required

Question 1:      (a)  The time it takes to deliver a pizza after an order is placed is uniformly distributed between 20 and 50 minutes. What is the probability that a pizza wil

Suppose that an individual has unearned income of $V and can choose how many hours she works per week at a wage of $w per hour.  Assume that she has a total of 110 hours of time to

Differentiate between Historigrams and Histogram