Brixton plans to sell the applicable computer, Financial Management

Brixton Products is considering the purchase of a new $520,000 computer-based entry order system.  The cost of the system will be depreciated on a straight-line basis over its five-year life.  Brixton plans to sell the applicable computer gadgets at the end of five years for $40,000.  During the five-year life of the project, Brixton will kept $160,000 each year in order-processing costs.  What is the approximate internal rate of return for this project?  Ignore income taxes.   

Posted Date: 3/26/2013 7:40:25 AM | Location : United States







Related Discussions:- Brixton plans to sell the applicable computer, Assignment Help, Ask Question on Brixton plans to sell the applicable computer, Get Answer, Expert's Help, Brixton plans to sell the applicable computer Discussions

Write discussion on Brixton plans to sell the applicable computer
Your posts are moderated
Related Questions
How does accounts receivable factoring work?  What are the benefits to the two parties involved?  What are the risks? Factoring is when one firm trade accounts receivable (AR)

As starting a new business, is it better to leas or buy the business venture?. what factors should be considered. (Knowing that the equity finance is $150,000 and $250,000 could be

Securitization has attracted a widespread application of the technique to residential mortgage loan, the easiest class of a financial asset to securitize, and to

Determine the example of Rate of return of a Bond A bond is paying 10 % interest per annum and is going to mature in next two years At maturity it would pay its principal amoun

Normally, floater coupon rate moves in the same direction as the reference rate. That is, with an increase in the reference rate, the floater coupon rate also increases

Treasury securities are government bonds issued by the US Treasury Department. These are issued through the Bureau of the Public Debt. They are debt-financing ins

Alpha and Beta Companies can borrow at the subsequent rates.                                                            Alpha               Beta Moody's credit rating

It is a well known fact that the value of a financial claim reflects the present value of the cash flows produced by the financial claim. While valuing an MBS an

Johnson & Johnson (JNJ) is trading at 68.15 (Sep 12th 2012 close). JNJ is a large health care conglomerate. It has done well so far this year (though not as well as the market) and

Let us express the process of calculating approximate percentage price change for a given change in yield and a given duration using the following formula: