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
Define the conversion and competitive effects of exchange rate changes on the company's operating cash flow. Answer:  The competitive effect: Exchange rate modifications may in

what is the rand corporation five project rank

Contractual savings institutions Contractual savings institutions obtain funds at periodic intervals on a contractual basis. The industry is classified into two main groups ins

Meaning of Returns The return from holding an investment over some period - say, a year, is simply any cash payments received due to ownership, plus the change in market price,

a) Year 2 ROCE = $400k / $1,000k = 40% Year 1 ROCE = $360k / $800k = 45% b) ROCE is an efficiency ratio that measures the monetary performance of a firm compared with the amo

What is the Ratios based on historic cost accounts Ratios based on historic cost accounts don't give a true picture of trends, due to the effects of inflation and different acc

Scope of Financial Management The approach to scope and functions of financial management is divided, forpurposes of exposition, into two broad categories: (a) Traditional A

Q. Explain Compound Value of an Annuity? Compound Value of an Annuity: - Annuity demotes to the periodic flows of equal amounts. FV = A {(1+i)n - 1}/i Instance: - Mr. X i

Market Efficiency Though there are various markets present in the financial system, the ease with which the transfer of funds take place depends on the level of efficiency pres

BASRIL PLC (a) (i) Analysis of projects assume they are divisible. Project 2 NPV at 12% = (140800 × 3·605) - 450000 = $57584 Project 2 profitability index = 5