net present value, Accounting Basics

Assignment Help:
Having trouble with word problem:


Planned Acquisition cost $2.1M

Salvage Value $0

16% discount rate

savings = year end


Savings:

year 1 150k

year 2 175k

year 3 300K

year 4 400k

year 5 475K

year 6 600K

year 7 725K

year 8 825K

year 9 875K

year 10 975K


total savings: $5.5M

Savings over acquisition cost $3.4M


Net Present Value ?

Payback in whole years?

Related Discussions:- net present value

Meaning of invoice?, Invoice is a text which haves the under mentioned deta...

Invoice is a text which haves the under mentioned details compulsorily. 1. Invoice Number 2. Name and address of the person 3. Invoice date Name and address of someone

The operating expenses section, The operating expenses section Operati...

The operating expenses section Operating Expenses - directly associated to the sale of merchandise General expenses (administrative expenses) related to business's offic

Cost concept, The resources as machinery, property, buildings and land righ...

The resources as machinery, property, buildings and land rights etc. such a business owns are termed as assets. The money values allocated to assets are derived from the cost conce

Difference between debenture holders and creditors?, Debenture holder are t...

Debenture holder are those who gives long term loan at specific interest rate in term of cas. Creditor gives only short term credit in term of cash for purchasing of goods.

Ethical perspective - world auto parts corporation, John Bentley is the chi...

John Bentley is the chief financial officer for World Auto Parts Corporation the company buys approximately USD 500 million of auto parts every year from small suppliers all over t

Accounts, “Ledger is said to be the principal book entry and the transactio...

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.

How to determine inventory cost, Q. How to determine inventory cost? To...

Q. How to determine inventory cost? To place the proper evaluation on inventory a business must answer the question: Which costs must be included in inventory cost? After that

The book of Deven Verma could not be tallied. The accountant, The book of D...

The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la

Non performing asset?, An asset or account of borrower, which has been clas...

An asset or account of borrower, which has been classified by a bank or financial institution as sub-standard, doubtful or loss assets as per the guidelines issued by RBI. An

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd