After-tax returns will be generated from the project

Assignment Help Financial Accounting
Reference no: EM131262360

The Management of Ink’s Inc. is evaluating the following investment opportunity which will cost the firm $81,383.53 if undertaken. In addition, it is projected that the following after-tax returns will be generated from the project.

Year Cash Flow

1. $20,000

2. 25,000

3. 30,000

4. 35,000

What will the NPV be on the proposed project based on a weighed average cost of capital of 9%? Additionally, what will the project’s IRR be?

Reference no: EM131262360

Questions Cloud

What would the average cost of msdrg : Your hospital has been approached by a major HMO to perform all their MSDRG 505 cases (foot surgeries). They have offered a flat payment of $8,000 per case. You have reviewed your charges for MSDRG 505 during the last year and found the following pro..
Standard direct labor-hour and fixed manufacturing : Morton Company’s variable manufacturing overhead should be $4.50 per standard direct labor-hour and fixed manufacturing should be $270,000 per year. Although normal activity is 30,000 direct labor-hours each year, the company expects to operate at a ..
Difference between an upstream and a downstream transfer : Choose a public company financial statement, a 10k, or an annual report. Review the footnote disclosures related to intercompany activity. How important is this activity to the consolidated group? Where do you find this information? What is the diffe..
How will the shareholder be taxed : Green Corporation (a calendar year taxpayer) had a deficit in accumulated E&P of 250000 at the beginning of the current year. Its net profit for the period January 1 through July 30 was 300000, but its E&P for the entire taxable year was only 40000. ..
After-tax returns will be generated from the project : The Management of Ink’s Inc. is evaluating the following investment opportunity which will cost the firm $81,383.53 if undertaken. In addition, it is projected that the following after-tax returns will be generated from the project. What will the NPV..
Based on the payback method of analysis : Each of the following investment opportunities would cost $55,000. Using the following information, calculate the payback period for each proposed investment. In addition, which project would you select based on the payback method of analysis? Why? F..
How is firms weighted average cost of capital utilized : Pilot Corporation has the following current capital structure, which is considered optimal: Pilot is paying interest at a rate of 12% on its’ outstanding loans, a 10% rate of return on its’ outstanding bonds, a 12% rate of return on its’ preferred st..
Determine the cost formula for shipping expense : Faulk Company has noticed considerable fluctuation in its shipping expense from month to month, as shown by the data below: Using the high-low method, determine the cost formula for shipping expense. If Faulk ships 74 units during a month, what would..
Net income-total manufacturing costs added this period : The following information pertains to Mitchell, Inc.: Raw Materials-Beginning Inventory $ 10,400 Raw Materials-Ending Inventory 12,400 Work in Process-Beginning Inventory 10,600 Work in Process-Ending Inventory 8,000. Calculate the following amounts:..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Capital budgeting models

Capital Budgeting models (like all forecasts) are driven primarily by educated assumptions about outcomes

  Credit entries-increased and decreased with debit

Which of the following is decreased with a credit? Credit entries. Which of the following is increased with a debit?

  What type of inventory method are they using

What type of inventory method are they using? This is usually in the notes that follow the financial statements.

  Cash collections from customers during the period

Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on note would be classified on the statement of cash flows - what were the cash collections from customers during the period?

  Evaluate surplus relief generated

Evaluate the surplus relief generated from the reinsurance transaction and RST Company had the following account balances

  Fair values are used and adjusted each balance sheet date

Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large number of borrowed funds were invested in a new building addition, as well as in equipment and fixture additions. If fair values are used and..

  Formed a partnership dividing income

Emerson and Dakota formed a partnership dividing income as follows: How much net income should be distributed to Emerson?

  Fixed costs at this level of activity amounted

DuChien Corporation recently produced and sold 195,000 units. Fixed costs at this level of activity amounted to $57,800; variable costs were $585,000. How much cost would the company anticipate if during the next period it produced and sold 201,000 u..

  Accounting for bond related transaction through journal

accounting for bond related transaction through journal entries.entries for conversion amortization and interest of

  Define comprehensive budgeting

Watson uses four units of direct material in each finished unit. The direct material price has been stable and is expected to remain so over the next six months. Management wants to maintain the ending direct materials inventory at 60% of the f..

  Compute the post-closing trial balance

Prepare the closing entries. Use J14 for the journal page. Post the closing entries. Use the three-column form of account. Income Summary is account No. 350. Prepare a post-closing trial balance.

  Compute the variable cost per occupied bed on daily basis

University Hospital has 750 beds. One of its key performance measures is “cost per occupied bed per day.” This number is computed by dividing total operating cost for a month by the total number of beds that were occupied each day during that month. ..

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