User Account

All Pages

Based on your answer for 1b above should the company buy

Assignment Help Accounting Basics
Reference no: EM13581524

Company VGG is thinking of buying a factory to meet the growing demand for its products. The following is the financial data regarding this proposal.

  • Cost of the factory today $20 million
  • Annual cash flow $2 million
  • Life of the factory 15 years
  • Cost of capital 8%
  • CALCULATE THE FOLLOWING:
  • Payback period in years
  • Net present value.

Based on your answer for 1.b above, should the company buy this factory? Why or why not?Now assume that after 15 years, the factory can be sold for $12 million. What is the net present value?

Reference no: EM13581524

Questions Cloud

Oct 31 the company earned revenues of 472500 and incurred : part 2 after establishing their companys fiscal year-end to be october 31 natalie and curtis began operating cookie amp
Assuming that joe sixpack inc has 20000000 to invest which : assuming that joe sixpack inc. has 20000000 to invest which of the above companyu2019s bonds should the company invest
After recording adjusting and closing processes that makeup : after recording adjusting and closing processes that makeup the accounting information system you may have noticed
John installed a new roof on his friends house in return : indicate whether each of the items listed below would be included i in or excluded e from gross income for the 2013 tax
Based on your answer for 1b above should the company buy : company vgg is thinking of buying a factory to meet the growing demand for its products. the following is the financial
Company had processed chemical bh at a cost of 70000 this : company had processed chemical bh at a cost of 70000. this chemical can be sold now for 82000 or can be processed more
The manufacturing overhead budget at cutchin corporation is : the manufacturing overhead budget at cutchin corporation is based on budgeted direct labor-hours. the direct labor
Company yyy is thinking of buying a new and improved : company yyy is thinking of buying a new and improved machine. this machine costs 6 million today. this machine will
Should harder give a commission to its salesmen based on 10 : peterson company incurred the following high and low maintenance costs totals during 2011 432000 at 20000 units of

Reviews

Write a Review

Accounting Basics Questions & Answers

  Quality supplier inc accepts cash or credit card payment

quality supplier inc accepts cash or credit card payment from customer. during june quality provided 170000 worth of

  Monthly advertising expense problem

Suppose that management believes that a $24,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by how much to justify this additional expenditure?

  Wadjase corp prepared a master budget that included 17800

wadjase corp prepared a master budget that included 17800 for direct materials 28000 for direct labor 15000 for

  What are the equivalent units of production

What are the equivalent units of production (EUP) for the conversion costs in the month of September assuming ALG uses weighted-average process costing?

  Compute total-price and quantity variances for materials

Compute the total, price, and quantity variances for materials - Benjamin Company purchased

  The accounts receivable account has total debit postings of

the accounts receivable account has total debit postings of 1900 and credit postings of 1100. the balance of the

  The following information is available for knot company at

1.cmp inc. maintains perpetual inventory records. during january the company made purchasese of 40000 and sold goods

  Compute the macaulay duration

A bond with a five-year term to maturing, a 12 percent coupon (annual payments), and a market yield of 10 percent.

  What amount of units be sold to realize operating income

If fixed costs are $600,000 and the selling price per unit is$160 and the variable cost per unit is $60, what amount of units must be sold in order to realize an operating income of $200,000?

  What amount should tack report as a prior period adjustment

tack reported a retained earnings balance of 150000 at dec 312007.in june 2008 tacks internal audit staff discovered

  Eliminate the need for the auditors to assess risk

we are auditing the sales and collection cycle of a non-profit hospital. Just because it is a non-profit organization, that does not eliminate the need for the auditors to assess risk.

  Purchase on income before income taxes

What would be the effect of this purchase on income before income taxes? (Leave no cells blank - be certain to select "No effect" wherever required. Omit the "tiny_mce_markerquot; sign in your response.)

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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