User Account

All Pages

Calculate the equipment pay-bank period

Assignment Help Financial Accounting
Reference no: EM132566409

A company is considering a proposal of installing a cash outlay of Rs. 6,00,000. And net working capital of Rs. 80,000. The expected life of the project is 5 years without any salvage value. Assume that the company is allowed to charge deprecation on straight-line basis for income-tax purposes.

The estimated before-tax cash inflows (earnings before depreciation and tax) are given below:

Year                       Before-tax cash inflows(in Rs.'000)

1                                 240

2                                275

3                               210

4                                180

5                               160

Question 1: The applicable income-tax rate of the company is 35%. If the company's opportunity cost of capital is 12%, calculate the equipment's pay-bank period, net present value and internal rate of return.

Reference no: EM132566409

Questions Cloud

Calculate the break-even point in sales dollars : Rossi Incorporated makes track suits that sell for $50 each. Calculate the break-even point in sales dollars using the contribution margin ratio
What the total depreciation on plant and machinery : What The total depreciation on plant and machinery and other fixed assets in the last year? What The net present value at cost of capital of 20%
Analyze the validity and constitutionality of officer jones : Identify the constitutional amendment that would govern Officer Jones' actions. Analyze the validity and constitutionality of officer's Jones' actions.
Identify the role projects play in meeting the goals : You have just been hired as a Project Manager for Kingston-Bryce Limited and have been assigned your first project. Kingston-Bryce Limited (KBL) is a custom.
Calculate the equipment pay-bank period : If the company's opportunity cost of capital is 12%, calculate the equipment's pay-bank period, net present value and internal rate of return.
How large will my account be at retirement : If I decide to wait 10 years before starting your deposits, how large will my account be at retirement (in 20 years)
Reflect on the resources related to digital information tool : Throughout history, technological advancements have appeared for one purpose before finding applications elsewhere that lead to spikes in its usage.
Determine the current average cost per meal : Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7. Determine current average cost
Develop diagnoses for clients receiving psychotherapy : Patient is 62 years old AAM, who was seen today in the facility. Patient reported that prior to the admission into the facility; she was living with an abusive.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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