Calculate the expected npv negative amount should be

Assignment Help Accounting Basics
Reference no: EM13389778

An auto plant that costs $220 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $280 million if the line is successful but only $150 million if it is unsuccessful. You believe that the probability of success is only about 52%. You learn whether the line is successful immediately after building the plant.

a-1.) Calculate the expected NPV. (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 1 decimal place.) EXPECTED NPV (million):

b-1.) Calculate the expected NPV. (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EXPECTED NPV (million):

Reference no: EM13389778

Questions Cloud

It is the controllers belief that the switch in inventory : the controller of sagehen enterprises believes that the company should switch from the lifo method to the fifo method.
A client comes to you thinking regarding starting a : a client comes to you thinking about starting a consulting business. your client is specifically interested in what
Illustrate out the term current liability from the : illustrate out the term current liability? from the perspective of the user of financial statements why do you believe
Ratios provide the users of financial statements with the : ratios provide the users of financial statements with a great deal of information about the entity. do ratios tell the
Calculate the expected npv negative amount should be : an auto plant that costs 220 million to build can produce a line of flexfuel cars that will produce cash flows with a
Individual mannerisms and thought processes are unique to : individual mannerisms and thought processes are unique to everyone. these differences can cause harmony or dissention
Explain how will government regulation impact decision : you have been part of the orthopedic center for 5 years. in that time you have seen the center grow and the need for
1 high levels of competition might be caused by arapid : 1 high levels of competition may be caused bya.rapid industry growthb.low fixed costsc.a small number of competitorsd.a
Starmart manufactures skateboards the company has the : starmart manufactures skateboards. the company has a highly automated production process so itallocates manufacturing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Profit-charges and break-even

Profit, charges, and break-even without and with overhead. A number of years ago, at the request of its employees, Jack Winslow and Company converted one of its small rooms to house a small pharmacy for its employees in which they can buy a few po..

  Accountant allocate for depreciation and amortization

Jake Smith opened his Balinese coffee shop business in downtown Boise on January 1st 2010. On December 31st, 2010, he sat down with his accountant to figure out how his business had done in its first year and heaved a sigh of relief when his accou..

  Identify and discuss the transfer tax implications

Willie purchased a whole-life insurance policy on his brother, Benny. under the policy, the insurance company will pay the named beneficiary $100,000 upon the death of the insured, benny.

  Report outlining the need for regulation in accounting

Comment on the appropriateness of this viewpoint. Prepare a report outlining the need for regulation in accounting and why a free market for accounting information is not ideal.

  Journal entries for not for profit science center

Discovery Barn, a not-for-profit science center for children, received a contribution for $30,000 explicitly designated for the acquistion of computers. Prepare all required journal entries, being certain to indicate the type of fund in which each ..

  Journal entries for government based on production

Prepare Journal Entries for the government based on the production of fund-based financial statements. Than prepare JE entries in anticipation of preparing governement-wide financial statements.

  Loss on the income statement

Betty's Bunny Barn has experienced a $40,000 loss due to tornado damage to their inventory. Tornados have never before occurred in this area. Assuming that the company's tax rate is 30%, what amount will be reported for this loss on the income sta..

  Theory of commercial impracticability

May return the computers and avoid paying for them because the contract was void under the theory of commercial impracticability.

  Determining portfolio at fair value

Cost is $17,000 and Fair Value is $16,000; Security B; Cost is $22,000 and Fair Value is $26,000; Security C; Cost is $34,000 and Fair Value is $29,000.Instructions: prepare the adjusting entry for Otto Corporation on December 31, 2009 to report t..

  Determine the book value of the goodwill

Determine the book value of the goodwill on December 31, 2008, prior to making the impairment adjustment. Illustrate the effects on the accounts and financial statements of the December 31, 2008, adjustment for the goodwill impairment.

  Bond issue at the time of sale problem

The bonds were quoted at 94 and pay interest quarterly on September 30th and December 31st. What were the total proceeds of the bond issue at the time of sale?

  Sales method of accounting acceptable

The Abbott Corporation sells merchandise on the installment basis, and the uncertainties of cash collection make the use of the installment sales method of accounting acceptable. The following data relate to two years of operations.

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