User Account

All Pages

Calculate the net present value and payback period

Assignment Help Accounting Basics
Reference no: EM132016687

Question - Project requires an immediate outlay of $2,250,000 and no capital allowances. Annual cash inflows = $955,000 yearly. Material costs = $14,400 in the first year, rising at an annual inflation rate of 7.5% per annum. Other expenses = $18,000 in year 1 and these are expected to fall by 7.5% per annum over the life of the project. Factory space used is currently generating rental income. The rental income = $75,000 per annum throughout.

Corporation tax is paid at a rate of 20% and tax is payable one year in arrears.

The weighted average cost of capital is 10%.

A straight line method of depreciation at a rate of 20% is applied to all noncurrent assets.

Calculate the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period?

Reference no: EM132016687

Questions Cloud

Develop a plan for the interrogation of the witnesses : Develop a plan for the interview and/or the interrogation of the witnesses and suspects in this case scenario.
Research a case or example of corruption within the justice : Research a case or example of corruption within the criminal justice system that was considered the normative behavior by the participants.
Business environmental analysis : Mobile General practitioner clinic - Business Environmental analysis - The introduction is the readers first impassion of the business
Discuss fundamental advantage of using software as a service : Discuss the fundamental advantages and disadvantages of using software as a service (SaaS) within organizations. Next, give your opinion as to why SaaS.
Calculate the net present value and payback period : The weighted average cost of capital is 10%. Calculate the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period
Glycolysis and the citric acid cycle : How many reactions are involved in glycolysis and the Citric acid cycle (specify for each process)
Determine the weight in grams of acetic acid : Determine the weight in grams of Acetic acid (FW= 60.05) and NaAcetate (FW= 82.03) needed to prepare 1 L of a standard buffer
Why important to formulate your brief for data presentation : Why is it so important to formulate your brief for a data presentation? Discuss some ways you would implement to formulate an effective brief.
What must revenue be in order for x company : If revenue and cost relationships are not expected to change in 2018, what must revenue be in order for X Company to earn $60,000

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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