Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Dectron Ltd is looking to expand its operations by opening a second manufacturing facility. It intends acquiring new plant and equipment for this facility. It is currently considering the following two options that can help increase capacity:
Plant and equipment can be imported at a cost of R840 000. This equipment will generate net cash inflows of R200 000 in the first year and this is expected to increase by 10% for each year for the next four years. The equipment will have a useful life of five years after which it can be sold for R60 000.
Plant and equipment can be purchased locally at a cost of R800 000. This equipment will generate net cash inflows of R300 000 per annum for four years. The equipment will have a useful life of four years after which it will have to be scrapped. It is not expected to realise any cash on its scrapping. The company's cost of capital is 12%. Assets are depreciated on a straight line basis over their useful lives.
1. Calculate the Net Present Value of each option.
2. Based on the NPV's calculated, what advice would you give if these were independent projects.
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: - Explain the goals and uses of special journals.
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.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
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, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd