Calculate the net present value of project

Assignment Help Accounting Basics
Reference no: EM13157121

Timco Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $136,000, and have an estimated useful life of 5 years. It will be sold for $70,000 at that time. It is expected to increase net annual cash flows by $25,000. The company's borrowing rate is 8%. Its cost of capital s 10%. Calculate the net present value of this project to the company?

Reference no: EM13157121

Previous Q& A

  Why a male subject with a higher intake of carbohydrates

Physiologically, explain why a male subject with a higher intake of carbohydrates in his diet as well as a greater volume and more consistency in exercise within his lifestyle would make him have/show greater RER values and relative fuel consumpti..

  Calculate the equilibrium concentrations

Carbon monixide reacts with steam to produce carbon dioxide and hydrogen. At 700 k the equilibrium constant is 5.10. calculate the equilibrium concentrations of all species if 1.000 mol of each component is mixed in a 1.000-L flask.

  Chance exactly one car to pass over bridge during given time

The number of cars passing over a certain bridge between 11pm and midnight has a Poisson density with lambda = 4. In what proportion of nights would you expect exactly one car to pass over the bridge during this time?

  Level of accounts receivable-support sales expansion

a. What is the level of accounts receivable needed to support this sales expansion? b. What would be Collins's incremental aftertax return on investment?

  How much heat is evolved

How much heat is evolved when 239 g of ammonia gas condenses to a liquid at its boiling point?

  How technology has changed learning environment

Explain how technology has changed the learning environment. What are some examples of how technology can assist with How might new technologies make it easier to learn? How do they facilitate transfer of training? Provide details.

  Calculate the specific heat capacity of the metal

A 150.0-g sample of a metal at 75.0 °C is added to 150.0 g of H2O at 15.0 °C. The temperature of the water rises to 18.9 °C. Calculate the specific heat capacity of the metal, assuming that all the heat lost by the metal is gained by the water.

  How much will he owe the bank at the end of three years

A man went to his bank and borrowed $750. He agreed to repay the sum at the end of three years, together with the interest at 12% per year, compounded annually. How much will he owe the bank at the end of three years?

  What must happen to induce foreign residents to buy the bond

What must happen to induce foreign residents to buy the bonds? If foreign residents desire to purchase the bonds, what is the most important source of dollars to buy them?

  Which of the following is targeted by scf

Which of the following is targeted by SCF?


Write a Review


Similar Q& A

  Quality of the company earnings

Watson Corporation reported net income of $352,000, cash of $67,800, and net cash provided by operating activities of $221,200. What does this suggest about the quality of the company's earnings? What further steps should be taken?

  Carryover basis in an asset

Partnership will take a carryover basis in an asset it acquires when: a. The partnership acquires the asset through a § 1031 like-kind exchange. b. A partner owning 25% of partnership capital and profits sells the asset to the partnership.

  Agency relationships and costs

What is an agency relationship, and what are agency costs? How do these concepts apply to your investment in the oil and gas partnership?

  Prepare the journal entries for the restructuring

Provide your manager a comparison of the current reporting for debt,explaining the requirements for each type (bond, mortgage, capital lease, andothers). Then, prepare the journal entries for the restructuring.

  Dividend per share paid on the stock

If the company maintains a constant 7 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

  Depreciation calculation procedures

Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine's net income, total profit margin, and cash flow?

  Division relevant to operating range

The Red Car Division has excess capacity and the 1,000 units can be produced without interfering with the current outside sales of 5,000. The 6,000 volume is within the division's relevant operating range.

  Consolidated income statement of push company

In the consolidated income statement of Push Company and its subsidiary, Shove Corporation, the noncontrolling interest was assigned $24,000 of income for 2009. What amount of net income did Shove report for 2009 if Push owns 80 percent of Shove?

  How can a country tax system affect the manner

how can a country's tax system affect the manner in which an operation in that country is financed by a foreign investor?

  Is force''s sale of usaco subject to withholding under firpta

USAco, a domestic corporation, is a wholly-owned subsidiary of FORco, a foreign corporation. USAco's only assets are cash of $200,000, accounts receivable of $200,000 and its U.S. manufacturing plant worth $500,000. USAco has no liabilities. FORco se..

  Strengths and weaknesses of various types of accounting

Are there any differences between the organizations that adopt a particular accounting method? What are the strengths and weaknesses of the various types of accounting?

  Population when performing audit procedures

What is the importance of defining the population when performing audit procedures? How will this affect the sample size? How will incorrectly defining the population affect the sampling unit? - answer 100-150 words.

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