Calculate the present value of all the costs

Assignment Help Accounting Basics
Reference no: EM133059460

Question - Wamco is considering purchasing a new cloud-based software. The initial upfront outlay is $50,000. The annual software subscription is an amount of $20,000 at the end of each year for a duration of four years. The estimated savings to the business for the new cloud-based software will be $40,000 each year for four years. The discount rate for this calculation is 3%. Using the present value formula please calculate the present value of all the costs and benefits for four years.

Reference no: EM133059460

Questions Cloud

Compute the new price of the bond : Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. Compute the new price of the bond
Financial planning process : As part of the financial planning process, a common practice in the corporate finance world is restructuring through the process of mergers and acquisitions.
Calculate the overhead application rate for the year : Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Calculate the overhead application rate
Essay about world religion : This research paper on a world religion will consider the similarities between Christianity and another world religion such as Hinduism, Buddhism
Calculate the present value of all the costs : The discount rate for this calculation is 3%. Using the present value formula please calculate the present value of all the costs and benefits for four years
What is incremental value of the acquisition to Dumb Jack : Smart Smith has 50,000 shares outstanding with a share price of $15. What is the incremental value of the acquisition to Dumb Jack
About organization mission-vision-values and industry : Provide information about the organization's mission, vision, values, and industry.
Determine the Johnson and Johnson tax shield : Johnson & Johnson's 2018 financial statements show operating profit before interest and tax of $20,049 million, Determine the Johnson and Johnson tax shield
Sustainable customer centricity model : Identify opportunities and threats as well as strengths and weakness of the company? What is/are the strategy (ies) used by Best Buy?

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.

  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!

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