Calculate the present value of total future cash outflow

Assignment Help Accounting Basics
Reference no: EM132201886

Question - Collins Limited estimated the future cash outflows over the next three years relating to settlement of warranty obligations would be as follows:

1 year from now: $20 000

2 years from now: $38 000

3 years from now: $45 000

Collins Limited calculates that the present value of the total expected future cash outflow, using a discount rate of 8%, is?

Reference no: EM132201886

Questions Cloud

Organizational leaders to communicate across boundaries : What are some ways to clearly define the definition of diversity that allows organizational leaders to communicate across boundaries?
What is the life of a patent and how is it determined : Redstone Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, What is the life of a patent and how is it determined
Provide non-binding advisory legal opinion : Provide a non-binding advisory legal opinion to the City assuming it is allowed for in the state constitution.
Eliminate rater and rate bias from evaluation processes : Describe some possible biases/concerns in peer evaluations. How would you eliminate rater and rate bias from evaluation processes?
Calculate the present value of total future cash outflow : Collins Limited calculates that the present value of the total expected future cash outflow, using a discount rate of 8%, is
Ethics and culture of their organization : What role does top leadership play in shaping the ethics and culture of their organization?
Friends betty was so enthusiastic about johan ice cream : One of his friends Betty was so enthusiastic about Johan's ice cream that she invited Johan to start a company with her to produce and sell the ice cream.
What role does corporate social responsibility play : What role does Corporate Social Responsibility play in today's business world? How is this different than the past (say 20-30 years ago)
Explain the implications for accounting : Explain the implications for accounting if decision makers in accounting context display any or all of the representatives, availability

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