User Account

All Pages

Company x is evaluating a capital expenditure proposal

Assignment Help Accounting Basics
Reference no: EM131779663

Company X is evaluating a capital expenditure proposal with the following predicted cash flows:
Initial investment: $110,000

Operations:

Year 1 $40,000
Year 2 30,000
Year 3 55,000
Salvage value: -0-

Additional information for interest rate of 12 percent:

Present value of $1 - year 1 0.893
Present value of $1 - year 2 0.797
Present value of $1 - year 3 0.712
Present value of an annuity of $1 (3 periods) 2.402

Required: Determine the following values:

a. Net present value of the investment at a discount rate of 12 percent
b. Payback period
c. Accounting rate of return using average investment

Reference no: EM131779663

Questions Cloud

Partner basis in the partnership after the contribution : How much is this general partner's basis in the partnership after the contribution and loan?
Fasb proposal of eliminating extraordinary items : Discuss if you think the FASB proposal of eliminating extraordinary items of income statements is a good idea now that you have seen the impact.
Competitive environmental work : Consider green practices for a company. Offer your thoughts and views and try to include other competitive environmental work you have heard about.
Research news articles and provide an example of a company : Research news articles and provide an example of a company where there is a very good or a very bad match between their goals and their supply strategy.
Company x is evaluating a capital expenditure proposal : Company X is evaluating a capital expenditure proposal with the following predicted cash flows
What is the par value of the shares : Did the company issue any new shares in the latest financial year, if yes, what amount of shares were issued? What is the par value of the shares
What are your areas of weakness within interpersonal domain : What are your areas of weakness within the interpersonal domain, and how did you determine a cluster as a weakness? Provide supportive examples.
Processes of the employees undergoing change : Describe your approach to leading change, as well as the psychological processes of the employees undergoing this change.
Marketing from an international perspective : Dose poor management (ex: dividend decisions or building new factories) of a company affect its marketing from an international perspective?

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