Compute the net present value of the project assuming a 10

Assignment Help Accounting Basics
Reference no: EM13583787

A company is considering a proposal to invest $30,000 in a project that would provide the following net cash flows:

Year 1 $6,500
Year 2 $10,700
Year 3 $15,000
Year 4 $12,800

1) What is the project's payback period?
2) Compute the net present value of the project assuming a 10% discount rate with the following factors: PV factors for $1(yr 1: 0.9091; yr 2: 0.8264; yr 3:0 .7513; yr 4: 0.6830)
3) Should the company invest in the machine? Explain.

Reference no: EM13583787

Questions Cloud

A charged particle of mass 00020 kg is subjected to a 60 t : a charged particle of mass 0.0020 kg is subjected to a 6.0 t magnetic field which acts at a right angle to its motion.
Is it appropriate for banks and savings associations to : is it appropriate for banks and savings associations to estimate an allowance for pass loans and for credit unions to
Tammy acquired an automobile for 20000 on july 1 2010 she : tammy acquired an automobile for 20000 on july 1 2010. she used the automobile partially for business purposes during
A multi-turn square loop of wire 20 cm on each side is : a multi-turn square loop of wire 2.0 cm on each side is oriented so that a 5.00 mt magnetic field makes a 30.00 angle
Compute the net present value of the project assuming a 10 : a company is considering a proposal to invest 30000 in a project that would provide the following net cash flowsyear
If 1 amu 1661 x 10-24 g what is the weighted average : if 1 amu 1.661 x 10-24 g what is the weighted average atomic mass of a boron atom in
Under the banking agencies regulatory classification : under the banking agencies regulatory classification guidelines substandard assets are defined as assets that are
Another second assignment is aids evolution of epidemic : acupunture historyusesproscons does the american insurance cover this acupunture? another second assignment is aids
It is not practical to count individual atomsmolecules : it is not practical to count individual atomsmolecules because of their small size. however we can determine the number

Reviews

Write a Review

Accounting Basics Questions & Answers

  On january 2 2011 jansing corporation acquired a new

on january 2 2011 jansing corporation acquired a new machine with an estimated useful life of five years. the cost of

  Relevant and two non-relevant costs in decision

In this module you are going to have your final application to your organization. Identify a decision that has recently been made or will be made in the near future in your organization. Identify two relevant and two non-relevant costs in this dec..

  What happens to the value of money if prices in general fall

What is the basic relationship between interest rates and bond prices, and why does the relationship exist?

  Problem on annual depreciation expense

A machine cost $80,000, has annual depreciation expense of $16,000, and has accumulated depreciation of 40,000 on December 31. On April 1,2011 when the machine was fair value of 32,000, it is exchanged for a similar machine with a fair value of 96..

  Why would an increase in sales resulting from offering an

fdp company produces a variety of home security products. gary price the companys president is concerned with the

  What is an advantage of each metric compared to the other

The net present value and the internal rate of return are similar metrics to present the return of a project. What are the differences? What is an advantage of each metric compared to the other?

  Computing material price and quantity variances

Henry's is a chain of 45 coffee shops. The standard amount of ground coffee per cup is .75 ounces. During the month of October, the company sold 320,000 cups of coffee (reported via electronic cash registers), and the 45 shops reported using 15,80..

  What are the qualitative factors that innova will have

Should Innova purchase the component from the outside vendor if it can use its facilities to manufacture another product? What information will Innova need to make an accurate decision? Show your calculations.

  The expected gross profit rate is 40 and the inventory at

the expected gross profit rate is 40 and the inventory at the end of february was 10000. desired inventory levels at

  Below is budgeted production and sales information

Below is budgeted production and sales information for Flushing Company for the month of December:

  Determine the markup percentage on total cost

Jamison Company produces and sells Product X at a total cost of $25 per unit, of which $15 is product cost and $10 is selling and administrative expenses. In addition, the total cost of $25 is made up of $14 variable cost and $11 fixed cost

  Evaluate the alternatives from the perspective of amber

Amber, a publicly held corporation (not a TARP recipient), currently pays its president an annual salary of $900,000. In addition, it contributes $20,000 annually to a defined contribution pension plan for him.

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