Considering a capital project

Assignment Help Accounting Basics
Reference no: EM13159104

Cannon Company is considering a capital project that will return $100,000 each year for five years. At the company's hurdle rate of 10%, the present value of the annuity is $379,100. If the return on investment in the first year is $37,910, what is the return of investment that year?

Reference no: EM13159104

Questions Cloud

What are some of the top reasons of consumers reporting low : What are some of the top reasons of consumers reporting lower life satisfaction, even though their purchasing power has recently increased?
What is the equilibrium price : The inverse demand that duopoly quantity-setting firms faces is p = 90 - 2q1 - 2q2. Firm #1 has no marginal cost of production, while firm #2 has a marginal cost of $30. How much does each firm produce if they move simultaneously? What is the equ..
Show the effect of temperature on the rate of respiration : plan and design a experiment to show the effect of temperature on the rate of respiration.
What is the molecular weight of the solid : A 2.15 g sample of white solid was vaporized in a 345 mL vessel. If the vapor has a pressure of 985 mmHg at 134°C, what is the molecular weight of the solid
Considering a capital project : Cannon Company is considering a capital project that will return $100,000 each year for five years. At the company's hurdle rate of 10%, the present value of the annuity is $379,100. If the return on investment in the first year is $37,910, what i..
What will happen to gdp and employment : What will happen to GDP and employment? What do you think will be the impact on banks and other financial institutions? Do you agree with the bill?
How many current dollars will you have to invest today : Suppose that you desire to get a lump sum payment of 100,000 two years from now. Rounded to full dollars, how many current dollars will you have to invest today at a 10 percent interest to accomplish your goal?
Identify a bacterial infection acquired on different planet : due to the prospect of interplanetary travel how would u attempt to isolate and identify a bacterial infection acquired on different planet. the bacteria is unknown to us and does not appear in bergey's or manual of clinical microbilogy.
How climate change can cause dissolution : Explain and discuss how climate change can cause dissolution of existing ecosystems and the formation of new ecosystems. Cite if references are used.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Company break-even point in dollar sales

Scott Company's variable expenses are 70% of sales. The company's break-even point in dollar sales is $2,420,000. If sales are $53,000 below the break-even point, the company would report a:

  Net amount paid to minimize its cost

Also, a 90-day put option with an exercise price of $.73 and a premium of $.01 is available. FAB plans to purchase options to hedge its payable position. Assuming that the spot rate in 90 days is $.71, what is the net amount paid, assuming FAB wis..

  Basics of income under absorption costing

There was no beginning inventory at 1/1/09. Production was 20 units per year in 2009-2011. Sales was 20 units in 2009, 16 units in 2010, and 24 units in 2011. Income under absorption costing for 2010 is:

  Why companies go to private and leveraged buyouts

List the advantages and disadvantages of Public versus Private Financing.

  Amount of adjusting entry for bad debts

An aging of accounts receivable indicated that $192,000 are expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31 is

  Application of the financial statement

Students will prepare a two to three (2-3) page response to the following: • Select either the balance sheet or income statement and explain how the use of it may be applied to your everyday life.

  Book value of purchase and accounting principles

The Baldwin Company has just purchased $39,660,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for $3,966,000 (1/10th of its original cost). What wil..

  Financial reports and business decisions

Suppose you have been employed into a new firm to oversee the accounting department. Explain what type of financial reports would you expect to see in your department?

  Statement about tax-exempt organizations

Which of the following is a not true statement about tax-exempt organizations?

  Amount of income tax expense as a separate item

Provincial Inc. reported the following before-tax income statement items: Provincial has a 30% income tax rate. Provincial would report the following amount of income tax expense as a separate item in the income statement:

  Unadjusted balance in insurance expense

On December 31, 2010, the unadjusted balance in Prepaid Insurance was $4,800. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2010. The unadjusted balance in Insurance Expense w..

  Trade deficits and trade surpluses

Many individuals believe that trade deficits are troubling economic condition which points out weakness in economy while trade surpluses are sign of strength and rising prominence for economy.

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