Determine the amount of the original investment

Assignment Help Managerial Accounting
Reference no: EM132568935

Virginia Company invested in a four -year project. The company's expected rate of return is 10%. Additional information on the project is as follows:

Year             Net of Income Taxes           Present Value of P1 at 10%

1                        P40,000                                .909

2                          44,000                                 .826

3                           48,000                                 .751

4                             52,000                                 .683

Required:

Question 1: Assuming a positive net present value of P10,000, determine the amount of the original investment.

Reference no: EM132568935

Questions Cloud

What is its weighted average cost of capital : Assume that a not-for-profit company has $20 million of long-term tax-exempt debt with an interest rate of 6.0%. What is its weighted average cost of capital
Discuss how price controls affect a competitive market : Discuss how price controls affect a competitive market. Be sure to refer to the demand and supply model when discussing efficiency. Also discuss how equity.
Describe what smith meant by the invisible hand : Describe what Smith meant by the "invisible hand." How exactly does it function? Describe how Smith's work is a reaction to mercantilism, which dominated.
How much of the dividend must be paid : How much of the $250,000 dividend must be paid as a non-eligible dividend before an eligible dividend can be designated
Determine the amount of the original investment : Assuming a positive net present value of P10,000, determine the amount of the original investment. Virginia Company invested in a four -year project.
Evaluate any competitors existing production : Evaluate any competitors' existing production in the chosen country. Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis's.
What interest rate will you pay : Celia Granda must pay today $350,000.00, as they do not have that amount available, What interest rate will you pay
Demonstrate or compute the net present value : Present value of P1 for 8 periods at 18% .266 Present value of an annuity of P1 for 8 periods 4.078.NPV Company is considering to buy a new machine
Analyze the strategic objectives of your organization : You are to analyze the strategic objectives of your organization, and reflect on your contribution towards achieving such objectives.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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