User Account

All Pages

Determine the present value index for each proposal

Assignment Help Accounting Basics
Reference no: EM132901635

Problem -   Dip N' Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows:

Ft. Collins Boulder

Total present value of net cash flow $264,290 $270,480

Amount to be invested (247,000) (294,000)

Net present value $17,290 $(23,520)

a. Determine the present value index for each proposal.

b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.)

Reference no: EM132901635

Questions Cloud

Fetal alcohol syndrome disorder is condition : Fetal Alcohol Syndrome Disorder is a condition in a child that is resulted from alcohol exposure during the mother's pregnancy causing brain damage
Reconcile civil liberty and national security : Combating terrorism has entailed restrictions on civil liberties. How can we reconcile civil liberty and national security?
Research supporting the theory : There is research supporting the theory that students who are literate in their home language are more likely to be literate in second or subsequent language
Brochure for immigrant families in community : Create a brochure for immigrant families in your community that contains at least three community resources that support English acquisition.
Determine the present value index for each proposal : Dip N' Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Determine the present value index for each proposal
Communication such as nonverbal and auditory cues : Identify challenges that may be present in the online classroom communication such as the nonverbal and auditory cues?
Oversee macroeconomic policy : Imagine that you oversee macroeconomic policy. What are some of the problems, difficulties, or hardships caused by unemployment?
Describe trade-off you have made in terms of your income : Describe a trade-off. you have made in terms of your income or your time. What choice did you make with your money or time?
About styles of communicating to audiences : General experience and perception about styles of communicating to audiences and others in your work experience(general)

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd