Determine the ror if this investment for the following cases

Assignment Help Financial Accounting
Reference no: EM13150185

A gold mine can be purchased for $100 million. Determine the ROR if this investment for the following cases. The estimated useful life of the mine is 10 years. a) the annual benefit is $10 million b) The annual benefit is $10 million the first year and increases by 10% per year. c) The annual benefit is $20 million d) The annual benefit is $30 million e) If the first year benefit is $15 million, at what percentage must the benefits increase to give a ROR of 20%

Reference no: EM13150185

Questions Cloud

What happens to the afc per paper and the mc per paper : If sales fall by 20 percent from 1 million papers per month to 800,000 papers per month, what happens to the AFC per paper, the MC per paper, and the minimum amount that you must charge to break even on these cost.
What does this imply for the exchange value of the pound : If the dollar is devalued against gold and the pegged rate is changed to $40 per ounce, what does this imply for the exchange value of the pound? Explain your answer.
Assignment: cost benefit analysis : Assignment: Cost Benefit Analysis  prepare a 5-page cost/benefit analysis of the Sarbanes-Oxley Act.
Compute the vapor pressure of a solution : Calculate the vapor pressure of a solution made by dissolving 109 grams of glucose
Determine the ror if this investment for the following cases : A gold mine can be purchased for $100 million. Determine the ROR if this investment for the following cases. The estimated useful life of the mine is 10 years.
Inventory to manipulate income : How could management use inventory to manipulate income? What is the difference between periodic and perpetual inventory systems? Which items and costs should be included in inventory?
Company charges the same $5.00 : Company charges the same $5.00 price for the irmagazines. Each wants to maximize its salesgiven the$5.00price. Eachweek,therearetwopotentialcoverstories. Oneison politics.
Efficient workforce to maintain productivity levels : Efficient workforce to maintain productivity levels, and developing strategies for the ultimate reduction and lay-off of employees.
Calculate the moles of argon present : A 355 ml container holds .146g of Ne and an unknown amount of Ar at 35 degrees C and a total pressure of 26 mmHg. Calculate the moles of Ar present

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compare the two machines and state basis of your compare

Compare the two machines and state the basis of your comparison. Include a cash flow diagram for each alternative. Assume all interest rates at 6% per year unless otherwise stated.

  What is impact of this transaction on net operating income

The cost of the goods sold is $2,400. The credit card company charges a 3% fee. What is impact of this transaction on net operating income.

  Explain how do the transactions in divorce agreement affect

The divorce decree further states that alimony is to cease upon the death of the wife. In 2011, he made six payments. Explain how do the transactions in the divorce agreement affect Arnold's and Barbara's taxable income

  Evaluate service revenue and salaries expense

Judi uses the subsequent chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent ..

  Explain how the change in expectations cause the bond market

explain how the change in expectations causes the bond market to move from initial equilibrium, E1, to final equilibrium, E2.

  How many shares does bob own in brown corporation

Applying the stock attribution principles applicable in the case of a stock redemption, how many shares does Bob own in Brown Corporation?

  Evaluate the operating income under variable

Evaluate the operating income under variable costing and absorption costing for each month

  Explain how many units did the company produce during year

Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing. Ending inventory was zero. Explain how many units did the company produce during the year?

  Methods of inventory costing

Why do you believe we have four? Do we need four? What are the advantages and disadvantages of having four methods?

  What is the residual income of the project

The company is investigating an investment of $400,000 in project that will generate annual net operating income of $78,000. What is the return on investment of the project? What is the residual income of the project? Should the company invest in ..

  Stockholders equity and revenue

Classification of items  - Classify each of the above accounts as an asset (A), liability (L), stockholders' equity (SE), revenue (R), or expense (E) item.

  What is the optimal length of a contract

with L being contact length in months. What is the optimal length of a contract , L, which Weyer could make with steuben? Derive and explain your answer.

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