Great northern fishing company

Assignment Help Financial Accounting
Reference no: EM13954547

Great Northern Fishing Company is contemplating the purchase of a new smoker. The smoker will cost $61,800 but will generate additional revenue of $34,000 per year for 6 years. Additional costs, other than depreciation, will equal $11,400 per year. The smoker has an expected life of 6 years, at which time it will have no residual value. Great Northern uses the straight-line method of depreciation for tax purposes.

Determine the net present value of the investment if the required rate of return is 12 percent and the tax rate is 30 percent.

Reference no: EM13954547

Questions Cloud

How many multiples of 4 lie between 10 and 250 : The first and last term of an A.P. are 8 and 350 respectively. If its common difference is 9, how many terms are there and what is their sum? How many multiples of 4 lie between 10 and 250? Also find their sum. The sum of first 15 terms of an A.P. is..
Which if any machine should be purchased : Ignoring taxes, determine the net present value of investing in machine 8. c Which, if any, machine should be purchased?
The internal rate of return of the investment : the internal rate of return of the investment
The herbolt company is considering a new line of business : The Herbolt Company is considering a new line of business. Starting the business will require an initial investment in equipment of $304,000
Great northern fishing company : Great Northern Fishing Company is contemplating the purchase of a new smoker.
The prospect of receiving : Suppose you face the prospect of receiving $1,093 per year for the next 9 years plus an extra $932 payment at the end of 9 years.
Pete sampras corporation : Pete Sampras Corporation purchased for $22,500 as a trading investment bonds with a face value of $20,000. At December 31
Castle company provides estimates for its uncollectible. : Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,630 at the beginning of 2016 and a $23,110 credit balance at the end of 2016
Explain why you would or would not be favorably inclined : Explain why you would or would not be favorably inclined to make the loan.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What should be reported as total intangible assets

The adjusted trial balance of the Laventhal Corporation as of December 31, 2014. What should be reported as total intangible assets on Laventhal's December 31, 2014 balance sheet?

  Financial institution which has a possible liability payment

Consider a financial institution which has a possible liability payment of $ 2.5 million at the end of 3 years. The institution is currently considering an investment in a bond portfolio with a view to ensure that it would able to meet the liability ..

  Generate a net cash flow over the remaining years

The equipment's utility to the company has declined because they expect it to generate a net cash flow over the remaining years of $200,000 from its operation. If the asset has been impaired, record the journal entry to recognize the loss.

  Compute the amount of cash

Compute the amount of cash to be reported on Eastwood Co.'s balance sheet at December 31, 2007 and  Indicate the proper reporting for items that are not reported as cash on the December 31, 2007, balance sheet.

  How much must superb pay back at maturity

Superb Drive-Ins borrowed money by issuing $6,000,000 of 4% bonds payable at 97.5.

  Recalculating cost of equity - wacc1nbspecology labs inc

recalculating cost of equity - wacc.1.nbspecology labs inc. will pay a dividend of 3 per share in the next 12 months

  Explain what costs will be inventoriable for toastie

Explain what costs will be inventoriable for Toastie. Explain why Toastie's administrative costs would or would not be inventoriable.

  The accounting analysis project is due at the end of week 8

the accounting analysis project is due at the end of week 8. the project is based upon you completing the bellwether

  Journalize the adjusting entry

On December 31, it was estimated that goodwill of $6,000,000 was impaired. In addition, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000 on April 1. Journalize the adjusting entry on December 31 for the impaired..

  Compute the present worth of this activity

A riverfront walkway was constructed for $1,000,000. The annual maintenance cost is $12,000 per year. It is also estimated that a repair cost of $100,000 will be needed at the time the walkway reaches its half useful life. Using an annual interest ra..

  Accounting treatment for payroll in a companya companys

accounting treatment for payroll in a company.a companys payroll for the week ended may 15 included earned salaries of

  What is willis ebitda coverage ratio

It has $2 billion in lease payments and @1 billion must go toward principal payments on outstanding loans and long term debt.What is willis EBITDA coverage ratio?

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