User Account

All Pages

Use straight line depreciation

Assignment Help Financial Accounting
Reference no: EM131287836

A proposal to manufacture 4731 ton/yr of a halogenated organic intermediate is set out below:

Estimated fixed capital cost $2,500,000

Construction time 2 years

Working capital 20% of FCI

Operating cost (exc. depreciation) $ 523 per ton of product

Revenue from sales $ 862 per ton of product

Plant life 10 years

Salvage value $400,000

Income tax rate 47 %

Depreciation Life 7 years

im 20%

Assume 50% of the total FCI is spent in first year of construction period

Use Straight line depreciation. No Start-up expense

Land component of FCI is 20%

What is the NPW of this project? (Hint: make use of excel or a formula sheet to speed this up.)

Reference no: EM131287836

Questions Cloud

Calculate the adjusted cash balance per books : Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31.
Operations on multiple-step format income statement : The following amounts are from Silverton Co.’s 2014 income statement: What amount would Silverton show for income from continuing operations on a multiple-step format income statement?
Apply the equity method of accounting : Assume you are working on a complex consolidation team assigned to apply the equity method of accounting. You have reached an impassable dispute with another team member working on this project relating to the proper way to apply the equity method of..
Make decision to issue such debt instrument : There are many financial decisions that face companies today. One of which is how to secure additional monies in order to buy new equipment, construct a new building or improve a manufacturing plant. A means to obtain these funds is by the issuance o..
Use straight line depreciation : A proposal to manufacture 4731 ton/yr of a halogenated organic intermediate is set out below: Assume 50% of the total FCI is spent in first year of construction period. Use Straight line depreciation. No Start-up expense. What is the NPW of this proj..
Compute amount of amortization of deferred pension gain : City of Frisco has a defined benefit pension plan. As of January 1, 2015, the following balances were computed for its pension plan. Compute the amount of amortization of deferred pension gain or loss for the calendar year 2015. Compute the amount of..
Statements concerning custodial accounts : All of the following statements concerning custodial accounts are correct, except:
Recommend improvements in procedures : You have been asked by the board of trustees of a local church to review its accounting procedures. The church's board of trustees has delegated responsibility for financial management and the financial records to the finance committee. Describe the ..
Discuss the implications of this illegal act : Enormo Corporation is a large multinational audit client of your CPA firm. One of Enormo' s subsidiaries, Ultro, Ltd., is a successful electronics assembly company that operates in a small Caribbean country. Discuss the implications of this illegal a..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Assuming these securities are not impaired

In both investments, the carrying value and the fair value of these two investments are the same at 12/31/17. Elaina's stock investments does not result in significant influence on the operations of Laser Company.  Prepare the journal entries to rec..

  Evaluate the amount of depreciation expense

Evaluate the amount of depreciation expense recognized in Year 2, Year 3, and Year 4 under (a) the revaluation model of IAS 16 and (b) U.S. GAAP. Evaluate the book value of the building under the two different sets of accounting rules at 2 nd Janu..

  Evaluate the cost and market value

Since you still own General Motors and General Electric, could these be reclassified to long-term securities?

  Prepare differential analysis dated

Sell or Process Further Jackson Lumber Company incurs a cost of $394 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $558 per hundred board feet. Prepare a differential analysis dated March 4, 2014, on whether to s..

  Calculate and document tax refund or payments

Tax Scenario. Use the required tax forms (1040 & Schedules) to calculate and document John and Jamie’s tax refund or payment. You can also upload a Word, Excel, or other document to show your calculations. You can omit the Earned Income Tax credit fo..

  Accounting for uncertainty in income taxes

Based upon your review of  FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" or other similar government web sites that explain FIN 48 as used by Weis Markets Inc. Do you think Weis Markets Inc. is trying to delay taxes or mere..

  Affected parties-what is the fundamental ethical issue

Spencer Wilkes is the marketing manager at Darby Company. Last year, Spencer recommended the company approve a capital investment project for the addition of a new product line. What is the fundamental ethical issue? Who are the affected parties? If ..

  What is the amount of my capital gain or loss

I purchase a consol with a coupon payment of $100 when the interest rate is 10 percent. When I sell the consol, the interest rate has risen to 20 percent.-   What is the amount of my capital gain or loss.

  Properly attributable to the cost of land

Which of the following is properly attributable to the cost of land?

  Compute the net cash flows from operating activities

Brandon Inc. reported the following items in its balance sheet and income statement. Compute the net cash flows from operating activities using the indirect method.

  Receipts from case sales

A Company’s experience shows that 30% of its sales are for cash and 70% are on credit.An analysis of credit sales shows that 50% of credit sales are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be ..

  Compute pension expense

The following facts apply to the pension plan of Boudreau Inc. for the year 2014. Using the preceding data, compute pension expense for the year 2014. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expe..

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