What is its NPV

Assignment Help Accounting Basics
Reference no: EM132702553

Question - A small industrial machine costs $80,000 and is expected to earn annual net cash inflows of $35,200, $32,000, $28,800 and $25,600, before it wears out sufficiently to be unreliable and must be sold for an estimated $8,000. If funds earn 10 per cent, what is its NPV?

Reference no: EM132702553

Questions Cloud

Provide journal entry to recognise the goodwill : Provide journal entry to recognise the goodwill and to eliminate the Delta investment in pre-acquisition capital and reserves
Calculate the unit cost growth rate : -Calculate the unit cost growth rate using the constant rate of change model with continuous compounding.
Measure the effectiveness of each leadership strategy : Why HRM function is important to employee management and labor relations. Discuss how you plan to measure the effectiveness of each leadership strategy.
Analysis of a recent ethics scandal internet resources : An analysis of a recent ethics scandal Internet resources. Your report should (1) discuss the conditions that gave rise to unethical business strategies
What is its NPV : A small industrial machine costs $80,000 and is expected to earn annual net cash inflows of $35,200, If funds earn 10 per cent, what is its NPV
Did call well for bernhardt : Bernhardt's message is a predication of the coming ubiquitous nature of "screens." And here we are, all with smartphones and their ilk. Did he call it well?
What risks are involved in a business going global : What risks are involved in a business going global?
How might you test the potential of your new idea : How might you test the potential of your new idea with your target customers and What criteria did you use when choosing this idea as your top Idea
Maslow hierarchy of needs : To satisfy human needs, people and organizations are compelled to engage in social and economic exchanges with other people and organizations.

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.

  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!

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