What is the minimum cash inflow to be realized each year

Assignment Help Accounting Basics
Reference no: EM132688765

Problem 1: Drew Company needs an automated equipment worth 500,000 with economic life of 6 years. The cost of capital is 8%. What is the minimum cash inflow to be realized each year to justify this investment?

Reference no: EM132688765

Questions Cloud

Compute for each project npv at a required rate : Compute for each project's 1.) NPV at a required rate of 12%, 2.) PBP, 3.) ARR. 2 projects with the same investment of 425,000
Compute for the investment pbp : An annual cash revenue of 2,981,160 and annual cash outlay of 2,293,200 is estimated in considering an investment. Compute for the investment's PBP
Calculate the ph of the solutions : Calculate the pH (not pOH) of the following solutions. Given Kw = 10. Please list all steps for full credit:
Design a multi-platform application that has a desktop : Design a multi-platform application that has a desktop, web and mobile interface for a property rental company, called UMUC Property Rentals.
What is the minimum cash inflow to be realized each year : 500,000 with economic life of 6 years. The cost of capital is 8%. What is the minimum cash inflow to be realized each year to justify this investment?
What happened to your country and your organizations : Under the circumstances of Covid-19, what happened to your country and your organizations? How are organizations tackling with the Covid-19?
How did sean help will tell his story : How did Sean help Will tell his story and What situations were presented calling for immediacy, and how did Sean manage those situations?
What is the energy of an electron : What is the energy (in J) of an electron in the = 6 of the Bohr H atom? = 2.18 × 10-18 J (answer as a decimal number or in scientific notation in the following
Differences between ionic and covalent bonding : How would you compare and contrast the similarities and differences between ionic and covalent bonding?

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