What is the pp for each contract

Assignment Help Accounting Basics
Reference no: EM132170226

Question -

1) Defco Constructions is offered two contracts on the same day for building a new retirement village and a new library complex respectively. The contracts promise total profits of $11 million and $14 million, extending over four years and five years, respectively. Each will require investment of $8 million. On the basis of ARR, which contract is more profitable?

2) Defco Constructions (in exercise 1) recovers its project investment by straight-line methods so that the $10 million is recovered by the end of each project. Assuming profits are also booked in a straight-line fashion, what is the PP for each contract?

Reference no: EM132170226

Questions Cloud

How many days of working capital financing does midas need : You calculate the following from Midas Company's financial statements: Days in Receivables = 43. How many days of working capital financing does Midas need
The organizational structure and management team : A brief description of each of the brands/business units and the products and services offered.
Explain the beneficial pricing strategies : After watching the pricing video, refer back to the Are You Sitting on a Million Dollar Idea? video from Week 6. Choose the most beneficial pricing strategies.
Would utilitarianism and universalism explain your action : Would utilitarianism and/or universalism explain your actions? Would profit maximization, if you're discussing your behavior in the corporate context?
What is the pp for each contract : Defco Constructions (in exercise 1) recovers its project investment by straight-line methods, What is the PP for each contract
Why espn want to buy ufc and what is the value : Search about the news, know what is going on right now and just write your free opinion on this. Why ESPN want to buy UFC, what's the value.
How your manager will likely monitor your performance : Phil Gerber owns a consulting firm and is an expert sales manager and trainer. As you listen to this podcast, imagine that the speaker is your first sales.
What is miscellaneous income : What is the net Form W-2 wages? What is miscellaneous income? What is Schedule B income (Interest and dividends)
How to help others find success in sales : This brief article provides a synopsis of McKinnis' research and publications on sales management practices. Rod McKinnis is the author of Sales Is Simple.

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