What is the? project NPV

Assignment Help Managerial Accounting
Reference no: EM132959768

Question - Manning Inc is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV ( no decimal places) (Hint: Cash flows from operations are constant in Years 1 to 3.)

WACC 9%

Net investment in fixed assets (depreciable basis) $75,000

Required net operating working capital at t=0 $15,000

Straight-line depreciation rate 33.333%

Annual sales revenues $75,000

Annual operating costs (excl. depreciation) $25,000

Tax rate 21.0%

Reference no: EM132959768

Questions Cloud

How does one personality impact work performance : Define personality. How does one's personality impact work performance?
What is important to employees or potential employees : What is more important to employees or potential employees today; compensation or benefits? Why?
Prepare a management letter listing three weaknesses : Prepare a Management Letter listing THREE weaknesses in internal control. For each weakness state the impact and recommend a control
What is the current market price of the bonds : The current market rate of interest on the Bright Sun bonds is 11.02 percent. What is the current market price (intrinsic value) of the bonds
What is the? project NPV : Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV ( no decimal places)
What is business intelligence : 1. What is business intelligence? 2. Why is business intelligence important in a company?
Discuss risk management and return on investment : Discuss Risk management and return on investment (include the formula to calculate the return on investment
Describe the principal audit procedures to be performed : Describe the principal audit procedures to be performed in respect of the amount recognized as an expense for the advertising of the QB brand.
Evaluate human resource management : Explain in detail, giving examples of why it is important to evaluate Human Resource Management as it relates to an organization's bottom-line.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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