Accounting rate of return, accounting, Basic Statistics

Assignment Help:
Ghosh Ltd is considering expanding its business and has to decide between taking on Project A or
Project B. Both projects have a life of four years. Equipment is expected to have no scrap value.
Other information about the projects is as follows:
Project A Project B
Initial outl ay $150 000 $140 000
Annual s ales $100 000 $120 000
Annual purchases $40 000 $65 000
Other costs as a percentage of sales 8% 5%
Increase in working capital $10 000 $18 000
Ghosh Ltd uses a cost of capital of 10%. Discounting factors at 10% are as follows:
Year 1 0.909
Year 2 0.826
Year 3 0.751
Year 4 0.683
Using a cost of capital of 10% Project B has a net present value of$15281

Related Discussions:- Accounting rate of return, accounting

Estimate the population mean flying time for the pilots, The mean number of...

The mean number of hours of flying time for pilots at Continental Airlines is 49 hours per month (The Wall Street Journal, February 25, 2003). Assume that this mean was based on ac

What is meaning of the ldd detection strategy, A, Suppose a CD player playe...

A, Suppose a CD player player tries to detect whether its partner is C player instead of a DD player by looking for external signals that are at least as typical for DD players tha

QT, Following is the trend equation for a time series data on a monthly bas...

Following is the trend equation for a time series data on a monthly basis for years 2007 to 2009: Y=2.375+0.895X. Find Y for 2nd quarter of 2010.

Correlation, difference between positive and negative correlaiton

difference between positive and negative correlaiton

INDEX NUMBER, FUNCTION SIMPLE AGGREGATIVE, SIMPLE RELATIVE

FUNCTION SIMPLE AGGREGATIVE, SIMPLE RELATIVE

Capital budgeting techniques, Capital budgeting Techniques Financial com...

Capital budgeting Techniques Financial commitment spending budget (or investment appraisal) is the planning process used to figure out whether a company long run purchases such

Group project in statistics, I) Introduction 1) Topic (s) 2) Survey Questi...

I) Introduction 1) Topic (s) 2) Survey Question 3) Type of Sampling 4) Why? II) Calculations 1) Data Analysis (Charts, sample mean, sample standard deviation) 2) Probability 3) E

Sample space of an experiment, 1.The resumés of 2 males applicants for a co...

1.The resumés of 2 males applicants for a college teaching position in chemistry are places in the same file as the resumés of 2 female applicants. Two positions become available a

Completely randomized design, Ask question #MinimumAgency revenues. An econ...

Ask question #MinimumAgency revenues. An economic consultant was retained by a large employment agency in a metropolitan area to develop a regression model for predicting monthly a

Write Your Message!

Captcha
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