Timing of cashflows, Cost Accounting

Assignment Help:

The time of cashflows for the project are as follows;

  • Operating Income (rent) is received annually, in advance. For NPV purposes they are assumed to have been received at the beginning of the year.
  • Operating Expenses are averaged over the year and are assumed to be paid in the year they are incurred, unless otherwise stated.  For NPV purposes they are assumed to have been paid at the end of the year.
  • Operating account Interest Income and Expense are received/expended at the beginning of each year (based on balances at the end of the previous year).
  • Receipts for the disposal of assets (including final disposal of the project) are received at the beginning of each year immediately following the last year of their useful life or identification for disposal.
  • Expenditure for the acquisition and/or replacement of assets is made at the beginning of the year in which they are acquired.
  • Loan payments are made at the beginning of each year (ie payments in advance). The final loan payout (if applicable) is made on the first day of the year following the disposal of the project.
  • Tax receipts and payments occur on the first day of the year following the year they are incurred.
  • Capital receipts and payments are made at the beginning of the year they are received/expended.

Related Discussions:- Timing of cashflows

Interest earned on down payment, You sell a machine for $600,000. You allow...

You sell a machine for $600,000. You allow the client to pay 1/3 at the time of the sale and 1/3 at the end of year one and 1/3 at the end of year two. The company earns 10% on ass

Circle the categories of values method , You perform a travel cost study th...

You perform a travel cost study that looks at the relationship between the cost of visiting a lake (including costs of travel, value of time spent not working & any entry fees), it

Elements of cost, Elements of Cost Nearly there are three elements of c...

Elements of Cost Nearly there are three elements of cost - labor, material, and expenses. These are additional divided into indirect and direct material, indirect and direct la

Account analysis method of cost estimation, Account Analysis Method of Cost...

Account Analysis Method of Cost Estimation By Utilizing account analysis, the accountant classifies and examines each ledger account like variable mixed or fixed. Into their v

Overhead cost analysis and classification, Overhead Cost Analysis and Class...

Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an  example of,

Cost Accounting, Cost Accounting advantage and features

Cost Accounting advantage and features

Calculate the equivalent annual cost, A plant is considering the replacemen...

A plant is considering the replacement of a piece of equipment in its materials handling system with a new piece. If the company's cost of capital is 10%. Should the present asset

Costs and revenues over a range of activity levels, 1. Single product or si...

1. Single product or single mix of products 2. Variable cost, fixed cost and selling price are constant 3. The level of production will equal the level of sales Example:

Apply the payback criterion and discounted payback criterion, Consider the ...

Consider the following two mutually exclusive projects:   Whichever project you choose, if any, you require a 15 percent return on your investment.   a. If you apply the payb

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