A company is evaluating a project requiring capital

Assignment Help Accounting Basics

Reference no: EM13591454

A company is evaluating a project requiring capital expenditure of 620,000. estimated life of project is four years and no salvage value. estimated net income and net cash flow from the project are.

year net income net cash

1 45000 200000
2 85000 240000

3 5000 160000

4 15000 170000

The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively.

what is the average rate of return on investment, giving effect to depreciation on the investmen?
what is the net present value

Reference no: EM13591454

Questions Cloud

A company has 7000 obsolete toys carried in inventory at a : a company has 7000 obsolete toys carried in inventory at a manufacturing cost of 6 per unit. if the toys are reworked

You notice that you can barely see your cell phone which : you height of your eyes above the water 1.75 m are standing 2.00 m from the edge of a 2.50 m deep swimming pool. you

He net present value has been computed for proposals a and : he net present value has been computed for proposals a and b. proposal a proposal binvested amount

A pair of narrow parallel slits separated by a distance of : a pair of narrow parallel slits separated by a distance of 0.294 mm are illuminated by the green component from a

A company is evaluating a project requiring capital : a company is evaluating a project requiring capital expenditure of 620000. estimated life of project is four years and

If your broker wanted you to purchase a 6 bond when : if your broker wanted you to purchase a 6 bond when investments with similar risk were paying 8 would you purchase the

A company considering a capital investment proposal that : a company considering a capital investment proposal that costs 460000 an estimated life of four years and no residual

Blackwelder snow removals cost formula for its vehicle : blackwelder snow removals cost formula for its vehicle operating cost is 1240 per month plus 348 per snow-day. for the

Royal company manufactures 19000 units of part r-3 each : royal company manufactures 19000 units of part r-3 each year for use on its production line. at this level of activity

User Account

All Pages